What is important to know about the world of gambling entertainment in Finland?

Many virtual gambling sites have always focused their services on Finnish players, given their passion for gambling. According to statistics, 41% of the adult population of Finland regularly participates in gambling. Thus, Finland appears to be a promising market for both land-based and online casino services. However, there are only 20 conventional casinos in the country and the number of online operators is limited. This is due to the state monopoly on gambling establishments, which does not allow private companies to obtain gambling licences.

Recently, the Finnish government has announced a planned reform of the gambling monopoly, which is likely to stimulate the development of online casinos without registration in the coming years. In this review, we take a look at the current state of gambling in Finland, the main reasons for the introduction of a licensed market and possible prospects for reform.

The beginnings of gambling in Finland

The tradition of gambling in Finland dates back to the Payazzo machine, which became available in the 1920s. The beginnings of this popular niche in the country were similarly humble, but that didn't stop the gambling industry from flourishing over time. It went through several phases, and as much as it did, it was carefully regulated by the Finnish government, which removed the monopoly and introduced new rules and laws. There were few changes until 2001, so things remained more or less unchanged for more than 50 years. It was then that the Lotteries Act and the Gambling Act came into force, which regulated the monopoly in the same way as before. However, it also protected players and made rules to minimise gambling addiction.

What you need to know about gambling regulations in Finland

Finland has new gambling regulations introduced by the government in 2021. Most of these changes started on 1 January 2022, but some aspects had a transition period and came into force at the beginning of 2023, pending the end of this period.

Why the gambling monopoly system in Finland needs to be reformed

The main reason is the financial losses, estimated at around €500-550 million annually. These losses were identified in a preliminary study submitted to the Ministry of the Interior on 17 April 2023. A significant percentage of players favour offshore online casinos, raising concerns within the Finnish government and prompting changes to the current gambling regulation.

Insufficient selection of games

A limited selection of games is a disadvantage of the gambling monopoly in state-owned casinos, where many new and well-known studios are inaccessible to Finnish players. While some popular software providers are available through Veikkaus, offshore casinos offer impressive gaming lobbies with regular updates of new games and software providers.

Available bonuses

Offshore operators grab the attention of Finnish players with lucrative bonuses and special offers, including welcome offers, reload bonuses, cashback for losses and tournaments. This stands in stark contrast to state-owned casinos, which do not provide bonus offers for slot machines, table games or betting.

EU problems

Most European countries use licensing for gambling monopolies, and the European Union has expressed concerns about protectionism in the state monopoly in Finland. Inspired by Sweden's positive experience, the government intends to reform the gambling industry by 2026.

What lies ahead for the gambling industry in Finland

The new government has expressed consensus with the public on the need to reform the monopoly, planning to introduce a multi-licence system. However, the exact steps of the reform have not yet been defined, but the orientation is taken from the experience of Sweden, Denmark and the Netherlands.

In addition, the government aims to introduce a self-exclusion mechanism similar to the Dutch example, creating a single platform for all licensed gambling establishments. Finally, the reform should address economic and social aspects such as reducing the canalisation rate and combating the harmful aspects of gambling.