Finland Moves Toward Gambling Reform with Licensing Proposal

Finland Moves Toward Gambling Reform with Licensing Proposal

The Finnish Parliament has opened discussions on a proposed Gambling Act that could fundamentally change the country’s regulatory approach. The initiative seeks to replace Veikkaus Oy’s monopoly with a licensing system, introducing competition from private operators. If implemented, the law would reshape oversight and market structure for online casinos and sports betting.

The debate, launched on 12 February 2025, included an address from Prime Minister Petteri Orpo, outlining the government’s objectives. One of the central points is the move away from state-controlled gambling, a system in place since the merger of RAY, Veikkaus, and Fintoto in 2017. The shift aligns Finland with European markets that have moved toward regulated competition.

The Ministry of Social Affairs and Health has stated that the reform aims to reduce gambling-related harm while improving oversight. The government sees a licensing system as a means of managing gambling activity more effectively and addressing concerns related to unauthorized operators.

A key financial change has already taken place. Previously, Veikkaus profits were allocated to non-profit causes under the Lotteries Act. As of early 2024, these funds are now directed into the general state budget. This adjustment is intended to reduce reliance on gambling revenue to fund specific sectors and strengthen harm prevention efforts.

The introduction of a licensing model would alter market dynamics. The entry of licensed operators into a previously monopolized market would require Veikkaus to adapt to competition. This shift could change player behavior, revenue distribution, and industry structure. The government’s role in regulatory enforcement would expand, requiring clear guidelines on taxation, consumer protections, and responsible gambling measures. The financial impact would depend on how taxation and licensing fees are structured, potentially diversifying state revenue sources.

Legal and structural adjustments would be necessary to accommodate multiple operators. Compliance mechanisms, player protection policies, and regulatory oversight need to be clearly defined to ensure a stable transition. The new model’s success would hinge on the efficiency of its implementation and the government’s ability to address potential risks, including unlicensed gambling activities.

The licensing model is projected for implementation in 2026, setting Finland on a different regulatory course. While oversight and harm reduction remain central objectives, this policy shift introduces structural changes that will influence operators and consumers. The extent of market transformation will depend on licensing conditions, enforcement mechanisms, and taxation policies. As parliamentary discussions continue, further details on operator requirements and consumer safeguards will emerge. The gambling industry in Finland faces a significant transition, and the coming years will determine how this new framework functions in practice.