Finnish Government Sets Gambling Reform Project in Motion

Veikkaus, the state-owned wagering organization of Finland, will no longer be the exclusive operator authorized to provide online gambling services to sports betting and gaming enthusiasts in Finland. The Ministry of the Interior of Finland is advancing a gambling reform initiative that will enable independent wagering operators to legally operate within the country by obtaining licenses.

A government study on the present monopoly status of the Finnish gaming industry assessed the efficacy of two potential strategies to combat illegal offshore gambling earlier this year. The initial one involved implementing more stringent measures, such as the prohibition of advertisements, the restriction of payments, and the barring of offshore websites, while maintaining the monopoly model. An alternative course of action entailed abandoning the monopoly system in favor of a licensing framework.

The latter would be more effective in discouraging Finnish gambling devotees from pursuing illegitimate gaming companies, according to the study. Legislators have initiated the official initiative to bring about a licensing system for independent operators, which the government announced would take effect shortly thereafter.

By 2026, the New Licensing Model will be implemented.
Officials of the Finnish government will draft legislative proposals that specify which forms of wagering will bc game app be regulated under the new law and the manner in which gaming companies will be subject to taxation. In addition, licensing fees will be specified and calculated. Additionally, the government will tackle concerns including problem wagering. Furthermore, arrangements have been made to form an intersectional working group and a steering committee. As per the Ministry of the Interior, the submission of a proposal is scheduled for the beginning of 2025, and the project is expected to conclude on December 31, 2025.

With the reform, the ministry intends to mitigate and explicitly prevent the potentially harmful effects of gambling, according to a ministry spokesperson. Additionally, it was noted that Finland has a comparatively low channelisation rate, which pertains to the proportion of wagers placed on legitimate gambling operations rather than illegal ones. This rate necessitates enhancement.

The Swedish channelisation rate was estimated to be around 77% this summer, a figure that was deemed to be relatively low. The government investigation reveals that the channelisation rate of Finland’s monopoly is fifty percent.

Veikkaus will persist in operation even after the licensing model is implemented.
A substantial transformation will occur within the wagering system in Finland as a result of the government initiative. It should be noted, nevertheless, that Veikkaus will continue to function until 2026. As an alternative, the organization will be divided into numerous wagering entities that will be categorized within the Veikkaus group.

Online gaming and remote sports betting appear to be the primary objectives of Finnish authorities regarding the monopoly system in the gaming sector. At present, there is widespread anticipation that Veikkaus will retain its monopolistic control over the nation’s lottery, and a similar presumption exists regarding the functioning of slot machines in physical gambling establishments.

However, the licensing model is expected to have adverse effects on the company, and measures have been taken to anticipate workforce reductions and the cessation of operations at Veikkaus land-based establishments. The operator made a statement in September regarding the potential elimination of approximately 240 positions. Furthermore, projections indicate that once licensing of independent operators commences, there will be between 40 and 50 retail gambling locations remaining, as opposed to the current 65. Despite this, Olli Sarekoski, the CEO of Veikkaus, did clarify that the potential changes are motivated by the company’s desire to become the “most successful gambling company” in the country and to remain competitive under the new system.