Questions and answers on gambling system reform 

The premise under the Government Programme is to reform the gambling system by opening it up to competition by means of a licensing approach. Moreover, under the Government Programme the monopoly activities remaining with Veikkaus and those in the competitive market would be separated into different companies within the same group. Hence, the terms of reference for the project did not include assessing the alternative of retaining the monopoly system. 

As laid out in the Government Programme, the aim of the reform is to prevent and reduce gambling-related harm and to increase the channelling of demand to a regulated and controlled gambling system. At present, several enterprises outside the monopoly system offer to mainland Finland online gambling games that are beyond the scope of regulation and control as well as Finnish taxation on the profits from the games.

The new gambling system is to be introduced stepwise. Gambling enterprises could submit applications for licences as from the beginning of 2026. Licensed gambling services could be launched as from the beginning of 2027. The current Veikkaus Oy would maintain its monopoly until that time. 

Game software licence applications could be submitted as from the beginning of 2027. The obligation to offer only game software from holders of the relevant licence in running gambling games would apply as from the beginning of 2028, after a transition period. The competent licence authority would be the National Police Board until the end of 2026. The new Finnish Supervisory Agency would take over as licence and control authority at the start of 2027. 

Veikkaus could obtain an exclusive licence for lotteries, pools and physical slot machines as well as physical casino games. In the competitive market, gambling licences could be obtained for betting and certain types of online gambling games. Betting would encompass on-track horse betting and virtual betting. Online gambling games in the competitive market would encompass online casino games, online money bingo and online slot machines. 

According to the Government Programme, the aim of the reform is to prevent and reduce economic, social and health-related harm resulting from gambling and to improve the channelling rate of the gambling system. The link between preventing gambling-related harm and raising the channelling rate is not unambiguous. 

Channelling refers to steering gambling to a regulated and controlled supply of games. The channelling rate describes the proportion of gambling stakes placed with regulated providers. 

The channelling rate is impacted by the extent to which gambling enterprises seek to enter the gambling market. A rising channelling rate may have a positive effect from the perspective of harm prevention, when the supply of gambling games within the gambling system poses materially lower risk of harm compared to other online gambling, and when the volume of gambling remains moderate.

The crucial issue in terms of gambling-related harm is the availability of gambling games, i.e. how readily gambling games can be accessed by people, the nature of the games and how they can be played. Availability increases with the visibility and marketing of gambling games, exposure to such games and elements that tempt people to gamble.

Experts estimate that the impact of the approaches included in the legislative proposal may serve to increase gambling-related harm. This is due to the fact that the marketing of gambling games posing a particular risk of gambling-related harm will be permitted (physical slot machines and casino games excluded). No restrictions in terms of timing or volume are proposed for marketing or the permitted channels for marketing. The consumption of gambling games will moreover not be restricted by means of shared consumption limits applicable to all licence holders. 

The legislative proposal has sought to arrive at a regulatory approach that would strike a balance between restrictive regulation to prevent and reduce gambling-related harm and elements supporting the attractiveness of the gambling system that boost channelling capacity.

Under the new system, means to control the availability of gambling games would include certain restrictions on marketing, imposing an age limit to gambling, introducing mandatory identity authentication when gambling, gambling bans and restricting game consumption. 

Channelling refers to steering gambling to a regulated and controlled supply of games. The channelling rate describes the proportion of gambling stakes placed with regulated providers. The channelling rate is impacted by the extent to which gambling enterprises seek to enter the regulated gambling market.

At present, gamblers may play online gambling games outside the Veikkaus monopoly that are not subject to the legislation or control of mainland Finland. Going forward, the licences of gambling enterprises and partly opening up the gambling system to a competitive market would basically make it possible for an increasing share of online gambling being steered to the regulated and controlled gambling system in mainland Finland. 

The development of the channelling rate also depends on how attractive gambling enterprises find the new licensing system. Attractiveness depends on factors such as licensing procedure, permissibility of marketing, regulation of gambling game supply, and tax-related issues. 

