FINLAND MARKET REPORT
Shaping the framework for a licensing system Overview of the Finnish gambling market The current gambling trend in Finland shows a shift towards online gambling services. According to a study in 2023, 70 percent of Finns had consumed gambling services in the past year, with 30 percent exclusively online. The state operator holds 60 percent of the overall market and 50 percent of the online market. Additionally, €520-590 million is spent annually on unregulated gambling, with nearly 90 percent of that coming from just six percent of high-risk gamblers. 12 As the consumption of online gambling keeps growing, particularly on unregulated markets, concerns about Veikkaus’s monopoly and current regulations have sparked discussions on market liberalisation and reforms. This has highlighted the need for regulatory changes to address the risks posed by unregulated gambling and to protect vulnerable players. Introducing B2C and B2B licenses for online gambling Unlike the current principal legislative act applying to gambling and lottery related activities, the Finnish Lotteries Act (1047/2001, as amended), the new law will distinguish between online gambling activities and on-site gambling activities. Under the new proposed regime, the provision of gambling services requires would-be operators to apply for and obtain either an exclusive, on-site gambling license or a non- exclusive, online gambling license for the specific gambling activity identified in the license. In addition, an exclusive license may be granted for lotteries and scratch cards. The exclusive licenses will be valid for ten years at a time, while the B2C and B2B licenses will be valid for a maximum of five years. The exclusive licenses will be granted to one or two operators under governmental control. Under the new proposed regime, Veikkaus – or rather its to-be established affiliate — would retain exclusivity over certain products, such as lotteries, scratch cards, slot machines, and on-site casino games. The new law stipulates a requirement for the separation of operations between the holder of an exclusive license and any legal entity belonging to the same corporate group. Under the
proposed regime, the exclusive operator cannot operate in the open market, leading to the establishment of a new corporate structure for Veikkaus Oy. Under this structure, Veikkaus Oy would remain the parent company, owning four subsidiaries — one existing (Fennica Gaming Oy) and three new (Veikkaus Monopoli Oy, Veikkaus Lisenssi Oy, and Veikkaus Tech Oy) — created as business transfers per the government plan. 13 It is to be noted that the Draft Act has left the door open for the government to divest shares in the exclusive license holders, as the requirement is only that the government holds the voting power in the exclusive license operators. While Veikkaus will still retain its exclusive right to operate on-site gambling and lotteries, private operators will have the option to seek a non-exclusive B2C license for specific types of betting. Specifically, fixed-odds betting, pool betting, virtual betting, electronic casino games, electronic money bingo, horse betting and electronic slot machine games. The Finnish licensing system will also cover B2B licenses for software used in the provision of gambling services. For instance, operators providing game engines or other betting software, random number generators, software to display gambling results, live stream solutions, gambling monitoring software, or software used for transfers to game accounts, will require B2B licenses to have their software used for gambling in Finland and licensed B2C operators may only use licensed software. However, receiving payments or distributing winnings related to gambling games organized by the holder of an exclusive license or a gambling operation license, as well as providing premises for the use of slot machines or lottery devices, will not require a separate license under the proposed regime. According to the Draft Act, the licensing system will take effect in two stages: B2C licenses will become applicable starting in 2026, with licensed gambling activities commencing in July 2026 at the earliest and January 2027 at the latest. B2B licenses may be applied for in January 2027, and B2B activities will commence under license in 2028. Previous infringements likely to preclude license As Finland moves towards market liberalisation, the National
12 Finnish Competition and Consumer Authority (FCCA), Internetissä ja yksinoikeusjärjestelmän ulkopuolella tapahtuvan rahapelaamisen nyky- tila ja kehitys (Kilpailu- ja kuluttajaviraston Tutkimusraportteja 3/2023, 2023) 20-21; 27-28 <https://www.kkv.fi/uploads/sites/2/2023-03-tutki- musraportteja-rahapelaaminen.pdf> accessed 5 September 2024 13 Finnish Government, Programme of Prime Minister Petteri Orpo’s Government (20 June 2023) <https://valtioneuvosto.fi/en/governments/ government-programme#/6/2> accessed 4 September 2024
PAGE 19
IMGL MAGAZINE | DECEMBER 2024
Made with FlippingBook flipbook maker