Finland dual-licence gambling framework set for 2027 launch

Finland’s long-anticipated transition from a state-controlled gambling monopoly to a regulated, competitive licensing environment has taken another significant step forward. With legislative proposal HE 16/2025 now detailed by legal and industry analysts, the country is preparing for one of the most comprehensive structural reforms in its gambling sector in decades.

The new legislation formalises a dual-licence system for B2C gambling operators and B2B software suppliers, with the model scheduled to take effect on 1 January 2027. The transition is expected to reshape Finland’s digital gambling landscape, introduce clear regulatory obligations for all market participants, and establish a modern compliance framework aligned with wider European competition principles.

This expanded analysis examines the key pillars of the reform, the expected market impact, the restructuring of state-owned Veikkaus, and the broader regulatory objectives guiding Finland’s policy direction.

Legislative background and policy objectives

Finland’s move to a competitive licensing model is rooted in a policy commitment to reduce unregulated offshore gambling, strengthen consumer protection, and ensure that gambling-related revenue is generated through transparent and accountable channels.

For years, Finland maintained one of Europe’s last remaining gambling monopolies, with Veikkaus operating as the sole licensed provider of most forms of gambling. However, digitalisation and cross-border online betting created conditions in which offshore operators could reach Finnish consumers without local licences, reducing channelisation and weakening consumer safeguards.

Regulatory experts have noted that the government’s strategy seeks to balance market openness with strict oversight, prioritising responsible gambling interventions, software integrity, and anti-money-laundering standards. The dual-licence structure is positioned as a solution that offers business opportunities while ensuring public-interest protections remain central to the system.

Introduction of a dual-licence structure

B2C gambling game licences

Under the proposed framework, all online betting and online casino operators will be required to obtain a B2C gambling game licence. Licences will be valid for five years and subject to a tax rate of 22% of gross gaming revenue.

Operators applying for B2C licences will need to demonstrate:

• A robust compliance framework
• Effective responsible gambling tools
• Transparent policies for customer verification
• Clear anti-money-laundering controls
• Secure data processing procedures

Applications are expected to open in early 2026, allowing prospective operators ample preparation time to adapt their platforms and legal structures to Finnish requirements.

The licensing process, as described by analysts, is designed to be rigorous but predictable, providing clarity to international operators seeking entry into the newly regulated Finnish market.

B2B game-software licences

A central component of the reform is its mandatory B2B licensing regime. Software providers delivering gaming systems, platforms, or casino content to Finnish-licensed B2C operators will need to obtain a game-software licence.

Applications for B2B licences will open in early 2027, with operators required to be fully compliant from 1 January 2028. This phased approach is intended to minimise disruption during the early stages of market opening.

Under the new system, all licensed B2C operators may only use software from approved B2B suppliers. This requirement is designed to ensure:

• System integrity
• Supply-chain transparency
• Consistent technical standards
• Proper auditing and traceability

Legal commentators suggest that this structure mirrors other regulated European markets and introduces a new level of oversight over the technological backbone of online gambling operations.

Restructuring of Veikkaus into separate entities

Compliance with EU competition rules

One of the most significant elements of the reform is the restructuring of Veikkaus. To ensure compliance with EU competition requirements, the state-owned operator will be divided into two distinct legal entities, each with clearly defined responsibilities.

Retained monopoly division

The first entity will retain exclusive rights over:

• Lottery products
• Physical slot machines
• Land-based casinos

This division will operate under a renewed 10-year monopoly licence, reflecting the state's public-interest mandate to regulate high-risk, high-addiction gambling channels in a tightly controlled environment.

Competitive division for online operations

The second entity will operate as a competitive commercial operator, entering the new online market under the same regulatory conditions applied to private B2C companies.

Its online betting and casino operations will no longer benefit from exclusive rights. Instead, they will compete directly with licensed international operators. Analysts believe this transformation could lead to strategic partnerships, digital investment, and operational restructuring within Veikkaus as it adapts to a competitive environment.

Market supervision and enforcement

Establishment of a new supervisory authority

Oversight of the reformed market will be consolidated under a new supervisory authority operating within the upcoming Permit and Supervision Agency. This authority will be financed through industry supervision fees, ensuring an independent and sustainable regulatory function.

Its responsibilities will include:

• Monitoring operator compliance
• Enforcing licence conditions
• Investigating potential breaches
• Approving B2B suppliers
• Overseeing software certification
• Addressing unregulated activity

Analysts emphasise that the authority’s comprehensive oversight mandate will be essential in maintaining market integrity and establishing Finland as a predictable, transparent jurisdiction.