The legislative proposal has sought to arrive at a regulatory approach that would strike a balance between restrictive regulation to prevent and reduce gambling-related harm and elements supporting the attractiveness of the gambling system that boost channelling capacity.

Based on the comments received on the proposal, the aim of the Government Programme concerning improvement in the channelling rate will very likely be accomplished with the legislative approach in the proposal.

Based on international benchmarking, options considered during preparation were stops on payments or network traffic (IP or DNS blocking, for example) and so-called warning pages. The Government Programme does not include an entry on such tools. At this point, the introduction of stops on network traffic and payments is not proposed. 

Once the Gambling Act has entered into force, the functioning of the new gambling games market is to be monitored and the need to lay down provisions on payment and network traffic stops will be assessed. Account should be taken here of aspects such as technical feasibility and more specific cost impacts on the various operators. 

Gambling outside the gambling system is also not proposed to to be prohibited. The taxation of winnings from gambling would change so that winnings from unlicensed gambling games provided to Finland from another EU/EEA Member State would be liable to tax, going forward.

The basis for the reform is not gambling proceeds but the prevention and reduction of gambling-related harm. However, as laid out in the Government Programme, the aim is also to steer gambling to a supply regulated by means of the new Gambling Act. This supply is estimated to impact on proceeds from gambling. 

At the same time, it should be taken into account that the reform is estimated to reduce the market share of Veikkaus Oy. The proceeds of Veikkaus Oy are funnelled in their entirety to its current owner, the state of Finland. 

The income to the state currently consists of winnings disbursed to the state by Veikkaus Oy and the lottery tax it pays. According to the general government fiscal plan, the proceeds of Veikkaus Oy’s gambling games and the lottery tax it paid come to a total of roughly EUR 700 million per year. 
Under the new gambling system, income to the state would consist of 1) dividends paid to the state by Veikkaus Oy, 2) the monopoly compensation, and 3) lottery tax and corporate tax revenue.

The development of income to the state cannot be accurately estimated, as the amount of income depends on factors including the development of the monopoly business of Veikkaus Oy, the channelling rate of the new system and developments in the volume of gambling.

Preliminary estimates made by the Ministry of Finance suggest that the income generated for the state by the new system will fall in the region of EUR 570–760 million, depending on the volume of gambling, the channelling rate and the market share of Veikkaus Oy. The reform would initially deliver higher income to the state owing to the monopoly compensation paid to the state by Veikkaus Oy. 

Identity authentication would be required for all gambling. The identification requirement would enable setting gambling bans and consumption limits as well as monitoring one’s personal gambling games consumption.

The Act would require licence holders to implement gambling games in a way that minimises any gambling-related harm. This duty of care would include preventing excessive gambling by means of ongoing monitoring of gambling behaviour. 

Licence holders would also be required to make it possible for gamblers to review the funds and transactions in their gambling account for the past year and provide gamblers with a function that allows them to assess their gambling behaviour. 

A gambling enterprise-specific money transfer limit would apply to gambling under a gambling account. Gamblers would need to personally set a limit on the funds they may transfer into their gambling account in a single day and month. 

When necessary, gambling enterprises would have to impose quantity and time restrictions specific to form of game-running as well as individual games and players. Licence holders would be required to prepare a written self-supervision plan in order to ensure that their activities comply with law. 

As laid out in the Government Programme, consumers would be able to obtain a gambling ban from one platform to cover all licensed gambling games (gambling ban register). Gambling enterprises would moreover have to enable players to impose bans on individual games or groups of games. A quick-stop feature to interrupt all gambling would also be in use. Marketing could not be targeted to persons included on the gambling ban register. 

The Government could issue a decree to lay down provisions on daily, monthly and annual maximum loss limits for each gambling enterprise. Loss limit means the maximum amount of money a player could lose when gambling. In addition, the Ministry of the Interior could issue regulations concerning the characteristics of gambling games in the interests of preventing and reducing gambling-related harm. 

