FINLAND
What could the upcoming licensing system look like? The process towards the partial licensing system is still in the early stages, and the findings of the official study are unpublished at the time of writing, but the discussion in the background has been lively since last fall. The following includes speculation based on the author’s knowledge and understanding of the situation. The partial licensing system will only include digital casino games and fixed-odds betting, while lottery games, scratch cards, physical casinos, and slot machines will remain under the monopoly system. When it comes to betting pool games, horse racing betting, and certain other game types, for example, fast-paced lottery-type of products, it is not yet clear whether they will be included in the partial licensing system or if they will remain within the monopoly. The number of licenses will not be limited, and all companies meeting the license conditions will receive a license. It is clear that Finland will not copy-paste a model from another jurisdiction. That being said, the licensing systems of the other Nordic countries, namely Sweden and Denmark, will be the ones examined most closely. Features from other jurisdictions will be also considered, for example, The Netherlands, Ontario, and Estonia have been mentioned in the discussions, but in general, their significance is not going to be as big. Several rules included in the current gambling legislation are expected to be carried over to the new licensing system, e.g., compulsory identification on all gambling and an age limit of 18 years. The license price range can be expected to be similar to Sweden and Denmark, adding the price range on the area of EUR50,000 - EUR75,000. When it comes to gambling tax, it is likely that tax will be based on GGR, and it will be set somewhere between Sweden and Denmark, approximately in the area of 23 percent.
A centralized blocking system for problem players will likely be included and the Swedish SpelPaus will be used as a model. Marketing restrictions will be included, but the scope is unclear. The responsible gambling perspective and the necessity for marketing restrictions have been present in most discussions, but on the other hand, the regulator will be aiming for a high channelization rate which is not possible to achieve with an overly strict licensing system. A Netherlands-style cooling off period has been discussed but is unlikely to be included as such. As a quick change is the most likely, there will simply not be time for long cooling off periods. On the other hand, if a cooling off period is included, it would likely be tied with the enforcement authority’s, the National Police Board’s (“NPB”) official views on illegal activities, practically speaking on their prohibition orders. Thus, if included, the cooling off period would hardly be as extensive as in the Netherlands. Simultaneously introducing a B2B licensing system in parallel with a B2C regime has also been discussed. From the legislator’s perspective, this is seen as another safety layer and a way to better control the entire system. Conclusion Finland is expected to fast-track the shift from a gambling monopoly to a partial licensing system within the next 2-3 years. The features of the new system are yet to be decided, with key interest groups actively lobbying in the background. It is likely that Finland will closely examine the licensing models of Sweden and Denmark, while also considering features from other jurisdictions. The creation of “the world’s best blue and white gambling licensing system” will not be without challenges, as the main objectives are to achieve a high channelization rate and increase state revenue significantly while also prioritizing responsible gambling features and preventing gambling-related harm.
ANTTI KOIVULA Legal Advisor Legal Gaming Attorneys at Law For information contact +358 45 6380585 antti@legal-gaming.com
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IMGL MAGAZINE | APRIL 2023
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