Finnish Gambling Market: The Role of Government-Owned Veikkaus Oy and Emerging Actors

The Finnish gambling sector is on the brink of transformative changes. These shifts are driven largely by policy changes aimed at balancing control, competition, and consumer protection. Here’s an overview of the evolving landscape, with a close look at the state-owned Veikkaus Oy and the introduction of a new licensing system.

Background and Current Monopolistic System

Veikkaus Oy has long held a monopoly on gambling in Finland, providing a range of betting, lottery, and casino games under a single-entity model. However, a significant update in the Finnish gambling framework is scheduled over the next few years, partially opening up the industry to international operators. The decision to introduce a licensing system aligns with the government’s goal to curb unregulated gambling and direct more revenue within the country.

Shift to a Licensing Model and the Future of Veikkaus

From early 2026, international gambling operators will have the opportunity to apply for licenses, with activities expected to commence in 2027. This new system means Veikkaus will retain exclusive rights over physical betting terminals and lotteries, while foreign operators will enter the digital casino and sports betting markets under strict regulatory oversight.

Competition and Regulations in Advertising

The new licensing model also brings adjustments in marketing regulations to address public concern over problem gambling. Veikkaus and new license-holders will have to abide by specific marketing rules:

  • No Direct Promotion to Minors: Advertisements targeting young audiences or those in vulnerable situations are prohibited.
  • Limited Sponsorship in Sports: Although Veikkaus and other operators can engage in sports sponsorship, stricter guidelines prevent advertising at events with minor participation.
  • Controlled Social Media Presence: Gambling advertising on social media will be confined to company-operated channels, limiting brand interactions with consumers.

Economic Impact and Benefits for Finnish Sports

An additional benefit of this policy overhaul is its potential economic boost to Finnish sports through increased sponsorship and marketing flexibility. Although previous drafts imposed rigid restrictions on sports sponsorship, the recent updates have relaxed these, particularly benefiting Finnish sports organizations reliant on sponsorship revenue.

Control and Oversight

Despite the entry of foreign operators, the Finnish government retains authority over gambling regulations, aiming to prevent excessive advertising and protect consumers. A License and Supervision Agency will replace the Police Administration’s role as the primary oversight body from 2027 onward, ensuring compliance and responsible gaming practices.

Outlook and Potential Challenges

While this shift to a dual model (monopoly and open market) may seem complex, it mirrors approaches adopted in countries like Denmark and Sweden, which have successfully managed increased revenues while minimizing gambling-related harm. This system promises to provide Finland with a balanced approach to gaming regulation, albeit with challenges in monitoring advertising and ensuring that international operators uphold responsible practices.