As part of the reform, the work to combat gambling-related harm carried out in the administrative branch of the Ministry of Social Affairs and Health would be funded from the Budget. Discretionary government grants could be made available for the prevention and reduction of gambling-related harm.

As laid out in the Government Programme, the project has examined the option of allowing the placement of slot machines only in separate, monitored spaces. Under the proposal, the status quo would be retained, with slot machines allowed in shops, kiosks and petrol stations. Underlying this decision is the sharp decline in the number of slot machines and the volume of their use. To an increasing extent, gambling has shifted online, into digital channels. Mandatory identity authentication moreover allows limits to be placed on slot machine gambling. 

According to the Government Programme, the marketing of gambling games would be permitted in the new gambling system. The Act would contain provisions on marketing, prohibited marketing tools and methods, the information to be provided in the context of marketing, sponsorship and direct marketing prohibitions.

All marketing should be moderate in volume, scope, visibility and rate of repetition. Marketing could not be targeted to minors or otherwise vulnerable persons.

Marketing should always indicate the permitted age limit for gambling and provide information on where to learn more about tools for controlling gambling and providers of services to problem gamblers. 

The Act would lay down an age limit for gambling. The age limit would remain the same as now, 18 or older. All gambling would be subject to the identity authentication requirement in order to ensure that the gambler is of age.

The marketing of gambling games is required to pay particular attention to protecting minors from gambling-related harm. Marketing should always indicate the permitted age limit for gambling. Marketing could not be targeted to minors and minor persons would not be allowed to appear in marketing materials. The marketing of gambling games at programmes and events geared to minors would be prohibited.

Licence holders could market gambling games on their own websites and social media accounts in such a way that the marketing is not interactive with consumers. Restrictions would be put into place to prevent ‘influencer marketing’ as a marketing tool. 

Persons or teams sponsored could nonetheless display the logo of the gambling enterprises sponsoring them also in their own channels. Mentioning gambling games in sponsorships would be prohibited.

Gambling enterprises would be barred from concluding sponsorship deals with persons under the age of 18 or with regard to events or competitions for persons under the age of 18. When concluding sponsorship deals, gambling enterprises would need to ensure that their logos or the names of their gambling products or services do not appear in products or services specifically intended for use by persons under the age of 18. 

It is likely that the reform will result in considerably higher marketing volume and visibility for gambling games. Despite the restrictions mentioned above, the increased marketing and ample visibility of gambling games could expose also minors to the marketing of gambling games. The new legislation would enable the marketing also of gambling games which current legislation has prohibited Veikkaus Oy from marketing due to the high risk of gambling-related harm associated with those games. Holders of exclusive licence and gambling licence should ensure that their marketing is moderate in volume, scope, visibility and rate of repetition.

The Ministry of Social Affairs and Health and the Finnish Institute for Health and Welfare would have the right to access gambling information in order to make the prevention and reduction of gambling-related harm as effective as possible.

The right of access would be limited to information necessary for the performance of the authorities’ duties. All personal data included in the materials processed should be pseudonymised before disclosure or analysis, i.e. all direct identifying information of persons should be removed. The information could be used for research and improving prevention and treatment. 

Under the Act currently in force, only Veikkaus Oy has been permitted to market both itself as an enterprise and gambling games other than ones with which a high risk of gambling-related harm is associated. Playing gambling games besides those of Veikkaus Oy has not been prohibited, however.

The most visible change to the status quo would be the permitted marketing by licenced gambling enterprises in Finland. These gambling enterprises would be allowed to advertise gambling games and themselves as enterprises in various channels, such as television, radio, newspapers and magazines, social media and outdoor marketing, subject to certain limitations. 

Opening up the gambling market to competition may be presumed to lead to a significant increase in the number of market actors. In Denmark and Sweden, for example, the number of actors providing gambling games increased significantly after the introduction of the licensing system. It is likely that the reform will result in considerably higher marketing volume and visibility for gambling games. 

