Finland ends Veikkaus monopoly to allow licensed online gaming

Finland is preparing for a significant shift in its gambling landscape as parliament overwhelmingly approved legislation to end the state monopoly over gambling. The Finnish Gambling Act received 158 votes in favour and only eight against during its second reading in the Eduskunta, marking a historic turning point for the country’s gambling sector.

The reform introduces a multi-licence framework, replacing Veikkaus’s exclusive control over online gambling, while retaining a monopoly over land-based gaming and the national lottery. This change aims to modernise the Finnish gambling system, improve regulation and bring a greater proportion of gambling under the official system.

Legislative background and approval process

The bill was introduced to the Eduskunta in March and has moved through parliament with relative ease. It proposes a split of Veikkaus into two entities: one will continue managing physical gambling operations and Finland’s National Lottery, while the other will compete with commercial operators in online gaming and betting markets.

Opposition parties had suggested several amendments, including raising the minimum gambling age from 18 to 20, restricting advertising and bonuses and increasing the tax rate from 22 per cent to 25.5 per cent of gross gaming revenue. These proposals were largely rejected, leaving the bill in a form close to its original draft.

During the second reading, Juha Hänninen of the National Coalition Party emphasized that the Administration Committee had “made the necessary additions to the proposal.” Hänninen highlighted that Veikkaus’s monopoly “no longer reflects reality” as a significant share of Finnish gambling occurs online through foreign operators who evade local rules and taxes.

He added: “The implementation of gambling will now be clearly linked to a system subject to licensing. Gaming companies will be required to have a license and gambling will require identification.”

Timeline for market opening and licensing

The official launch of competitive regulated online gambling is now expected on July 1, 2027, six months later than an initially targeted date of January 1. Licence applications for operators will open on March 1, 2026. A new Licensing and Supervision Agency will replace the National Police Board as Finland’s primary gambling regulator.

The creation of a formal licensing system is intended to increase compliance, protect consumers and direct gambling activity to regulated channels. This regulatory shift reflects a broader trend in Europe, where countries are moving away from state monopolies and toward controlled multi-operator markets.

Industry response and preparation

Veikkaus has largely welcomed the reforms, noting that it began preparing over a year ago for the shift. Staffing and operational adjustments have already been made to facilitate the transition. Deputy CEO Velipekka Nummikoski stated:

“We have been waiting for a model that improves the possibilities of channeling gambling to a licensed offering. Veikkaus has not had a real monopoly on gambling in Finland for a long time. According to various estimates, up to €600-900m are gambled outside the official system annually.”

Industry experts have expressed cautious optimism about the reforms. Finnplay, a Helsinki-based compliance technology firm, described the legislation as “the beginning of a major transformation.” Jari Vähänen of Finnish Gambling Consultants Oy noted the market’s potential, highlighting that “Finns spend more money on gambling per capita than most countries.” Vähänen emphasized that the legislation covers a broad range of products accessible both online and via retail channels, creating significant marketing opportunities in media and sponsorships.

Antti Koivula, Chief Compliance Officer at Hippos ATG—a joint venture between Sweden’s ATG and Finnish trotting body Suomen Hippos—remarked on LinkedIn about the legislation’s approval:

“After years and years of monopoly reign, Finland finally steps into a new modern era. The law is not perfect, but it is a long awaited and meaningful step forward. Personally, I see this as a greatly positive turning point for Finland and a strong foundation to build on going forward.”

Hopes for improved channelisation

A key goal of the reforms is to improve channelisation, directing gambling activity toward licensed operators. Current estimates suggest that a substantial portion of Finnish gambling occurs outside regulated channels, undermining both tax revenues and responsible gambling measures.

The government has set a channelisation target of 90 per cent, which Veikkaus aims to achieve by leveraging its position in the new multi-licence market. By integrating licensing requirements and mandatory identification, authorities intend to create a safer gambling environment while reducing unregulated activity.

Opposition concerns about advertising and social impact

While political support for the reform is broad, some opposition figures remain concerned, particularly regarding advertising. Aino-Kaisa Pekonen of the Left Alliance, a former minister for health and social affairs, stated:

“Advertising normalises and makes gambling commonplace. It also instills a positive attitude towards gambling and encourages gambling.” She warned that advertising could increase gambling and risk-taking among vulnerable individuals, making abstinence more difficult and causing relapses.

