The Finnish Institute for Health and Welfare (THL) has identified the weaknesses in the government’s plans to abandon the monopoly model and liberalize the gambling market. The research and development institute operating under the Ministry of Social Affairs and Health has cautioned that the new gambling licensing system with a target implementation date of January 1, 2027, would jeopardize consumers and prioritize revenue over public health.
According to the institute’s latest study, the current state of the market also has its setbacks. Unauthorized gambling operators have taken over nearly half of the online gambling market in the country. While the THL acknowledged the implications associated with black-market gambling operations, it has also raised concerns about problem gambling rates once the new gambling regime comes into force.
The proposal to remove Veikkaus Oy, the Finnish state-owned agency, which is currently the sole provider of gambling services in the country, could lead to a rise in problem gambling, according to the THL. The study suggests that nearly 150,000 people, or 4.2% of the Finnish population fall into the categories of “problem” and “at-risk gamblers”.
This percentage represents a 3% increase compared to 2023. Therefore, the institute has called upon the government to consider limiting or removing the most addictive types of gambling products provided it launches the new gambling licensing system.
The Consultation Period on Plans to Launch New Gambling Licensing System Was Closed on August 18
Under the schedule of the Ministry of Interior, stakeholders and interested parties were able to share their opinions on the plans to diversify the gambling market by August 18. This has provided them with a valuable opportunity to propose changes, as the draft bill is not yet finalized and will be introduced during the spring parliamentary session in 2025. The proposal would aim to establish a transparent gambling licensing system, with a focus on improving the channelization rate.
The new system would allow Veikkaus to retain its exclusivity over lotteries, slot machines, and casino games in land-based gambling establishments, totalizator, as well as pool betting. The iGaming and sports betting market will be open to private licensed companies, with their Gross gaming revenue (GGR) subjected to a tax rate of 22%. Similar to Sweden and Denmark, players will be able to self-exclude themselves from gambling through a national self-exclusion register. Additionally, under the new model, bonuses, free spins, and other incentives will not be permitted.
The gambling regulatory powers of the National Police Board will be transferred to a new authority, operating under the Ministry of Finance’s administrative branch. It will be responsible for regulating the market, granting and rejecting license applications, and imposing fines, when necessary.
If endorsed, the new system will be implemented in stages, with the B2C license application process opening by the beginning of 2026. Software providers, on the other hand, will be able to apply for B2B licenses as of the beginning of 2027.
