Finland Sets the Course for a Reshaped Gambling Landscape

Finland Sets the Course for a Reshaped Gambling Landscape

Finland’s long-discussed shift away from its monopoly-based gambling system has taken another tangible step forward, following new details about the structure of the country’s upcoming licensing framework. Analysts reviewing the recently published legislative proposal HE 16/2025 outlined how the reform will reshape both operational responsibilities and market-entry pathways once the new system becomes active on 1 January 2027. The government’s plan marks a decisive change in how gambling activity will be structured, supervised, and supplied, with a model designed to bring more transparency and formal oversight to an industry historically dominated by a single state entity.

The new framework introduces a two-track system that separates frontline operators from software providers. Under this structure, companies that deliver online betting or online casino products will apply for B2C gambling game licences, while suppliers that produce or distribute game software will fall under a new B2B licensing regime. This division aims to establish clarity in operational roles, reduce regulatory blind spots, and bring Finland in line with broader European regulatory expectations that distinguish between operational and supply-chain accountability.

The practical effect of this reform is expected to be significant. Operators seeking B2C licences will be required to align with terms outlined in the proposal, notably a five-year licence validity period and a tax rate of 22 per cent of gross gaming revenue. The application phase for operators is projected to begin in early 2026, giving companies time to prepare compliance systems, adjust product portfolios, and assemble documentation that will meet the expectations of Finland’s incoming supervisory body.

At the same time, the new rules impose a clear obligation on licensed operators: they must rely exclusively on software produced by licensed B2B suppliers. This requirement applies to all companies offering online betting or casino activities under the forthcoming structure. While applications for software suppliers will not open until early 2027, the market will be given a one-year transition period, with full compliance set for mandatory enforcement from 1 January 2028. Industry analysts have noted that this phased approach appears designed to prevent supply-chain disruption while still enforcing a stricter vetting process than what previously existed in the Finnish market.

The dual-licence model forms only one element of a broader restructuring effort. To comply with EU competition rules, Finland will reorganise the state-owned operator Veikkaus into two legally distinct entities that remain under the same corporate umbrella. One branch will continue to control lottery products, physical slot machines, and land-based casino operations under a renewed ten-year monopoly arrangement. The other branch will enter the competitive arena, participating in the newly opened online betting and casino sector under the same licensing conditions applied to private companies. This structural change is intended to eliminate potential conflicts of interest arising from Veikkaus’ current dual role as both regulator and market participant. This arrangement has drawn criticism in recent years.

Oversight of the new market will fall under a supervisory authority housed within the forthcoming Permit and Supervision Agency. The authority will be funded through industry supervision fees and will take charge of licensing, compliance inspections, enforcement actions, and monitoring of both B2C operators and B2B providers. Analysts following the legislative process believe this system may reduce historically unregulated activity, particularly online operations conducted by offshore entities. Previous gaps in supervision allowed foreign operators to reach Finnish consumers with limited regulatory friction, but the new framework seeks to establish clearer pathways for both compliance and enforcement.

The reform arrives after years of public and political debate regarding the sustainability of Finland’s monopoly model. Scrutiny intensified in the lead-up to demonopolisation, particularly as Veikkaus faced repeated criticism concerning its conduct and market influence. Swedish operator ATG publicly questioned Veikkaus’ practices, raising concerns about competitive fairness and insisting that structural reforms were long overdue. At the same time, Veikkaus’ financial performance in early 2025 indicated a downward trajectory, reinforcing the need for a system that could support a more competitive, adaptable market environment.

The government’s approach suggests that Finland intends to move gradually but decisively toward a new regulatory era. By creating two distinct licensing pathways, restructuring its state operator, and establishing a new supervisory authority, the country is laying the foundation for accountability and clear operational boundaries. Market analysts view the reform as a framework shaped not only by domestic political considerations but also by broader European standards that emphasise transparency, separation of responsibilities, and long-term compliance structures.