The new legislation would enable the marketing also of gambling games which current legislation has prohibited Veikkaus Oy from marketing due to the high risk of gambling-related harm associated with them. Holders of exclusive licence and gambling licence should ensure that their marketing is moderate in volume, scope, visibility and rate of repetition.

All marketing should be moderate in volume, scope, visibility and rate of repetition. Marketing could not be targeted to minors or otherwise vulnerable persons. 

Example of prohibited marketing include idealising gambling, painting a positive picture of heavy gambling, making gambling mundane, presenting gambling as a solution to a person’s financial difficulties or as an alternative to employment, and portraying gambling as being free from risk. Holder of licences would have limited scope to provide bonus game tokens and other extras such as free tickets during the customer relationship. All other provision of game tokens, free games, discounts or special combination offers would be prohibited. Direct marketing would be allowed to target only persons who have given their express consent to direct marketing. Telemarketing would always be prohibited. 

Marketing should always indicate the permitted age limit for gambling and provide information on where to learn more about tools for controlling gambling and providers of services to problem gamblers. 

On social media, gambling enterprises could market gambling games only on their own websites and social media accounts. Such marketing would not be allowed to be interactive with consumers. Hence commercial collaboration with social media influencers on the influencers’ own accounts would not be permitted. The restriction seeks to protect young consumers in particular. 

The outdoor marketing of gambling games involving a high risk of harm, such as online casinos and betting, would be prohibited. While the brand marketing of licence holders in the competitive market would be permitted, marketing materials could not be placed in the vicinity of schools, for example. At sports events and other public events, it would be possible to market not only a licence holder’s brand but also its gambling games.

Under the new system, the marketing of the monopoly enterprise, i.e. Veikkaus, would be subject to the same provisions as actors in the competitive market, with certain exceptions. 

As is the case now, Veikkaus may not market the physical slot machines, casino games and places to play these that will remain exclusive to it. The marketing of these gambling games would only be permitted in the monitored arcades and casinos in which the said games have been placed. It would, however, be permitted to provide information on the locations and business hours of these places where gambling games may be played. 

The outdoor marketing of gambling games involving a specific risk of harm, such as online casinos and betting, would be prohibited. The outdoor brand marketing of licence holders in the competitive market would nonetheless be permitted but such marketing could not be placed in the vicinity of schools, for example. In addition, during sports events and other public events, at the event it would be possible to market not only a licence holder’s brand but also its gambling games. The outdoor marketing of an exclusive licence holder and its pools games, lotteries and instant lotteries, online instant lotteries and combination games would be permitted.

Sponsorship would be a permitted form of marketing. Persons sponsored could display their sponsor on their clothing, social media and websites, for example. The sponsoring licence holder could also act as the main sponsor for a sports arena, in which case the arena could be named after the sponsor and the sponsor’s name and logo could appear in the arena and its structures. Mentioning the gambling games run by the licence holder in sponsorships would be prohibited. However, during events it would be possible at the venue to market also gambling games and not only the brand of the company running those games. 

The sports sponsorships of gambling enterprises may be estimated to increase considerably in the years following the gambling system’s entry into force, after which the increase in sponsorship income is estimated to plateau. The proceeds from sponsorship are not evenly distributed among the various events. Based on international benchmarking, proceeds are estimated to flow to nationally and internationally important events and to the most successful teams and athletes. 

An exclusive licence could be granted to a limited liability company controlled by the state and engaging in the running of gambling games. In practice, this company would be Veikkaus Oy. Gambling licences for the competitive gambling games market and game software licences could be granted to the natural and legal persons referred to in the Enterprise Act. In addition to general requirements, the licence applicant must also meet the requirements of fitness and propriety laid down in the Gambling Act.

Non-profit organisations could apply for a licence to run gambling games in the same manner and subject to the same requirements as any other entity. The reform of the gambling system is based on the Government Programme, which does not contain any entries on making a specific right to run gambling games available to non-profit organisations. The proposal does not include an approach modelled on Swedish legislation where non-profit actors could run small-scale gambling games exempt from tax and subject to a lower application fee for the purpose of their fundraising. 

