Finnish Gambling Legislation: Is a Shift Away from the Monopoly Model Imminent?

Finland might be on the verge of a fundamental reorientation of its gambling policy. The state monopoly of the provider Veikkaus has been a subject of discussion for years. A leading industry expert now sees clear signs for a liberalization. It is expected that the Finnish government will soon undertake a revision of the existing gambling laws.

This would be a significant step with far-reaching consequences for the entire Northern European gambling market. Many European countries have already adopted a multi-licensing system to meet citizens' desire for broader choice and simultaneously improve player protection.

Numbers and facts

Jari Vähänen, Co-Founder & Partner at The Finnish Gambling Consultants, expressed a clear view on future developments. He is "almost certain" that Finland's gambling legislation will be revisited soon. This assessment is based on long-term observations of the Finnish market and international trends.

"It is almost certain that Finland's gambling legislation will be revisited soon." - Jari Vähänen, Co-Founder & Partner at The Finnish Gambling Consultants

Vähänen points to the increasing pressure arising from the grey market and player preferences. Veikkaus' current monopoly faces strong competition from unlicensed international operators. Players in Finland are increasingly using foreign offerings, leading to a loss of government control over player protection and tax revenues. The introduction of a licensing system could remedy this situation.

Background

The Finnish gambling model, featuring a single state-owned operator, Veikkaus, is a relic of bygone eras. Many other EU states have already transitioned to a regulated licensing system for private operators. Examples include Sweden, Denmark, and Germany. Under such systems, licenses are granted to private companies, which are then allowed to offer their gambling services under strict state regulations. This fosters competition, expands the gaming offerings for consumers, and simultaneously allows for better control and taxation of the industry.

The arguments for revision are diverse. Beyond the desire for more choice for players and curbing the black market, it also concerns increasing state revenue. Licensing private providers would allow the Finnish state to generate additional funds through license fees and taxes, which currently bypass the treasury. Furthermore, player protection could be improved through modern, EU-compliant regulations.

Why it matters for German players

For German players, these developments in Finland have no immediate impact on the existing legal situation. In Germany, gambling has been comprehensively regulated since the Interstate Treaty on Gambling 2021 (GlüStV 2021) came into force. The Joint Gambling Authority of the Federal States (GGL) issues licenses for online gambling and sports betting. As a player, you should only play with providers who have such a German license. These casinos can be found on the GGL's so-called Whitelist.

The GlüStV 2021 has established strict rules designed to protect players. These include a monthly deposit limit of 1,000 euros, which is monitored by the central self-exclusion system LUGAS. There is also a wagering limit of 1 euro per spin on online slot machines and a ban on the autoplay function. These measures are intended to promote responsible gaming and prevent gambling addiction. These regulations are far stricter than in many other European countries, even those with liberal licensing systems. While Finland's potential changes indicate a European trend towards regulation, Germany has already taken its own distinct path.

What it means for GGL-licensed casinos

For casinos licensed by the GGL in Germany, the development in Finland initially means no change to their business practices. They already operate under a strict licensing model and are bound by German laws. In the long term, however, an opening of the Finnish market could create new business opportunities. If Finland were to introduce a multi-licensing system, German or internationally operating companies with German licenses could also apply for licenses there and expand their business. This would stimulate overall competition in the industry and could contribute to further professionalization of the market. At the same time, it shows that the trend in Europe is clearly towards regulated markets, moving away from uncontrolled monopolies or even grey areas.