Finland to introduce commercial licensed system for online gambling by 2026
Monopoly system due to end as Nordic market follows the majority of Europe with multi-licence regime
Finland will be switching to an online licensed system before 2026, though it could cost them over €200m according to analysts.
Currently operating under a monopoly system with government-owned betting firm Veikkaus, the expected change comes after years of debate.
In January, Finland’s Ministry of Interior set up a four-person team to research a multi-licence gambling regime, with those findings being relayed in April.
After studying gambling legislation in Sweden, Norway, Denmark, France and the Netherlands, the belief is that the new gambling system will not only bring a higher channelisation rate and thus a more effective prevention of gambling problems, but also stop the financial loss to offshore sites that accept Finish players – which is currently estimated to be between €500 and €550.
Speaking in April, the Ministry of the Interior explained: “In the licence system, it would probably be possible to achieve a higher degree of channelling in online gambling than the current situation. Achieving a high degree of channelisation is, however, ultimately dependent on the detailed regulation of the operation of the licence system and the taxation of gambling revenues.
The multi-licence system will apply to both online casino and online sports betting, with the Finnish government placing emphasis on the importance to put player protections in place and ensure marketing is done is a socially responsible way.
Regulus Partners have projected the impending switch could result in a 5% revenue hit and a 3% cost increase from new compliance measures for Veikkaus.
The analyst firm also noted that cash flow contributions from dotcom operators could fall some 75% from €280m to €67m. Regulus said: “Finnish regulation could therefore be very painful for the exposed dotcom sector and less than three years away.”
Veikkaus, which has seen its market share slip to just 50% in recent years, is also pushing for minimum requirements for new licensees, as detailed by Regulus.
These include both maximum and compulsory loss limits for online casinos, €500 per day, €2,000 per month, as well as compulsory deposit limits.
Additionally, player time reminders of 60 minutes for all products and 15 minutes for slots, a three-year gambling history for players and increased player communication linked to safer gambling will all be put forward.