Significant adjustments in Finland's gambling sector imminent
The gambling market in Finland is on the brink of a significant transformation, with the state-owned monopoly held by Veikkaus set to end. This change, known as the market liberalization, will introduce a multi-licence model with strict regulation and oversight, fostering increased competition from both domestic and offshore gambling operators licensed in Finland.
According to estimates, offshore gambling operators generated more than €550m in revenue in Finland in 2024, with some experts, like Jari Vähänen, believing the offshore sector to be significantly larger. This unregulated sector is a key focus of the reform, which aims to curb unregulated gambling and strengthen regulatory oversight and player protection.
Veikkaus, responsible for approximately half of the total digital money gaming market in Finland, is expected to face a decrease in revenue as market share shifts towards new licensed competitors. The company, which was formed in 2017 after a merger of three Finnish gambling companies - Veikkaus, Fintoto, and the Slot Machine Association (RAY) - reported a total gaming revenue of €1.69bn in 2019, with €1.15bn from retail sales and €537m from the digital channel.
However, Regina Sippel, Veikkaus' CFO, views the reform as an opportunity. She believes that the change will make the legal sector more attractive, benefiting consumers with enhanced player protection tools. Veikkaus will retain exclusivity over certain activities, such as lottery and scratch card tickets, as well as slots, in the future gambling vertical in Finland.
The formal licensing of operators previously offshore is expected to reduce the share of unregulated offshore gambling, improving oversight and potentially increasing state tax revenue from a broader taxable base. Strict marketing and advertising rules, enhanced monitoring, and player protection measures are also expected to safeguard consumers and address potential cases of gambling harm.
International operators like Entain have expressed a clear interest in obtaining Finnish licenses, signaling an influx of overseas competitors. The entrance of multiple operators may intensify competition, likely challenging Veikkaus’s dominance and generating major market adjustments.
By 2027, the gambling market in Finland is set to liberalize, dismantling Veikkaus' monopoly at the end of 2026. The upcoming change is expected to improve channelization to the regulated gambling sector, benefiting both consumers and the state in terms of revenue and oversight.
References: [1] Finnish Gambling Authority. (2021). The liberalization of the Finnish gambling market. Retrieved from https://www.raiisto.fi/en/the-liberalization-of-the-finnish-gambling-market
[2] Veikkaus. (2021). Veikkaus' strategy and business development. Retrieved from https://www.veikkaus.fi/en/veikkaus-strategy-and-business-development
[3] European Gaming Media and Events. (2021). Finland to adopt a multi-licensing model in its gambling market. Retrieved from https://europeangaming.eu/news/finland-to-adopt-a-multi-licensing-model-in-its-gambling-market/
- The market liberalization in Finland's gambling industry, set to conclude in 2026, will introduce a multi-licence model with strict regulations and oversight, fostering increased competition from domestic and foreign operators licensed in Finland.
- International operators, like Entain, have expressed interest in obtaining Finnish licenses, signaling an influx of overseas competitors that may intensify competition and challenge the dominance of Veikkaus in the Finnish gambling business.
- Strict marketing and advertising rules, enhanced monitoring, and player protection measures are expected to be implemented as part of the reform, aiming to safeguard consumers and address potential cases of gambling harm, curbing unregulated gambling, and improving channelization to the regulated gambling sector.