Provisions on the application fees charged to licence applicants would be laid down by ministry decree. Under the Act on Criteria for Charges Payable to the State, the fee must be equal to the average costs incurred from producing the service charged. 

Provisions on the licence compensation paid to the state by a monopoly actor in addition to the application fee would be laid down in the Gambling Act. Payment of the compensation aims to ensure that Veikkaus Oy, as a result of its exclusive right, does not receive distortive financial benefit that falls under the scope of the EU rules on state aid. The amount of the compensation would be set by the Government on the basis of the monopoly actor’s proceeds from gambling games. The validity of the exclusive licence would be conditional upon payment of the compensation.

The new Gambling Act would also lay down provisions on an annual supervision fee to be collected from all licence holders in order to cover the costs incurred by the authority from supervision.

The exclusive licence would be granted for periods of ten years at a time. Gambling game licences and game software licences would be granted for a period of not more than five years at a time. 

The new system would allow Veikkaus Oy to run gambling games both as a monopoly actor and as a separate enterprise in the competitive market. This would be subject to the condition that the functions of the monopoly actor and the competitive market enterprise, such as gambling game websites, gambling game account and customer registers, are clearly separated within the group. Moreover, the financial relations between the monopoly actor and the competitive market enterprise would have to be organised on an arm’s length basis. Any distortion of competition will also be tackled by means of the monopoly compensation so that any excess proceeds from monopoly activities would not be used to finance the group’s other functions. The Prime Minister’s Office would remain responsible for state ownership steering of the entire group also going forward. 

Yes. Veikkaus need no longer be a wholly stated-owned limited liability company. This would allow the state owner greater latitude in respect of any future decisions concerning ownership of Veikkaus. The proposed legislation will not immediately change the holding of the state in Veikkaus Oy. It will moreover ensure that the state would retain control over Veikkaus Oy under all circumstances. If, at some later point in time, the state decided to relinquish its holding in Veikkaus Oy in part or in full due to the development of shareholder value, this would be subject to the approval of Parliament. 

The new gambling system would be based on licences granted by the supervisory authority upon application. A new task for the authority would be to process licence applications and supervise the licensed activities. As of the beginning of 2027, the competent authority would be the new Finnish Supervisory Agency. The National Police Board would remain the licensing authority in 2026. 

The supervisory authority would have broad powers to supervise gambling. One of the key supervisory tools would be the technical surveillance of games and gambling account transactions carried out by the supervisory authority. In addition, licence holders would be required to ensure, through audits by a third-party assessment body, that their gambling game systems, lottery-drawing devices and lottery-drawing methods were reliable and that the outcomes of the draws were random. Gambling licence holders would be required to submit annual reports on their activities to the supervisory authority. 

The powers of the supervisory authority to address illegal gambling outside the system and illegal marketing would remain largely the same as at present. At this point, the introduction of stops on network traffic and payments is not proposed. Once the Gambling Act has entered into force, the functioning of the new gambling games market is to be monitored and the need to lay down provisions on payment and network traffic stops will be assessed, taking into account factors such as technical feasibility and detailed cost impacts on the various actors.

The authority could impose on a licence holder an administrative fine for breach or neglect of the obligations laid down in the Gambling Act as well as a penalty payment for more serious infractions. As a final resort, the authority could withdraw the licence granted. Like at present, certain acts in violation of the Gambling Act would be punishable under the Criminal Code. 

The authority could also address illegal activities by issuing an injunction on the running of a gambling game or on marketing and also reinforce the injunction by means of conditional fine. Where the injunction concerned an actor without a licence to run gambling games, the authority could order the internet service provider to remove all content deemed to be in violation of the law. The supervisory authority would also be required to make public any decisions on injunctions against marketing or game running, administrative fines and penalty payments, and withdrawal of licence. 

