Finland iGaming Research Report 2026 — Past, Present, and Future (2026–2027 Licensing Transition)

Abstract: This research primer, Finland iGaming Industry — Past, Present, and Future (2026–2027 Licensing Transition), provides a comprehensive strategic overview of Finland’s historic shift from a state-run online gambling monopoly to a competitive, licensed iGaming market. Anchored in primary sources from Finnish government ministries, the Finnish Institute for Health and Welfare (THL), and Veikkaus, the report explores the legislative, regulatory, and commercial transformations catalyzed by the new Gambling Act signed on January 16, 2026. It analyzes Finnish player behavior, product preferences, responsible gambling priorities, and the structural evolution of the market set to open on July 1, 2027. Designed for global operators, investors, and industry stakeholders, the primer combines factual depth with forward-looking market scenarios and a step-by-step market entry playbook.

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Executive Summary

Overview Finland iGaming Industry Primer — Past, Present, and Future (2026–2027 Licensing Transition): In January 2026, Finland enacted a historic reform of its gambling law that will end the decades-old online monopoly of the state-owned Veikkaus Oy and transition to a partially license-based system by mid-2027. This primer examines Finland’s iGaming industry – past, present, and future – through the lens of this reform. We detail what is changing (and what isn’t) as Finland opens its online gambling market to private operators, the new regulatory architecture and obligations, and the expected impacts on players and the industry. Key takeaway: Finland is adopting a “dual model” similar to Sweden and Denmark – lottery and land-based machine games remain a state monopoly, while online betting, casino, and bingo games will be offered by multiple licensed companies under strict supervision. The change is driven by concerns over rising offshore gambling and stagnant problem gambling rates, with the goal of channeling Finnish play to domestically regulated services.

Timeline: The new Gambling Act was approved by Parliament on 16 Dec 2025 and signed into law on 16 Jan 2026. Licensing will roll out in phases. From 1 March 2026, eligible companies can apply for Finnish gambling licenses (B2C). However, Veikkaus retains its exclusive rights until 30 June 2027, during which no new operators may launch or advertise gambling products. The licensed market “go-live” is 1 July 2027, when approved operators can begin offering services to Finnish customers. At the same time, regulatory authority shifts from the Police Board to a newly established independent Finnish Gambling Supervisory Authority (tentative name) on 1 July 2027. A year later, on 1 July 2028, a further requirement kicks in: all online gambling software used in Finland must be sourced from licensed suppliers (B2B licensees) – a measure to ensure regulatory oversight of platforms and game systems.

Market Structure: Under the new regime, Veikkaus’s online monopoly will be abolished for key product verticals. Private operators (domestic or foreign-owned companies meeting Finnish licensing criteria) will be able to offer: sports and horse race betting, online casino table games, online slots, online bingo, and related digital games of chance. Meanwhile, Veikkaus will retain monopoly in “lottery-type games” (e.g. Lotto, Eurojackpot, keno), scratch cards, and all physical slot machines and casino operations. In practice, this means Finns will, from 2027, have legal alternatives to Veikkaus for online sports betting and casino gaming, but lottery draws and instant win games (and the iconic grocery-store slot machines) will still only be provided by Veikkaus. This mixed system is explicitly modeled on the successful Nordic precedents where state lotteries coexist with licensed online markets. Notably, Veikkaus is allowed to compete in the open segments through a subsidiary – the law permits a company in the Veikkaus Group to obtain general gambling licenses, provided its competitive activities (player accounts, websites, finances) are kept separate from its monopoly operations. All licensed operators, including any Veikkaus affiliate, will operate on a level playing field in terms of taxes, game restrictions, and compliance rules.

Regulatory Objectives: Finland’s government has framed the reform around two main goals – harm prevention and channelization (i.e. steering players to the safe, regulated market). These twin aims are sometimes in tension, and the Act reflects a compromise. On one hand, authorities are introducing robust responsible gambling mandates (described below) to curb addiction and social harm. On the other, they are loosening the absolute monopoly in hopes that attractive legal alternatives will recapture the estimated 250,000 Finns who gamble on offshore sites (about 7% of adult population). By ending the monopoly’s online product limitations, regulators believe a greater share of Finnish gambling will occur under domestic oversight – improving channelization rate, which currently has stagnated (offshore play was 7% in 2019 and remained ~7% in 2023 despite minor measures). A higher channelization rate means more gambling activity would fall under Finland’s consumer protections, problem gambling interventions, and tax net. The Government has explicitly tied the reform to harm reduction goals, but also acknowledges the risk that expanding the legal market (and permitting more advertising) could in itself create new gambling participation and potential harms. To balance this, the law builds in stronger controls on how games are offered and marketed, rather than simply hoping market forces solve everything.

