Finland’s Shift Towards a Regulated Gambling Market

Finland is accelerating its transition from a state-controlled gambling model to a competitive, regulated market, recently submitting draft legislation to the European Commission. Originally set for 2027, this shift is now expected to take effect by January 1, 2026, reflecting Finland’s aim to align its gambling industry with European standards that support competitive frameworks.

The revised draft introduces a significant change: commercial operators will now be allowed to offer horseracing betting. This shift comes in response to sector feedback, prompting the Ministry of the Interior to ensure state budget support for the horseracing industry rather than preserving a state monopoly. The European Commission and EU member states will review this draft to ensure it complies with EU regulations. If all proceeds as planned, the Finnish government will bring a finalized version to parliament in the spring of 2025.

The legislative draft, open for public consultation in July, drew mixed responses from industry participants. Many welcome the move towards a competitive market, though concerns have been raised about potentially restrictive regulations. One point of contention is the ban on affiliate and social media marketing. The European Gaming and Betting Association (EGBA) cautions that these limits could disadvantage licensed operators, making regulated options less appealing than offshore alternatives.

A primary goal of the new regulations is “channelization”—keeping players within regulated markets to ensure safe play and limit unregulated market growth. Critics, however, warn that stringent marketing restrictions could hinder this objective by reducing the visibility and appeal of licensed platforms. Finland faces the challenge of creating a competitive, attractive market while upholding robust regulatory standards, a balancing act that could influence broader industry practices if successful.

This transition will have a substantial impact on Veikkaus, Finland’s state-owned gambling provider, which will be divided into two separate entities: one to join the competitive market with commercial offerings and another to oversee the national lottery. Some policymakers even advocate for selling off Veikkaus’s commercial segment, which would further open the market to private sector players.

Veikkaus has already been preparing for these changes, addressing a 21 percent drop in gross gaming revenue during the first half of the year. The organization is currently in discussions with around 620 employees about possible restructuring, part of a broader strategy to adapt to the upcoming competitive environment.

Finland’s transition marks a major shift in Nordic gambling policy, particularly as Norway remains one of the few European countries maintaining a state monopoly on gambling. However, similar discussions are underway in Norway, where the conservative opposition party, Høyre, has shown interest in advocating for a competitive model. Finland’s decision could serve as an example for further liberalization in the region, aligning with a broader European preference for regulated competition.

This model prioritizes regulatory oversight while welcoming competition, offering a potential roadmap for other countries considering similar reforms. By retaining control over specific areas, like the national lottery, and establishing clear rules for market participation, Finland’s approach may emerge as a benchmark for balancing competition with regulatory standards.

The anticipated changes open new doors for international operators entering what was once a monopolized market. For Finnish players, a competitive market means expanded choices within a regulated framework, supporting both transparency and consumer protection.