Finland formally ends state gambling monopoly under new law

Finland has taken a major step in modernising its gambling regulatory framework with the formal approval and ratification of a new Gambling Act by President Alexander Stubb. The legislation, which completes years of legal reform and parliamentary debate, will transform the nation’s gambling landscape by ending the state monopoly model and opening the online betting and casino market to licensed private operators from March 2026 onward. This legislative overhaul aligns Finland’s regulatory regime with many other European jurisdictions that operate competitive, licensed online gambling markets.

Background to the reform and legislative process

Finland’s gambling market has long been dominated by a state-owned monopoly operator. Under the old regime, Veikkaus Oy maintained exclusive rights over nearly all forms of gambling including lotteries, sports betting, online casino games and physical slot machines. This monopoly structure was justified on the basis of preventing gambling harm and ensuring channelisation of gambling activity into regulated frameworks. Over time, however, unlicensed foreign operators increasingly attracted Finnish players, eroding the effectiveness of strict monopoly controls and diverting significant amounts of gambling revenue outside Finland’s regulatory and tax systems.

A government proposal to modernise this system was first introduced and debated publicly as part of a broader policy response to these developments. The Ministry of the Interior oversaw preparation of the draft bill which was presented to Parliament in early 2025. The bill underwent extensive discussion, including scrutiny by the Administrative Committee and eventually passed Parliament by a significant majority. While some opposition proposals aimed at stricter player protection measures, increased gambling age and tighter marketing restrictions were raised during the committee process, these were ultimately rejected. The parliamentary vote reflected broad political consensus in favour of opening the market to competition under a regulated licensing framework.

President’s signature ushers in new regulatory era

On 16 January 2026, President Alexander Stubb signed the new Gambling Act into law. His approval triggered the implementation timetable and marked the formal end to the legislative phase of reform. With the president’s signature, the law is now set to take effect in phases over the coming years. The structured timetable is designed to give both regulators and industry participants time to prepare for the transition from a state-controlled monopoly to a licensed competitive market.

Timeline for implementation and market launch

Under the terms of the new Gambling Act, the first significant milestone is the opening of the licensing application window on 1 March 2026. From that date, both domestic and international gambling operators will be able to submit applications to offer a range of online gambling services in Finland, including online casino games, sports betting and other types of interactive wagering. The National Police Board will initially oversee licence applications and related regulatory functions during this interim period.

A second key date is 1 July 2027, when the new competitive online gambling market is scheduled to go live. On this date, the newly established Finnish Supervisory Agency will assume full responsibility for licensing, compliance monitoring and enforcement. This independent regulatory body is intended to provide consistent oversight and align Finland’s market with regulatory standards seen in other European countries.

From 1 July 2028, operators will be required to use only gambling software supplied by providers that hold a valid Finnish software licence. This requirement is intended to ensure quality control, technical compliance and enhanced regulatory monitoring across the entire online gambling ecosystem.

Structure of the competitive licensing system

The new Act creates a dual licensing structure to govern different segments of the gambling market. Exclusive licences remain in place for select products that will continue to be managed under a monopoly framework by Veikkaus or its affiliate. These include lotteries scratch cards and certain land-based casino services. At the same time, general gambling licences will be available to operators wishing to provide online casino games, sports betting, online slots, online bingo and similar interactive offerings. All operators holding gambling licences will be subject to regulatory compliance requirements and taxation.

In addition to operator licences, a separate category of gambling software licence has been established for companies that develop and supply gaming software. These software licences will also be time limited and require compliance with Finnish regulatory standards. The mandate that licensed operators can only use software from licensed suppliers is intended to strengthen oversight of gaming platforms and tackle technical risks related to fairness, security and money laundering.

Veikkaus’ evolving role under the new regime

While Veikkaus will no longer enjoy an exclusive position in the online casino and sports betting segments after June 2027, the company will continue to hold monopoly rights over lotteries and physical gaming machines. The company will also have the opportunity to compete openly in the newly liberalised online market alongside private operators. In preparation for this transition, Veikkaus has been reorganising parts of its operations and entering partnerships aimed at establishing competitive online platforms.

Marketing rules and player protection

The Gambling Act introduces comprehensive rules governing how licensed operators may advertise and engage with consumers. While marketing is permitted through television, radio, newspapers and an operator’s own website or social media channels, strict restrictions are placed on interactive direct marketing. Influencer marketing and telephone marketing are explicitly banned. Advertising must not target minors and may not depict individuals under the age of 18. Licensed operators are also prohibited from sponsoring events or competitions aimed at individuals under 18. All marketing materials must clearly display the minimum age requirement and provide information on responsible gambling tools and support services.

Player protection measures under the new regime include mandatory identity verification for all gambling activity to help prevent underage access and support secure account creation. The Act also allows for regulatory measures that could impose limits on deposit amounts, speed of play and other indicators associated with player harm. Government decree mechanisms may be used to implement additional safeguards such as daily or monthly loss limits. These tools are aimed at balancing market liberalisation with responsible gambling practices.

