Finland, one of the world’s most avid gambling nations, is preparing for a historic transformation. After decades under the state-owned monopoly of Veikkaus, the Finnish gambling landscape is opening up. By 2027, the country will adopt a competitive licensing model—signaling a seismic shift from centralized control to a regulated, multi-operator market designed to prioritize player protection, tax transparency, and digital competitiveness.
A Market Ready for Change
For years, Finland’s gambling model stood out as an outlier in Europe: a single state-owned operator, Veikkaus, controlled everything from betting to online casino games. Proceeds funded public good initiatives, but the model has shown growing cracks.
Nearly half of Finnish online gambling already occurs through unlicensed foreign operators, with Finnish players flocking to sites regulated in Malta, Estonia, or Curacao. According to estimates, this leakage accounts for between €520–590 million in annual gross gaming revenue.
With a politically united front and strong industry backing, Finland is now finalizing a shift that aims to curb this outflow and bring gambling into the legal fold.
The Road Ahead: Licensing in 2027
The upcoming legislation, expected to pass by autumn 2025, will create a clear, structured framework for licensing online gambling operators. The model will include both B2C operators and B2B suppliers. The application process is expected to begin in early 2026, with operations launching by January 2027—or potentially as early as Q4 2026.
A newly formed gambling authority will oversee licensing, compliance, and consumer protection efforts. This centralized body will be tasked with ensuring responsible gambling measures, mandatory player identification, self-exclusion systems, and advertising restrictions.
Key Changes Coming
- Licensing: All gambling platforms targeting Finnish players will require a license. This includes foreign operators who previously operated in a legal grey area.
- Taxation: A 22% Gross Gaming Revenue (GGR) tax will apply to all licensed operators, striking a balance between revenue generation and market competitiveness.
- Monopoly Adjustment: Veikkaus will retain its monopoly only for lotteries, scratch cards, and land-based slot machines. Online betting and most casino products will now face competition.
- Advertising: Gambling ads will be allowed but heavily restricted—particularly to avoid targeting vulnerable groups and minors.
- Enforcement: Unlicensed sites will be blocked through payment restrictions and blacklisting. Legal status will become a prerequisite for marketing and operating in Finland.
Facts: Finland’s Gambling Reform at a Glance
| Metric/Detail | Information |
|---|---|
| Current Market Size | ~€2.4 billion (total); ~€1.56 billion online |
| Gambling Participation | ~80% of adults annually |
| Foreign Operator Share (2025) | 41–50% of online GGR (~€520–590 million) |
| Licensing Launch Date | January 2027 (estimated) |
| GGR Tax Rate | 22% |
| Regulator | New gambling authority (2026) |
| Veikkaus Role | Retains lotteries, scratch cards, slots |
| Channelization Goal | Up to 90% within regulated market |
| Marketing Rules | Permitted with strict restrictions |
Foreign Operators: From Outsiders to Stakeholders
The reform will legalize the participation of international gambling brands—many of which already have deep roots in the Finnish player base. These operators, previously restricted to offshore access, will now be able to apply for local licenses. In doing so, they can market freely, partner with local businesses, and offer safer, locally compliant services.
Legal entry will also bring brand legitimacy and user trust—important elements in a country with high digital literacy and a strong emphasis on consumer protection.
“It’s not just about compliance,” says one operator executive based in Malta. “It’s about becoming part of the system and showing Finnish players that we’re here for the long haul.”
Competitive Shake-Up: What the New Landscape Looks Like
- More Players, More Choices: Analysts predict 30–50 operators will enter the market, bringing a mix of global brands and local startups.
- Intense Marketing Battles: For the first time, licensed operators can engage in limited advertising—expect a flurry of campaigns targeting tech-savvy Finnish players.
- Improved Player Safety: Licensing will require mandatory self-exclusion tools, spending limits, and identity checks.
- Revenue Repatriation: Gambling revenues previously lost offshore will now be taxed locally, potentially adding hundreds of millions to state coffers.
- Innovation: With competition comes variety—new betting formats, gamification, esports betting, and mobile-first experiences are expected to grow rapidly.
Channelization: The Ultimate Metric
A core goal of the reform is “channelization”—the proportion of gambling that takes place within the licensed ecosystem. Currently hovering around 50%, experts believe it could climb as high as 90% within just a few years, mirroring successful transitions in Sweden and Denmark.
That shift would not only benefit Finnish players—who gain access to safer, regulated environments—but also the state, which gains control over data, taxation, and player welfare.
Affiliate Marketing Ban: A Critical Blind Spot?
While Finland’s move toward a licensing model has drawn praise for its structure and consumer protection ambitions, one proposal is stirring serious concern among industry observers: a potential ban on affiliate marketing.
Under the draft legislation presented in spring 2025, all forms of affiliate promotion—including cost-per-acquisition (CPA), revenue-share deals, and even media referrals—would be prohibited. This blanket restriction would apply not only to unlicensed brands but also to licensed operators working with vetted Finnish partners.
Industry Alarm Bells
The affiliate ban stands in stark contrast to the practices of other regulated European markets like Sweden, the Netherlands, and Denmark—all of which allow affiliates under strict compliance standards.
“If the goal is high channelization, banning affiliates is counterproductive,” says one executive from a large Nordic affiliate network. “You’re removing a major incentive for operators to market responsibly—and handing visibility back to the black market.”
Indeed, affiliate marketers play a vital role in user education, responsible gambling messaging, and the redirection of traffic from unlicensed to licensed environments. Blocking this channel risks cutting off one of the most effective tools for steering Finnish players into the regulated system.
Contradiction in Reform Goals?
The contradiction is clear: the reform aims to boost consumer protection and channelization, yet disables a primary digital distribution mechanism that would help achieve those goals. If implemented, the ban could:
- Reduce legal visibility for licensed brands, making it harder for Finnish players to distinguish legal from illegal sites;
- Strengthen offshore operators, who often rely on aggressive SEO and brand recognition;
- Cut jobs and revenue in Finland’s affiliate marketing and media sector.
Several industry groups and legal scholars are urging the Finnish government to reconsider or at least modify this clause—perhaps by introducing an affiliate licensing system or strict oversight requirements.
Risk of Reform Undermining Itself?
While the core structure of Finland’s reform is sound—licensing, regulation, oversight—the affiliate marketing ban could significantly undermine its effectiveness in practice. Without affiliates to channel, educate, and convert Finnish players, the market risks becoming a patchwork of well-intentioned controls but poor real-world impact.
In short: affiliates are not just marketing tools—they are essential infrastructure in the modern iGaming ecosystem. Finland’s regulators may need to choose between rigid control and practical success.
Final Thoughts: A Bold, Timely Shift
Finland’s decision to dismantle its long-standing gambling monopoly signals the beginning of a new era—one shaped by transparency, innovation, and global best practices. While Veikkaus will continue to play a role, its monopoly status is ending, and a vibrant, competitive market is taking shape.
As 2027 approaches, all eyes will be on Finland—not just from operators and investors, but from other nations still weighing the benefits of gambling reform.
“This is Finland turning the page,” one industry expert noted. “It’s not about ending state involvement—it’s about modernizing it.”
Sources:
https://iclg.com/practice-areas/gambling-laws-and-regulations/finland
