📋 Tender Overview
The Ministry of the Interior will send a draft government proposal for a new Gambling Act for comments. The reform of the gambling system is based on the Government Programme. Veikkaus Oy's exclusive right to organise gambling would end in betting games and online slot machine and casino games. In accordance with the Government Programme, these games would be opened to competition through a licensing model.
The proposal was prepared by a working group led by the Ministry of the Interior, whose work was steered by a political steering group consisting of State Secretaries. The comment period ends on 18.8.2024.
Today, Veikkaus Oy has the exclusive right to offer gambling in Finland. However, a significant proportion of online gambling is outside the exclusive rights system. Companies operating outside the system offer online gambling that is not subject to national regulation or regulatory supervision.
Some gambling would be opened up to competition
The proposed act would lay down provisions on licensed gambling operations and their supervision in Finland. The licensing system refers to a model in which gambling companies could apply for a licence from the licensing and supervisory authority to operate gambling services in Finland. In accordance with the Government Programme, the aim is to prevent and reduce the harmful effects of gambling and to improve the channelling of demand to the gambling system regulated by law.
Gambling could be carried out with an exclusive licence or a gambling licence. In addition, the provision of gaming software used for gambling would require a gaming software license. Licence holders should pay an annual fee to the supervisory authority.
The exclusive licence would remain for lotteries, lottery games, toto games, as well as physical slot machines and casino games. In practice, this would mean that Veikkaus would have exclusive rights to, for example, lottery games and scratch cards.
The exclusive rights operations remaining with Veikkaus and Veikkaus' operations in the competitive market would be separated into different companies within the same group. The Government would decide on the compensation that Veikkaus would have to pay annually to the State for the exclusive licence.
The proposed legislation would allow the state owner greater leeway in future ownership decisions made by Veikkaus Oy. The State would have the opportunity to dispose of part of its ownership in Veikkaus Oy if this were considered justified in the future from the perspective of the development of the State's shareholder value. The proposed legislation would not automatically lead to a reduction in state ownership.
Gambling could be offered and marketed within the framework of the law
The Gambling Act would include provisions on player registration and verification of identity and place of residence. The Act would also lay down provisions on the age limit for gambling, gaming through a gaming account and other forms of authenticated gambling. The draft proposal proposes the introduction of a centralised self-exclusion register. It would allow a player to self-exclude from gambling offered by all licensees if they so wished.
The Act would also lay down provisions on the marketing and sponsorship of gambling services and prohibited marketing methods. Licensed gambling companies would be allowed to advertise their company and gambling in different channels, subject to certain restrictions. For example, commercial cooperation with social media influencers on their own accounts would not be possible.
The amount, scope, visibility and frequency of marketing should be moderate and necessary to steer gambling demand towards licensed gambling activities. Outdoor marketing of gambling services with a high risk of harm would be prohibited. Physical slot machines and casino games that remain exclusive to Veikkaus should not be marketed at all. Marketing should not target minors or otherwise vulnerable persons.
Supervision would be transferred to a new agency
Currently, gambling operations are supervised by the National Police Board. In future, the supervisor would be the future Licensing and Supervision Agency, which operates in the administrative branch of the Ministry of Finance, and it is proposed that it have diverse powers. The authority could intervene in illegal activities by imposing administrative sanctions. The execution and marketing of gambling services could be banned, the licence revoked and certain decisions made by the authorities could be enhanced with a conditional fine. The supervisory authority would have the right to make test purchases in order to carry out the supervisory task laid down by law.
The supervisory authority could also impose an administrative fine or penalty payment for unlawful activities. In addition, the authority would supervise that operators comply with legislation to prevent money laundering and terrorist financing.
The Act would also lay down provisions on restricting game offerings and marketing outside the licence system by blocking online and payment transactions. In this way, demand could be directed towards licensed gaming activities and the harmful effects of gambling could be better combated.
The Gambling Act would continue to lay down provisions on the task of the Ministry of Social Affairs and Health to monitor, investigate and assess gambling and the harm caused by it. The National Institute for Health and Welfare would implement tasks in accordance with the mandate of the Ministry of Social Affairs and Health. Government subsidies could be granted for the prevention and reduction of gambling incidents.
The new system will be introduced in stages
The aim is to submit the government proposal to Parliament during the spring session of 2025. The new gambling system would be introduced in stages. Licences entitling to operate gambling services could be applied for from the beginning of 2026.
