Finland ends monopoly era with new iGaming licensing regime
For decades, Finland stood apart from the rest of Europe in how it regulated online gambling. While most EU countries shifted towards competitive multi-licensing models, Finland clung to a state monopoly through Veikkaus Oy. But that chapter is coming to a close.
The launch of Finland’s new licensing regime in 2026 will align the country with the EU consensus on regulated, open-market gambling. Finland’s licensing overhaul marks a pivotal shift in the continent’s regulatory direction. A recent comment from Maarten Haijer, Secretary General of the European Gaming and Betting Association (EGBA), gives a respectful nod to Finland’s big regulatory shake-up:
“With Finland’s upcoming reforms, all EU member states will soon have adopted some form of multi-licensing – a significant milestone that validates our long-standing position that competitive, multi-licensed markets, not monopolies, are the best way to protect consumers and achieve policy goals.”
Veikkaus loses its grip
Finland’s gambling model began to crack under the weight of Veikkaus Oy’s exclusive control. With nearly half the market drifting offshore, regulators lost tax revenue and their grip on player protection. The cracks became impossible to ignore.
An estimated €520 to €590 million flowed to offshore gambling operators in 2021, accounting for 41 percent of Finland’s online market—a system built on a monopoly left almost half the field wide open.
By 2023, projections suggested that offshore gambling losses would reach around €550 million. When the money slips through the cracks, so do the rules. No tax. No protection and no control.
Finland’s gambling market is anticipated to grow to approximately €2.4 billion by 2025, with the online segment driving this expansion. This surge highlights the need for regulatory reform to tackle challenges from offshore gambling.
When the monopoly backs competition
When the state-run giant starts rooting for its own reinvention, you know the tide’s turning. The house built the rules. Now, the house wants them torn down.
In an unusual alignment between operator and regulator, the company openly supported dismantling the monopoly in favour of a modern, competitive licensing regime.
According to Heikki Koivula, Head of Compliance at Legal Gaming Attorneys at Law, the turning point came not from policy but from pressure. “The political hurdles were money and vested interests,” he said. “As long as Veikkaus’s returns to the state were high enough, no one wanted to touch the system. But once its market share dropped, reform became a viable alternative.” Veikkaus’s CEO, Olli Sarekoski, publicly floated dismantling the monopoly in late 2022, a brave move enabled by the operator’s deep political clout.
The draft legislation submitted to Parliament in March 2025 outlines this new system. It allows private operators to apply for licences for online casino and betting products, while over land-based gaming and lotteries.
The rollout is clearly staged. Licence applications will begin in 2026. Licensed operators can go live in 2027, and from 2028, only B2B-licensed suppliers will be allowed to operate within the ecosystem.
Inside the Finnish figures
The EGBA’s 2025 report presents a clear case for how multi-licensing improves market control, consumer safety, and sector growth. Across 21 European countries, EGBA members:
- Generated €13.5 billion in online gross gaming revenue in 2024, a 15 percent annual rise.
- Processed over 177 billion bets.
- Delivered a 93.7 percent return-to-player rate.
- Sent 67 million safer gambling messages to customers, including 23 million personalised messages based on player behaviour.
When markets are guided rather than grabbed, they do more than make money. They build trust, balance risk, and put the player first.
Finland expects strong industry uptake, however, they have revised the projections. According to figures from the Finnish Gambling Association, the Ministry of Finance initially estimated between 50 and 60 operator applications. “Due to the increasing restrictiveness of the framework, our revised estimate is now 40 to 50,” confirmed Koivula.
Safer gambling and real risks
Finland isn’t just reforming for economic gain. A new survey by Takaisinperintä shows that over a quarter of struggling borrowers, 28 percent, took out payday loans to gamble. The data adds weight to calls for tighter consumer safeguards. Betting and gaming ranked as the third biggest drivers of debt after urgent household repairs and essential goods.
The latest data will influence regulatory plans in the coming months. Smart licensing must lock in strong player protection from the start. The Gambling Act must deliver strong safeguards through clear obligations for licensed operators. While affordability checks will not be mandatory, operators must act under a formal duty of care, obligating them to monitor risky gambling behaviour and intervene. “The Ministry of the Interior is currently finalising the exact content,” said Koivula, “and will define how to identify and address risky gambling behaviour, possibly using AI or other tech-based tools.”
But if the grip gets too tight, players will slip away. Clamp down too tight, and the players slip through your fingers.
Affiliate partnerships remain one of Finland’s most divisive topics. “Affiliate marketing is being banned,” Koivula confirmed. “The problem is, those pushing the ban may not fully understand the knock-on effects. It’s likely to crowd traditional media channels and weaken the channelisation rate when we need it at its strongest.”
Regulation sets the pace for what comes next
Finland’s new market will not start from scratch. Neighbouring countries offer models, missteps, and momentum. Sweden’s 2019 liberalisation brought new revenue, but also regulatory headaches. Denmark, meanwhile, earned praise for high channelisation and balanced oversight.
Regulators must weigh marketing rules, tax rates, responsible gaming obligations, AML frameworks, and platform transparency. According to recent reports, the incoming regime will set a 22 percent GGR tax rate for online licensees. A new regulatory authority under the Ministry of Finance will oversee licensing, compliance, and enforcement.
In this context, EGBA’s 2025 report highlights a unique moment for Finland to learn from the rest of Europe and build a better blueprint. As noted by Maarten Haijer, Secretary General of EGBA:
“Properly regulated markets are not only thriving economically but are better positioned to meet player safety expectations.”
“Mistakes made elsewhere have not gone unnoticed,” Koivula noted. “Oversaturation of gambling ads in Sweden, for example, was a red flag. Finland explicitly sought to avoid that, but ironically, we may be heading there, anyway.” Restrictions on online and affiliate marketing could funnel everyone into the same legacy media spaces, amplifying noise rather than reducing risk.
A market waking up and drawing a crowd
The shift to licensing is already sparking movement in the industry. Finnish platform provider Finnplay has signed several pre-regulatory agreements with operators preparing for market entry. Companies are exploring localisation, mobile-first design, real-time payments, and new responsible gambling tools tailored for Finnish users.
B2B licensing will also play a strategic role in supporting channelisation. “Many expectations have been pinned on B2B as a functional lever,” said Koivula, though questions remain over liability and enforcement strength.
Online gambling in Finland could surge to €1.56 billion next year, making up 65 percent of the market. The rise of live dealer formats and Finnish favourites like football and hockey are powering this shift.
Growth matters, but so does governance. Finland’s lawmakers must now juggle safety, ethics, advertising rules, and a workable tax model. And they’re on the clock. Public patience is running out.
A test case for the future?
Finland may soon find itself a case study for better or worse. “At last year’s Finnish Gaming Conference in Helsinki, I saw a large delegation from Iceland’s gaming authorities,” said Koivula. “They’re clearly watching. Finland could absolutely become a model. But what kind of model? That’s the real question.”
Finland’s upcoming licensing regime is more than a policy shift. It’s where financial strategy meets moral responsibility, and both need to win. The choices made now will echo across the region.
“I’m afraid it may already be too late to avoid repeating the early-stage mistakes of Sweden or the UK,” said Koivula. “What’s needed now is political courage, and time is running short.”
If they trip at the starting line, Finland won’t get credit for joining the race. The eyes of Europe are on Finland, not for what it’s promised, but for what it actually delivers. If political courage fails and they ignore industry insight, this won’t be a new era. It’ll be déjà vu dressed up in Finnish blue.
