The proposed reform of the Finnish gambling system
The Finnish government plans to reform the gambling system by opening it to competition by 1 January 2026. The proposed Gambling Act would regulate licensed gambling activities and their supervision in Finland. By opening the market to competition while maintaining effective regulation and supervision, the reform seeks to balance economic interests with the need to protect consumers and prevent gambling-related harm.
According to the proposed Gambling Act, Veikkaus Oy's monopoly will partially end, in particular with regard to betting games and online slot machines and casino games, which would be opened to competition under a licensing model. According to the proposed Gambling Act, gambling could be offered under an exclusive license or a gambling game license. In addition, the supply, manufacture, installation and adaptation of gaming software for gambling purposes would require a gaming software license.
An exclusive license for the operation of lotteries and betting games, slot machines and physical (not online) casino games, and toto games could only be granted to a limited liability company controlled by the state. A gambling license could be granted for fixed odds betting, variable odds betting, electronically transmitted casino games, electronic money bingo and electronically transmitted slot machines. Gambling license holders would operate in a competitive and state-regulated gambling market.
In order to obtain these licenses, the applicant companies and their significant owners and management would have to be reliable and suitable to carry out the activities described in the Act. The non-transferable licenses would be granted for a fixed term, with exclusive licenses being valid for ten years and gambling and gaming software licenses, valid for up to five years.
Major changes
The proposed Gambling Act would among other things, regulate player registration, identity and residency verification, age limits, and playing through a gaming account. The Gambling Act would also impose significant restrictions on the marketing of gambling activities.
Oversight of gambling operations would be transferred from the National Police Board to a proposed licensing and supervison agency, which would have the ability to combat illegal gambling activities through, for example, administrative sanctions or the blocking of the payment and online activities of gambling operators.
The transition to a licensing system would also have an impact on taxation. The Lottery Tax Act and the Income Tax Act would be amended so that gambling activities offered in Finland under a license from another country would be subject to Finnish lottery tax. The lottery tax rate would also be increased from 12% to 22%.
New age - new rules?
It remains to be seen how the proposal will develop. At this stage, however, it seems that changes in the Finnish gambling market are inevitable. Fondia will monitor the reform and assist our customers to understand the changes. If you need assistance in understanding the changing gambling market, please contact us!