Finland is preparing for a major overhaul of its gambling market, transitioning from a state monopoly to a competitive licensing system by January 1, 2027. The proposed legislative framework, HE 16/2025, represents a significant step toward regulating both operators and suppliers within the gambling industry. This new framework will introduce a dual-licence system, dividing the market into two categories: operators offering gambling services and suppliers providing game software. These changes will shape the future of Finland's gambling environment and ensure greater compliance with European Union regulations.
New Licensing Structure: Operators and Suppliers
The core of the new system is the introduction of two types of licences: one for business-to-consumer (B2C) operators and another for business-to-business (B2B) software providers.
For operators, a Gambling Game Licence (rahapelitoimilupa) will be issued to those offering online betting and casino products, such as slots, table games, and bingo. These licences will last five years, with applications set to open in early 2026. Operators will be subject to a 22% tax on Gross Gaming Revenue (GGR), aligning with other European jurisdictions. This model will encourage greater competition, with the government seeking to modernise the gambling sector by moving away from the monopoly held by Veikkaus.
The second licence category, the Game Software Licence (peliohjelmistotoimilupa), is aimed at companies that manufacture, provide, or modify gambling software. Operators will be required to exclusively use software from licensed suppliers, a key feature of the new framework. Software suppliers will need to apply for their own licences, with the application window opening in early 2027. Full compliance with these regulations will be required by January 2028, introducing greater scrutiny in the supply chain for operators in the Finnish market.
Structural Separation of Veikkaus
To comply with EU competition laws, Finland’s state-owned gambling operator, Veikkaus Oy, will undergo a significant restructuring. The company will be split into two separate entities within the same group:
- The Monopoly Entity: This division will retain exclusive rights over the national lottery, physical slot machines, and land-based casinos for the next 10 years.
- The Competitive Entity: The second entity will compete directly in the newly opened online betting and casino markets. This entity will operate under the same rules as private operators, subject to the same 22% GGR tax rate and five-year licence duration.
This separation is designed to ensure that Veikkaus can operate in the competitive online sector without gaining an unfair advantage over private operators, maintaining a level playing field.
Regulatory Oversight and Industry Compliance
The new gambling system will be overseen by a dedicated Permit and Supervision Agency (Lupa- ja valvontavirasto). This body will be responsible for ensuring that both operators and software suppliers comply with the new regulations. The agency will be funded through fees collected from the industry, which will help sustain its operations without relying on state funding.
A crucial element of the new regulatory framework is the introduction of mandatory B2B supplier licensing, which aims to eliminate unregulated actors and strengthen the accountability of the Finnish gambling sector. Analysts have indicated that this change will make it much harder for offshore and unlicensed operators to enter the Finnish market, addressing longstanding concerns over illegal gambling activities.
Impact on Finland’s Gambling Market
The introduction of the dual-licence model is expected to bring significant changes to the Finnish gambling landscape. It will open up the online gambling market to more competition, moving away from Veikkaus’ monopoly and allowing new entrants to operate in the country. The move is seen as part of Finland’s commitment to aligning its gambling sector with EU standards and creating a more transparent, competitive environment.
While the changes may benefit consumers by offering more choices and improving regulatory oversight, the impact on existing operators and suppliers could be significant. Companies looking to enter the Finnish market will need to ensure compliance with the new licensing requirements, particularly the use of licensed software. This may involve shifting strategies, with companies needing to partner with approved suppliers to continue operating.
A Shift Towards Transparency and Fairness
The transition to a dual-licence system reflects a growing trend in Europe to bring greater transparency and fairness to gambling markets. As more countries move away from state monopolies and towards competitive licensing frameworks, Finland’s approach will serve as a model for other jurisdictions looking to modernise their gambling industries. By 2027, Finland’s market will likely see a more dynamic and diverse gambling environment, with stronger regulatory controls ensuring a safer, more accountable industry.
For now, stakeholders in the Finnish gambling market will be closely watching the implementation of the new laws and how they will affect both existing operators and new entrants. As applications for licences open in 2026 and 2027, companies will need to prepare for a competitive and highly regulated environment.
Source:
"Finland confirms dual-licence framework for 2027 market opening", gamblinginsider.com, December 3 2025
