Finland Maps Out a Controlled Shift to Licensed Gambling

Finland Maps Out a Controlled Shift to Licensed Gambling

Finland has formally entered a new phase in its gambling policy after President Alexander Stubb approved legislation that reshapes how gambling will be regulated in the country. The new Gambling Act brings an end to the long-standing monopoly model for online gambling and replaces it with a licensing system that introduces competition under state supervision. Rather than an abrupt opening, the reform outlines a gradual transition that will unfold over several years.

The first concrete step will take place on March 1, when gambling operators are permitted to begin applying for licences. While this marks the administrative start of the new framework, the competitive online market itself is not expected to go live until July 1, 2027. The extended timeline reflects a cautious legislative approach, allowing regulators to prepare oversight structures while operators adapt to new requirements.

During the initial phase, responsibility for handling licence applications will remain with the National Police Board. This arrangement is temporary. From July 1, 2027, supervisory duties will be transferred to a newly established Finnish Supervisory Agency dedicated to gambling oversight. The creation of this authority signals a structural change, separating gambling regulation from general policing and placing it within a specialised institutional setting.

Veikkaus, the state-owned gambling company, will continue operating under monopoly protections until the end of June 2027. During this period, its exclusive position remains intact. Once the market opens, Veikkaus will retain sole rights to lotteries and physical slot machines but will be allowed to compete in the newly regulated online betting and casino segment. This hybrid model reflects the government's effort to balance competition with continued state control over selected gambling activities.

The reform also introduces longer-term technical conditions that will shape market operations beyond the initial opening. From July 1, 2028, licensed operators and holders of exclusive rights will only be permitted to use gambling software provided by suppliers that hold an approved licence in Finland. This requirement extends regulatory oversight beyond operators themselves, placing software providers within the same compliance framework and increasing accountability across the supply chain.

Consumer protection remains a central pillar of the new law. While the minimum legal gambling age remains unchanged at 18, identity verification will become mandatory for all forms of gambling. This applies across both online and land-based environments. Mandatory identification is intended to strengthen age controls, improve the effectiveness of self-exclusion tools, and support monitoring mechanisms aimed at reducing gambling-related harm.

Marketing rules under the revised framework draw clearer boundaries around what is permitted. Gambling advertising will be allowed on television, radio, and in print media, as well as on an operator's own digital platforms, including websites and social media channels. However, the law prohibits direct-to-individual interactive marketing. Influencer-based promotion and telephone marketing are also excluded, reflecting concerns about indirect targeting and personalised outreach.

Restrictions related to minors are detailed and extensive. Gambling promotion may not be directed at individuals under 18, and marketing materials must not include minors in any form. Advertising is prohibited in locations or at events primarily intended for children, and specific limitations will apply to outdoor advertising. These measures aim to reduce exposure among younger audiences while maintaining a controlled advertising environment.

Sponsorship is treated with similar caution. Licence holders are not allowed to sponsor events or competitions intended for minors, nor may they enter into sponsorship agreements with individuals under the age of 18. The intention is to prevent gambling brands from becoming associated with youth-oriented activities or public figures.

Transparency obligations apply across most marketing channels. Advertising must clearly display the legal age limit and provide information on tools available to help manage gambling behaviour. Except radio advertising, promotional materials must also identify the operator's licence status and name the supervisory authority. These requirements are designed to help consumers distinguish licensed operators from unregulated alternatives.

The enforcement framework grants the supervisory authority broad powers. In cases of non-compliance, regulators may order an activity to cease, impose administrative penalties, or issue fines. In more serious or repeated cases, licences may be revoked. This tiered approach allows for proportionate responses while maintaining the ability to act decisively when necessary.

According to the government, the central objective of the reform is to reduce gambling-related harm while improving the so-called channeling rate. In practical terms, this means encouraging consumers to use gambling services regulated by Finland rather than turning to offshore platforms. By offering licensed alternatives within a national framework, authorities aim to regain oversight over gambling activity currently beyond domestic control.