New Licensing Framework: The Finnish licensing model comprises two main license categories:

• Gambling License (B2C) – required for any operator offering betting, online casino games, online slot machines, or online bingo to Finnish customers. Applicants can be domestic or international companies, but must meet Finland’s “fit and proper” standards (honesty, financial stability, no history of legal violations in gambling, etc.). License applications open on March 1, 2026, and will be reviewed by the National Police Board initially. The law does not cap the number of B2C licenses – any firm meeting requirements may receive one. Each license is issued for a fixed term (maximum 5 years).
• Gambling Software License (B2B) – a novel license for suppliers providing gambling platforms or software (e.g. betting engines, RNGs, game content, data feeds) to Finland-facing operators. This targets casino game studios, sportsbook providers, and other iGaming technology vendors. Applications for B2B licenses begin July 1, 2027. From July 2028 onward, B2C operators may only use software from licensed B2B providers. The intent is to extend regulatory oversight and accountability throughout the supply chain. B2B licenses are also up to 5-year terms.

In addition, an Exclusive License will be granted to Veikkaus for the monopoly products (lotteries, scratch cards, etc.), each for a term of 10 years. Veikkaus must pay the state an exclusive-rights fee for this license (to prevent undue competitive advantage from its monopoly profits).

All licensees will be subject to annual supervision fees and oversight by the regulator to fund and enforce the system. The National Police Board will serve as the interim licensing authority through June 2027, after which a dedicated Finnish Gambling Supervisory Authority takes over licensing, audits, and enforcement duties. The new agency is expected to scale up staffing and technical capability significantly compared to the current oversight department, given the broader scope of supervising multiple operators.

Player Protections and Responsible Gambling: The reform introduces some of the strictest responsible gambling (RG) requirements in Europe, building on measures already in place in Finland’s monopoly. Mandatory identification for all forms of gambling is a cornerstone: all players must register and verify their identity (through strong electronic ID such as bank credentials) before play. This extends an existing practice – Veikkaus already requires ID for online play and as of 2021 for physical slot machines – and ensures that even at land-based venues or when purchasing lottery tickets, identity can be verified and play tracked. The universal ID requirement enables several protective tools:

• A centralized self-exclusion system covering all licensed operators. By 2027, Finnish consumers can enroll in a single self-exclusion register (likely an expanded version of Veikkaus’s current Peluurii system) that will prevent them from accessing any licensed gambling site. Licensees must integrate with this system; honoring self-exclusions is mandatory.
• Self-exclusion by category: Beyond full exclusion, players can opt to block themselves from specific game types (e.g. only slots, or only betting) across all operators. This granular control acknowledges that some individuals may seek to restrict their highest-risk behavior while continuing others.
• Personal deposit limits: Each player, upon creating an account with a licensed operator, must set daily and monthly money transfer limits (i.e. deposit limits) for that operator. These caps limit how much one can load into the gambling account per day or per month. While there is no single universal loss limit across all platforms (a proposal for shared limits was debated but not adopted), the requirement of per-operator limits ensures every site has a constraint on spending. Finnish regulators opted not to impose a government-set mandatory loss limit for all players; instead, players choose their own limits (with default suggestions) as part of account setup. This mirrors practices in Sweden and reflects a compromise to maintain competitiveness (universal strict loss limits could push high-spenders to unlicensed sites).
• Automated monitoring and intervention: License holders must monitor player behavior for signs of problematic play (e.g. rapid losses, play at unusual hours, signs of chasing). If certain risk thresholds are crossed, operators are obligated to intervene – ranging from providing pop-up warnings, to mandatory cooling-off periods, or direct outreach with responsible gambling messaging. The Act mandates that operators have a documented self-supervision plan detailing how they detect and handle suspected problem gambling.
• Game design controls: Although specifics are delegated to secondary regulations, the government has signaled that online games will face new technical restrictions to curb excess play. These may include maximum bet limits, slower game speeds (minimum spin durations for slots), a ban on autoplay, and periodic forced breaks after continuous play. Such rules are expected to be set via decree in 2026–27 and will apply equally to Veikkaus’s online games and those of new licensees, ensuring a consistent level of safety features (with a possible exemption for peer-to-peer games like poker). For perspective, Veikkaus already voluntarily implemented a €500/day loss limit for online casino and 15-minute hourly loss checks on slots; now these kinds of limits could become regulatory standards for all operators.