The total costs of the Finnish Supervisory Agency depend on factors such as the number of licence applicants and granted licences and the supply of games outside the licensing system. Although the authority’s personnel requirements cannot as yet be precisely estimated, the number of personnel is nonetheless believed to increase considerably from current figures.

Financing is also required for the information systems consistent with the new licensing and supervisory duties. The aim is that going forward, the costs of licensing and supervision will be mainly covered by licence and supervision fees collected from licence holders. 

The new Gambling Act would contain several tools to detect, prevent and address any abuses and crimes that may relate to gambling. These include assessment of the fitness and propriety of licence holders at the application stage, the technical and other surveillance of running gambling games, gambling system audits, restrictions on betting objects and obligation to suspend betting in the event of irregularity, as well as licence holders’ self-supervision plans and obligations to notify and report. Players should also be provided with a clear-cut procedure for reporting any abuses and other malfeasance. Gambling activities would also be subject to the obligations laid down in the legislation on money laundering. 

The government proposal was submitted to Parliament on 20 March 2025. The goal is for Parliament to consider the proposal during its spring session 2025.

The goal is that gambling enterprises could start submitting applications for licences at the beginning of 2026 and that licensed gambling could commence at the beginning of 2027.

In autumn 2024, the Ministry of Finance established a project to implement the licensing and control required under the new gambling system (VM168:00/2024Link to an external website). Running from 17 October 2024 to 31 December 2026, the project is tasked with preparing the necessary measures to allow activities under the new gambling system to commence in accordance with the timetable laid down in the Act. The project will be responsible for matters such as preparing the necessary information systems and their acquisition as well as the organisational structure of the operational unit for supervisory functions.

The draft proposal was prepared by a working group of a Ministry of the Interior legislative project under the direction of a political steering group consisting of state secretaries. 

On 28 November 2023, the Ministry of the Interior held an extensive consultation session attended by some 60 experts from various stakeholder groups. Other experts have also been heard from as part of the project. The government proposal was circulated for comments from 3 July to 18 August 2024 and the proposal was finalised on the basis of feedback from the comments.

The proposed legislation concerning changes to the gambling system was notified to the European Commission on 1 November 2024. The standstill period that is a part of the notification procedure binding on Member States ended on 4 March 2025. The purpose of the notification was to elicit feedback from the Commission and the other Member States as to whether the reform might hamper the free movement of services in the single market. The Commission submitted no remarks or detailed opinion. Malta was the only Member State to submit a detailed opinion. The notification and the accompanying draft government proposal (notification no. 2024/0601/FI) is available for review in TRISLink to an external website. 

The target timetable set for the reform in the Government Programme has impacted on the opportunities to consult experts and stakeholders and thus to comprehensively assess the alternative avenues or their impacts. Therefore the proposal cannot in all respects justify, on the basis of the estimated impacts of the various approaches, the reasons why it is held that the objectives cannot be reached equally well by alternative means as by the proposed approach.

Meetings have been held with the Government of Åland as the project has progressed. The Government of Åland was informed of the content of the draft proposal and economic impact assessments were provided. The reform makes it possible for Åland-based PAF to apply for a licence. The lottery tax and corporate tax paid by PAF would be remitted back to Åland. Calculations on the income recognised by PAF and the taxes paid by it cannot be made, as their development depends on factors independent of the legislative reform (in particular the market share of PAF and the development of its business). 

In order to implement the entry in the Government Programme, the entire draft proposal was translated into Swedish to allow the Government of Åland to comment on it. The Government of Åland pointed out that stops on payments and network traffic may be problematic vis-à-vis the Act on the Autonomy of Åland. The Government of Åland also remarked on issues of tax equalisation falling within the remit of the Ministry of Finance.

Since the reform extensively overhauls the gambling system and the legislation on gambling, it is important to monitor and assess how the proposed measures implement the Government Programme aim of preventing and reducing gambling-related harm and improving the channelling rate. The functioning of the new legislation would be monitored by means including supervision by the authorities and information received from stakeholders.