Concerns over advertising are not unique to Finland. Similar debates emerged in the Netherlands after regulated online gambling was introduced in 2021. A surge in gambling promotions led to public criticism and legislative action, resulting in restrictions on non-targeted ads and bans on sports sponsorships involving gambling brands.

Although attempts by The Greens and Left Alliance to include advertising restrictions in the current legislation were unsuccessful, these parties have indicated that they may revisit the issue in future legislative sessions.

Potential economic and social impact

The opening of Finland’s online gambling market is expected to have significant economic implications. By allowing multiple licensed operators, the reforms could attract international companies, increase competition and expand the variety of products available to Finnish consumers.

From a social perspective, authorities stress that licensing and supervision are intended to promote responsible gambling practices and reduce harm. Mandatory identification and regulated advertising are designed to protect vulnerable populations, while the Licensing and Supervision Agency will monitor compliance and enforce legal requirements.

Experts caution, however, that achieving these outcomes will require careful implementation, ongoing oversight and effective public communication. Failure to balance economic opportunity with consumer protection could undermine the goals of the reform.

A cautious but transformative step

Overall, the Finnish gambling reforms represent a careful attempt to modernize a long-standing monopoly while introducing competition, compliance and safeguards. While the legislation may not address every concern, particularly in advertising and taxation, it lays the groundwork for a more regulated, competitive and responsible gambling market.

Veikkaus’s transition, the establishment of a licensing framework and the role of the new supervision agency all signal Finland’s commitment to aligning with international best practices. For consumers, operators and regulators alike, the reforms mark the beginning of a new era in Finnish gambling.

Conclusion

The approval of Finland’s Gambling Act marks a decisive shift in the nation’s regulatory landscape, moving away from a long-standing monopoly toward a competitive, licensed market that balances economic opportunity with social responsibility. By introducing a multi-licence framework, the reforms aim to channel gambling into regulated channels, ensuring compliance, transparency and consumer protection while opening the market to domestic and international operators.

While challenges remain, particularly in areas such as advertising, responsible gambling enforcement and public awareness, the legislation provides a clear legal foundation for growth and innovation. The establishment of the Licensing and Supervision Agency, mandatory licensing requirements and identification measures underscores the Finnish government’s commitment to safeguarding players and maintaining public trust in the gambling sector.

For Veikkaus and other stakeholders, the reforms present both an opportunity and a responsibility: to adapt operations, leverage new market dynamics and contribute to a regulated, safe and transparent gambling environment. For consumers, the changes promise greater choice, security and clarity in accessing gaming products.

Ultimately, Finland’s transition reflects a broader European trend of modernising gambling markets while maintaining oversight, accountability and protection for vulnerable populations. As the market opens in July 2027, the country will embark on a carefully structured, yet transformative journey that seeks to harmonise commercial growth, legal compliance and social responsibility in a rapidly evolving digital gaming environment.

Frequently asked questions

When will Finland open its online gambling market to licensed operators?
The Finnish online gambling market is scheduled to open on July 1, 2027.

What changes will Veikkaus undergo as part of the reforms?
Veikkaus will be split into two entities: one for land-based gaming and the national lottery and one to compete with licensed online operators.

Who will regulate gambling in Finland under the new legislation?
The Licensing and Supervision Agency will replace the National Police Board as the main regulator.

When will licence applications open for online gambling operators in Finland?
Applications for licences will open on March 1, 2026.

Why were opposition amendments such as raising the minimum gambling age rejected?
Amendments including age increase, advertising restrictions and higher tax rates were rejected to maintain the original multi-licence framework.

What is the purpose of channelisation in the Finnish gambling reforms?
Channelisation aims to direct gambling activity toward licensed operators and reduce unregulated gambling.

How will the new legislation impact gambling advertising in Finland?
While advertising restrictions were not included, the issue may be revisited in future legislative sessions.

What is the estimated annual value of unregulated gambling in Finland?
Estimates suggest between €600-900 million are gambled outside the official system annually.

Will international gambling operators be allowed to enter the Finnish market?
Yes, licensed international operators will be able to compete in the regulated online gambling market.

What are the expected social benefits of the reforms?
The reforms aim to promote responsible gambling, protect vulnerable populations and improve compliance and consumer safety.