Measures to reduce unregulated offshore activity

The government aims to significantly reduce offshore gambling activity by:

• Introducing payment-blocking measures
• Strengthening marketing restrictions
• Enhancing enforcement mechanisms
• Providing a clear, achievable path to licensing

Legal observers note that offshore operators have historically taken advantage of regulatory ambiguity. By establishing a regulated pathway supported by enforceable sanctions for non-compliance, Finland seeks to close the gaps previously exploited in the market.

Industry context and prior scrutiny of Veikkaus

The reform follows historical scrutiny of Veikkaus’ market conduct in the period leading up to the end of its monopoly. This included public discussions about its financial performance and market behaviour.

During that period, certain industry participants, including Swedish operator ATG, raised concerns regarding potential anti-competitive practices. These concerns were part of a broader debate around the need for structural reform and clearer separation of Veikkaus’ responsibilities.

Earlier in 2025, Veikkaus also reported a decline in financial performance, which industry analysts noted as a possible indicator of wider market shifts and the increasing impact of offshore competition.

The upcoming restructuring is intended to address these historical issues by ensuring transparency, compliance with European competition rules, and a level playing field for all licensed operators.

Expected impact on the Finnish gambling landscape

Improved consumer protection

With clearer licensing obligations and increased oversight, Finland aims to strengthen its consumer protection framework. Licensed operators will be required to offer:

• Deposit limits
• Reality checks
• Self-exclusion functionality
• Accessible responsible gambling tools

These requirements represent a shift toward safer online gambling environments and higher accountability.

Higher channelisation rates

Channelisation—the proportion of customers using regulated operators—is expected to increase significantly under the dual-licence model. By providing a lawful, competitive, and attractive alternative, the government intends to draw players away from unregulated offshore sites.

Increased investment and innovation

Analysts predict that market opening will attract significant investment from global B2C operators and B2B suppliers. Finland’s regulated entry could also encourage innovation in:

• Software development
• Player-protection technologies
• Data-security solutions
• AI-based integrity systems
• A more competitive environment for operators

While competition is expected to intensify, the regulatory framework ensures that all operators will be subject to identical compliance obligations, reducing operational disparities and supporting fair competition.

Conclusion

Finland’s confirmation of a dual-licence gambling framework represents a fundamental shift toward a regulated, competitive, and technologically secure market model. By restructuring Veikkaus, introducing mandatory B2B licensing, and establishing a strong supervisory authority, Finland aims to balance commercial opportunity with responsible gambling safeguards.

The transition is expected to reshape the industry landscape, improve consumer protection, and ensure that future gambling activity operates within a controlled, transparent, and legally compliant environment. As the market moves toward its 2027 opening, operators and suppliers will begin preparing for one of Europe’s most closely observed regulatory evolutions.

FAQs

How will the new licensing model change Finland’s gambling market?
The new model introduces competition in online betting and casino services while retaining state control over lotteries and land-based gambling. It replaces the previous monopoly with a dual-licence system for operators and suppliers.

Who is eligible to apply for a B2C gambling licence?
Any operator that meets Finland’s regulatory and technical requirements may apply, including international companies seeking to enter the Finnish online market.

What is the tax rate for licensed operators?
Licensed B2C operators will be taxed at 22% of gross gaming revenue under the proposed framework.

When will licence applications open?
B2C licence applications are expected to open in early 2026, while B2B game-software licence applications will open in early 2027.

Why is a separate B2B licence required?
The B2B licence ensures that only approved and compliant software suppliers provide systems to licensed operators, strengthening integrity and security.

What will happen to Veikkaus under the new model?
Veikkaus will be divided into two legally separate entities: one maintaining monopoly rights for lotteries and land-based gambling, and another competing in the online market.

Will unregulated offshore gambling still be allowed?
No. The new framework introduces enforcement tools intended to limit offshore access and encourage players to use licensed operators.

What is the role of the new supervisory authority?
It will oversee licensing, compliance, enforcement, software approval, and responsible gambling requirements.

Why was reform considered necessary?
The previous monopoly model was increasingly challenged by offshore operators, technological change, and competition requirements under EU law.

How will consumers benefit from the new system?
Consumers will receive safer gambling protections, access to regulated operators, and improved safeguards related to privacy, security, and responsible gambling.