Regulatory powers and enforcement

The Finnish Supervisory Agency will be empowered to enforce compliance with the Gambling Act. If a licence holder breaches the regulatory framework, the agency may require the cessation of operations, impose fines or administrative penalties and in serious cases revoke a licence entirely. These enforcement powers aim to uphold the integrity of the market, protect consumer interests and maintain public confidence in regulated gambling.

The transition to an independent supervisory body is also expected to enhance Finland’s regulatory capabilities in areas such as anti-money laundering and anti-terrorism financing by centralising oversight and aligning domestic practices with broader European standards.

Economic and social implications of the reform

The shift to a licensed competitive market is anticipated to have broad economic implications for Finland. Licensed operators will contribute to state revenues through taxes, fees and compliance charges. Estimates suggest that the regulated market could generate significant tax income over time as online gambling activity migrates from unregulated foreign platforms to Finnish regulated services. Increased tax revenue may support public programmes and fund responsible gambling initiatives.

From a social perspective, the reform represents a compromise between opening the market to competition and preserving strong safeguards against gambling harm. Regulatory provisions designed to prevent the exploitation of vulnerable consumers, coupled with identity verification systems and mandatory player protection tools, are intended to uphold consumer welfare.

What lies ahead for Finland’s gambling industry

The implementation of the Gambling Act signals a new era for Finland’s gambling sector. As the licensing window opens in March 2026, companies will begin positioning themselves to enter one of Europe’s most significant newly regulated markets. The phased introduction gives operators, regulators and stakeholders time to adapt to a fundamentally different market structure.

The transition from monopoly to licensed competition is expected to reshape the way gambling products are offered, consumed and regulated in Finland. It is likely to increase consumer choice and offer new opportunities for innovation and investment while reaffirming the government’s commitment to protecting players and sustaining a responsible gambling environment.

Conclusion

The approval of Finland’s new Gambling Act marks a historic turning point for the country’s gambling sector, balancing the introduction of market competition with a strong commitment to player protection and responsible gambling. By ending the longstanding state monopoly and creating a structured licensing framework, Finland is positioning itself as a progressive regulator in the European gambling landscape. The phased implementation ensures that both operators and regulators have sufficient time to adapt to the new market dynamics, while stringent marketing rules, mandatory identity verification and regulated software use safeguard consumers from potential harm.

For Veikkaus, the reform presents both challenges and opportunities. While its exclusive hold over online casino and sports betting will end, the company is well-placed to leverage its existing infrastructure and experience to compete effectively in the open market. At the same time, private and international operators gain the opportunity to enter a regulated, transparent market with clear rules and strong oversight, fostering innovation, technological advancement and economic growth.

From a societal perspective, the Act reflects Finland’s commitment to responsible gambling and harm prevention, ensuring that liberalisation does not come at the cost of consumer safety. By combining modern regulation with effective supervision and accountability mechanisms, the government aims to channel gambling activity into licensed frameworks, maximise state revenues and provide a safer environment for players.

Ultimately, the new Gambling Act represents a carefully calibrated reform that modernises Finland’s gambling landscape while upholding principles of fairness, transparency and public welfare. It sets a benchmark for how countries can open their markets to competition responsibly, demonstrating that economic opportunity and consumer protection can coexist in a balanced and sustainable regulatory framework.

FAQs

What is the new Gambling Act in Finland about?
The new Gambling Act reforms the regulatory framework by ending the long-standing state gambling monopoly and introducing a competitive licensing system for online gambling.

When does the licensing application window open?
Operators can begin submitting licence applications from 1 March 2026 under the provisions of the new law.

When will the competitive online gambling market launch?
The competitive market is scheduled to launch on 1 July 2027 with full regulatory oversight by the Finnish Supervisory Agency.

Will Veikkaus still operate after the reform?
Yes. Veikkaus will retain exclusive rights for lotteries, scratch cards and physical gaming machines but will compete in online gambling segments.

What types of licences are available under the new system?
There are exclusive licences for monopoly products, gambling licences for online gambling operators and software licences for gaming software suppliers.

Are there marketing restrictions for licensed operators?
Yes. Operators may advertise within strict limits that prevent targeting minors and ban influencer and telephone marketing.

Is the minimum gambling age changing?
No. The minimum gambling age remains 18 under the new legislation.

What player protection measures are included in the reform?
Mandatory identity verification, deposit limits and other regulatory tools aimed at reducing gambling harm are part of the new framework.

Who oversees compliance with the Gambling Act?
The Finnish Supervisory Agency will oversee compliance, licensing and enforcement from 1 July 2027.

Will foreign companies be able to operate in Finland?
Yes. International operators can apply for licences and operate in the Finnish market once they meet regulatory requirements.

What happens if a licence holder violates the law?
The regulatory authority may stop operations, impose penalties or revoke the licence in cases of serious non-compliance.