A pivotal moment for Finland’s gambling industry approaches as the Finnish parliament prepares to vote on a significant reform bill aimed at ending the state’s monopoly on online gambling. This legislative endeavor proposes a shift to a multi-licensing system, promising to transform the gambling landscape by 2027. However, the path to this reform has been fraught with opposition and debate, reflecting broader societal concerns.
The proposed legislation seeks to dismantle the exclusive control currently held by Veikkaus, Finland’s state-owned gambling operator, and introduce a competitive environment where multiple operators can obtain licenses. This move is expected to increase market competitiveness and potentially yield better consumer options. Advocates for the bill emphasize the benefits of increased choice for consumers and the potential for significant economic growth in the gambling sector.
Opposition to this reform has been vocal and well-organized, with lawmakers from several parties expressing concerns over consumer protection, the impact of advertising, and the pace of market liberalization. A key amendment proposed by the opposition was to increase the legal gambling age from 18 to 20, aiming to protect younger consumers from the risks associated with gambling. Other rejected proposals included implementing stringent security measures such as mandatory two-factor authentication and setting universal deposit and loss limits for all licensed operators. Some lawmakers also advocated for a substantial increase in the gambling tax rate to 25.5% of gross gaming revenue, arguing that higher taxes could mitigate potential social harms by redistributing revenue towards public welfare initiatives.
Advertising practices have been at the core of the debate. Critics of the current proposal have demanded strict advertising regulations, including banning gambling advertisements on TV and radio, as well as prohibiting ads at sports and public events. They have also called for warnings on gambling ads akin to those mandated for tobacco products, alongside restrictions on marketing targeted at individuals under 24 years old.
Despite these vigorous efforts to amend the bill, none of the proposed changes survived the parliamentary vote. In a decisive move, lawmakers voted against the amendments by a large margin of 153-21, with 25 abstentions. This outcome underscores the limited support for the amendments outside the Green and the Left Alliance parties.
Antti Koivula, chief compliance officer at Hippos ATG, a new entrant to the Finnish gaming market, remarked that the rejection of amendments was foreseeable. He noted that significant legislative change would require a substantial political shift, which remains unlikely in the near term. Koivula views the reform as a meaningful step forward, despite its imperfections, marking a new era for Finland’s gambling industry.
The government’s decision to maintain the original structure of the bill suggests a strong commitment to opening up the market by 2027. The timeline for developing the new licensing framework and approving operators is set to be a major focus throughout 2026. This period will be crucial in setting the groundwork for the reform’s success and ensuring a smooth transition to a liberalized market. With the national elections scheduled for April 2027, the emphasis remains on implementation rather than further legislative changes.
The potential economic impact of this reform is significant. By allowing multiple operators to enter the market, Finland could see increased tax revenues and job creation in the gambling and associated sectors. However, the reform also carries risks. Critics argue that increased access to gambling could lead to higher rates of addiction and associated social costs. They point to countries with more liberal gambling environments, where public health systems face challenges from rising addiction rates.
Furthermore, the international context cannot be ignored. As Finland moves towards a multi-license system, it joins several European countries that have shifted away from monopoly models. This trend reflects broader regulatory changes across Europe, aiming to balance market freedom with consumer protection. The Finnish reform will likely be watched closely by neighboring countries considering similar liberalization efforts.
In conclusion, Finland’s move towards a multi-licensing gambling system marks a significant shift in policy, with potential benefits and risks. While the reform faces opposition, its successful implementation could set a precedent for other countries grappling with similar issues. The upcoming vote will be a key moment in determining the future direction of Finland’s gambling industry, carrying implications for economic growth, consumer protection, and regulatory frameworks. As Finland stands on the brink of this transformation, the outcome will likely influence the nation’s gambling landscape for years to come.
