Finland has sent the European Commission (EC) the last draft of its proposed gambling legislation. The landmark move, completed on November 1st, secures horseracing's future as a commercial gambling avenue for licensed gambling operators. It is a significant step in the country's efforts to end its legacy monopoly model, which allows only Veikkaus Oy to offer gambling games. According to the new legislation, the state-owned betting agency will compete with new operators in gaming and sports betting—the competitive gaming market benefits Finnish gamers by increasing player incentives, such as special offers and bonuses. Learn more about such offers at casinobonusesnow.com.
The Timely Accomplishment
The Finnish government is on track to implement the proposed competitive gambling market model in 2026. The government had planned to launch in 2026 but changed the date to 2027. There have been questions about whether horseracing should continue to be monopolized by the state-owned betting agency. However, many stakeholders in the horseracing industry wished to see it moved to a licence-based system. Eventually, the government considered this feedback.
In a recent development, a cross-party political committee of politicians resolved the contentious issue of bringing horseracing under the commercial gambling jurisdiction. According to Finland's Ministry of the Interior, the government intends to assist in funding horse breeding processes and other horse racing-related infrastructure.
The committee's last addition was horseracing placement, signaling the end of the revision process. The committee approved the proposed gambling legislation draft for submission to the European Commission for review. After submitting the draft, Finland intends to reform its gambling system and implement the new license model by January 1, 2026.
Reviewing The Proposed Legislation
Finland awaits feedback from the European Commission and other European Union members before proceeding officially. Finland is currently behind, as other EU countries have already abandoned the monopolistic state control model. Its plan to use a multi-licensing approach is ideal as it is widely used in Europe.
The country initiated legislative reform to help reduce and prevent the harms associated with unregulated gambling. It also aims to increase the amount of gambling permitted under national laws and regulated by government authorities. However, its proposed legislation has received criticism in the past. Some stakeholders expressed concerns during the public consultation phase, and some members of the public believed the reforms were not optimized to promote healthy competition.
Others have criticized the proposal to ban social media and affiliate marketing on gambling products. The European Gaming and Betting Association agreed with this criticism, stating that the ban would limit competition among licensed gambling operators.
However, while there is still room for improvement, the anticipated feedback will help guide potential enhancements. It will determine whether the EC and EU member states believe Finland's proposed reforms are in accordance with EU legislation and free movement principles.
Evaluating The Regulation’s Business Friendliness
Despite being plottable, the proposed new gambling legislation leaves the future uncertain. According to the Ministry of the Interior, the government will soon submit the final draft to parliament. The plan is to present it in February 2025 and have it signed into law before June of the same year. This timing will effectively allow for the scheduled full launch in January 2026.
Among the most serious concerns about Finland's proposed gambling landscape is the possibility of unfair competition. Veikkaus' longstanding existence gives it a significant advantage over new competitors. It already has an overwhelmingly large player database and cutting-edge technologies.
However, the current plan to split the state-owned agency may mitigate this impact. According to the plan, the current monopoly will be divided into separate businesses. It will include a B2B operation, an online gaming company, and the traditional monopoly unit.
Some stakeholders believe that selling the monopoly's commercial side of operations would be the best way to avoid future confusion. The possibility of job loss is a major concern for the Finnish people. Currently, approximately 620 people work on a contract basis at Veikkaus. Additionally, Finland's gross gaming revenue has already declined significantly, and it is expected to fall even further shortly. The industry requires major reforms before it can take a turn.
Final Thoughts
Finland's dream of transitioning from a state monopoly to a competitive gambling model is quickly becoming a reality. The government has already made major decisions that would otherwise cause schedule delays. Although uncertain, learning from successful neighbors can influence the remaining portion of the plan. Many EU member states have already made the journey, and Finland can use their lessons to navigate the impending reality successfully.
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