Finland publishes bill to end state monopoly

Kateryna Skrypnyk July 3, 2024

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Finland publishes bill to end state monopoly

Finland’s Ministry of the Interior has sent a long-awaited draft law on licensing of bookmakers, online slot machines and casinos to the government, proposing that licensees start working from the beginning of 2027, effectively ending industry state monopoly. According to the ministry’s statement on July 3, the new system will be introduced in stages, and the next step will be to submit a proposal to parliament at the spring session of 2025.

The Ministry has also opened a public consultation on the proposal. The deadline for submitting proposals is August 18.

Veikkaus will maintain a full monopoly until the end of 2026

Veikkaus’ current monopoly will last until the end of 2026, and operators will be allowed to apply for licenses in early 2026. The ministry had previously planned to launch the market in January 2026, but stakeholders have long feared that the start of issuing licenses could be delayed as a result of the broader political turmoil in Finland.

From 2026, Veikkaus will maintain a state monopoly on only some products, such as lottery games and scratch cards, and the Council of State of Finland, the executive branch and the country’s cabinet, will decide on the annual fee the company will pay for the exclusive license.

For Veikkaus operations that are not subject to the exclusive license, a separate company will be established within the same group. Finland will have the right to sell part of its stake in the company “if it is considered justified in the future in terms of developing the shareholder value of the state,” the ministry said in a statement.

Mandatory cooperation with licensed suppliers from 2028

According to the proposal, gambling software providers will also need a license, however, they will not be able to apply for one until the beginning of 2027. This means that operators will not be required to use only licensed providers until 2028. Vixio has reported that according to a Finnish legal advisor, the draft law as it stands makes it difficult for operators with past infringements to enter the market. Additionally, the legal advisor notes that the draft does not include a cooling-off period.

Finland does not prohibit advertising for licensees

Licensees will also be able to advertise, but “the amount, volume, visibility and frequency of marketing must be moderate and necessary in order to channel gambling demand into licensed gambling activities,” according to the Home Office. In turn, advertising of gambling with a high risk of harm from foreign operators will be prohibited. Physical ATMs and casino games, the ownership of which Finland reserves for Veikkaus, must not be advertised at all.

The regulator appoints LCA

The new Licensing and Control Agency (LCA), operating under the Ministry of Finance, will take over the supervision of gambling from the National Police Agency. The LCA will be able to issue fines, revoke licenses, conduct test purchases, monitor compliance with money laundering regulations, as well as block websites and prohibit payments to unlicensed operators. The law also proposes the creation of a new national system of self-exclusion.

Focus on Eastern Europe

Soon, the attention of the gaming world will turn to Budapest, with the SiGMA East Europe 2024 Summit being held from September 2-4 with the support of Soft2Bet.