Finland Submits Business-Friendly Gambling Law Reforms

From Monopoly to Licensed Market

November 1 Finland presented the 357 page gambling law proposal to the European Commission (EC). Industry likes the draft more than the July version. EC and other EU member states will review for 3 months.

The new law will open up the Finnish gambling market by moving away from the current monopoly. Ministry of the Interior leading the legislative process said the main goals are to “reduce gambling disadvantages and increase channelisation” of gambling in Finland. The law will balance market liberalisation with harm minimisation.

Changes in the Draft

• Easier Marketing: Operators can now do offline brand marketing. The blanket ban on bonuses has been removed and bonuses can be given to existing customers under certain conditions.
• Horse Racing Licenses: Horse race betting will move from exclusive rights to licensing model, opening up this popular betting form to competition.
• Faster Implementation: The implementation timeline of the new licensing system has been accelerated. Licensed operators could start operations as early as July 1, 2026, 6 months earlier than planned.

Industry Views

Antti Koivula, Finnish gaming law expert, said: “Overall, the updated draft law is significantly more business-friendly compared to the initial draft released in July.” He highlighted the eased marketing restrictions and the accelerated timeline as key advantages.

However, Koivula noted an increase in the Gross Gaming Revenue (GGR)-based annual supervision fee, which could impose an additional tax burden exceeding 2% at certain GGR levels. “The tax rate remains at 22% of GGR, but the annual supervision fee has been notably increased,” he explained.

Morten Ronde, a partner at law firm Nordic Gambling, observed that Finland’s approach mirrors regulatory frameworks in Denmark and Sweden. “Finland’s approach leans on well-established Nordic models, making it familiar to operators active in these markets,” he stated.

Ronde welcomed the moderate bonus allowances and reasonable tax rates but acknowledged that the term “moderate” needs clearer definition. He added that the draft law shows “significant improvements, hinting at the potential for a practical and well-regulated gambling market.”

Affiliate and Influencer Marketing Concerns

Despite the overall positive feedback there are concerns about affiliate and influencer marketing:

• Influencer Marketing: Pasi Koskela, Finnish iGaming consultant, said the proposal prohibits Veikkaus Oy, the state-owned gambling operator, from using influencer marketing. Public figures cannot share Veikkaus content on their personal platforms, even without compensation, but can appear in official ads distributed by Veikkaus.
• Affiliate Marketing: The draft law bans affiliate marketing aimed at directing web traffic to gambling sites. Koskela questioned the effectiveness of such restrictions, suggesting that traditional advertising channels might inadvertently expose underage individuals to gambling promotions more than affiliate sites.

Koskela told NEXT.io: “People won’t suddenly stop googling ‘online casinos’ when the new law takes effect. This means the traffic that affiliates have been directing to somewhat reputable and regulated casinos will now go elsewhere. This could lead to unregulated casinos offering rigged games, as there are no regulatory bodies enforcing best practices or compliance.”

Secondary Legislation Still to Come

While the draft has clarified some things, many details are still to be defined in secondary legislation. Koivula said some things are still open and will cause problems during implementation.

The Finnish draft is a big step towards more open and competitive market, following the Nordic model. While good for business the draft has some marketing restrictions and will impact regulated vs unregulated. The European Commission review and secondary legislation will be key to the final form of the law and how it will balance liberalization with consumer protection.