FINLAND MARKET REPORT
suspicious betting in the license holder’s betting events, suspected and confirmed cases of match fixing, and measures taken to prevent match fixing. Although the Draft Act does not pose any direct obligations on the authorities with respect to match fixing, our experience is that responsible operators support market integrity measures, as fraudulent betting leads to operators incurring financial losses. A similar system as has been implemented in several jurisdictions, whereby the licensed operators would be part of a betting integrity monitoring body, would also be called for in Finland. Marketing of online gambling – restrictions and prohibited methods Based on the Draft Act, gambling marketing is not proposed to be banned altogether, but as expected, it will face significant restrictions. The new gambling act, which is based largely on the current legislation, regulates gambling marketing to a significant extent through specifying prohibited marketing methods, information requirements for consumers and marketing restrictions. Following feedback received from public consultation, the second draft has adapted a somewhat looser approach to marketing restrictions than its forerunner. For instance, under the second draft, bonuses are allowed with certain restrictions. Additionally, third-party marketing is not as clearly prohibited as it was in the first draft. Furthermore, the rules for marketing in printed and electronic media have been clarified specifically to cover printed publications and equivalent electronic formats. Below are some of the proposed main restrictions on marketing along with our insights into their potential impact on the gambling market. Restrictions on third-party marketing Unlike in Sweden and Denmark, license holders in Finland are not explicitly allowed to market gambling through third parties, effectively rendering the use of gambling affiliates or influencers unfeasible. The prohibition of third-party marketing is intended to clarify the distinction between licensed operators and illegal ones.
Gambling marketing is generally permitted only when conducted directly by the license holders, with advertisements on various channels required to originate from them. License holders are also expected to control the volume and scope of their marketing to ensure moderation, a requirement more effectively managed through their own channels and media. Affiliate marketing, where third-party websites promote gambling operators in exchange for a commission, is banned entirely. However, there are certain exceptions for third-party marketing. For example, influencer marketing is not entirely banned. Influencers can be used for gambling marketing conducted on the license holder’s own website and social media channels. Marketing will also be permitted in printed media and electronic publications equivalent to printed media, as well as on TV and radio. Compared to the rest of the European market, the restrictions on so-called influencer marketing are unusual. Third- party marketing methods, especially affiliate marketing are a common tool used across Europe to direct customer traffic towards an operator’s websites. If the use of affiliates is prohibited, we see a risk that affiliates may continue their activities for unlicensed operators, undermining the goal of achieving a higher channelisation rate. Additionally, from a consumer protection perspective, it would be advisable to ensure that affiliates are included in the legislation and that they are required to adhere to the same marketing rules as the license holders. Restriction on social media marketing Interactive marketing, such as two-way conversations on social media and reacting to user comments, including the use of emojis, is prohibited. License holders should ensure that there is no option to discuss or comment on their marketing posts on websites or social media accounts, and that their posts cannot be reposted within the network. We expect that limiting social media visibility will help prevent the negative effects of gambling and believe that less community-integrated marketing may hinder the creation of deeper connections with consumers, particularly those in more vulnerable positions.
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IMGL MAGAZINE | DECEMBER 2024
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