Crucially, the age limit remains 18 for all gambling. Some legislators pushed to raise it to 20 for certain games, but this was not included. The new system will maintain Finland’s existing norm that minors (under 18) cannot buy lottery tickets or gamble in any form, and this extends to stricter ID checks to enforce it. All marketing and venues must clearly indicate the 18+ limit, and it’s an offense to allow underage gambling (as was already the case).

Marketing and Advertising Rules: With private operators entering, Finland is cautiously liberalizing gambling advertising but with heavy restrictions to prevent the excesses seen elsewhere. Under the new Act, marketing of licensed gambling is legal only within defined bounds:

• Permitted channels: Traditional media like television, radio, and newspapers are allowed outlets for gambling ads. Online, a licensee may market on its own website or official social media pages, but such content must not be “interactive” – meaning comments or direct engagement with users should be disabled. This ensures operators can disseminate information but not engage in personalized or real-time promotion on social platforms.
• Prohibited channels and methods: Third-party or surrogate advertising is largely banned. Influencer marketing is explicitly forbidden – operators cannot pay or incentivize individuals (e.g. streamers, celebrities) to promote their gambling services on personal channels. Affiliate marketing – where media or individuals earn commission for referring players – is effectively disallowed under the new rules. This is a significant departure from many markets; Finland is shutting down what was a common digital marketing avenue, reflecting a desire to avoid aggressive tactics and opaque partnerships. Additionally, telemarketing (phone calls or SMS to consumers) is banned for gambling, as is any form of unsolicited direct marketing (e.g. spam emails) outside a customer’s opt-in.
• Content restrictions: All advertisements must include a clear 18+ age warning and information about problem gambling help (e.g. via the national helpline or website). With the new law, ads (except brief radio spots) must also display the operator’s license details and the regulator’s identity to distinguish licensed offerings. Advertising must be “moderate and responsible” – this general clause means ads cannot glamorize gambling, make false claims about odds, or target emotions of vulnerable individuals.
• No targeting minors or vulnerable groups: Marketing may not be directed at minors in any way. This includes obvious rules like no ads on children’s TV or in schools, but also subtler points: no using cartoon imagery or youth-oriented themes that could appeal to those under 18. Advertisements or sponsorships can’t appear in media or events primarily aimed at minors. For example, a gambling company cannot sponsor a junior sports league or advertise at a family festival.
• Sponsorship rules: Sponsorships by gambling firms are allowed (e.g. an operator sponsoring a sports team or event), but with conditions. Companies cannot sponsor individuals who are minors, and any sponsorship of events must not directly promote gambling to the event’s audience. Essentially, brand logos might appear, but you wouldn’t see inducements to gamble as part of the sponsorship activation. The law intends to prevent a repeat of scenarios in other countries where gambling logos saturated sports events without restraint. In Finland, expect a more subdued approach: gambling sponsors will be present but under scrutiny to avoid targeting youth or encouraging harmful play.
• Bonus and incentive bans: Perhaps the most striking marketing restriction is a near-total ban on the typical promotional incentives of the industry. The new Act prohibits welcome bonuses, free bets, free spins, cashback, refer-a-friend, and other bonus offers commonly used to attract or retain players. The only exception is a form of “bonus play money” that may be given to existing customers for retention purposes (for example, a small amount of credits on a anniversary or as a goodwill gesture), but this is tightly regulated – it must be of modest value, not tied to deposits or losses, have a low wagering requirement (≤5x) and cannot be directly withdrawable as cash. Welcome bonuses are outright banned, meaning new players cannot be enticed with any financial incentive. Likewise, loyalty programs or VIP schemes that reward high spenders (through points, gifts, or better odds) will be prohibited, since they incentivize greater gambling intensity. These measures, which go further than even Sweden’s strict bonus rules, are aimed at eliminating marketing practices that encourage excessive or impulsive play. While they may make Finland a less immediately attractive market for operators (who often rely on bonuses to compete for customers), policymakers judge that a healthier channelized market is possible without these inducements – emphasizing trust, product quality, and brand reputation instead.

In summary, Finland’s marketing regime post-reform will be one of the most constrained in Europe: advertising is allowed but only in limited channels and formats, with extensive required disclaimers, and many common promotion tactics (affiliates, influencers, bonuses) are off-limits. Operators will need to focus on straightforward advertising and organic brand building. The regulator will have authority to police marketing compliance and issue fines or ultimately suspend licenses for violations. All marketing infractions (and any unlicensed advertising) can also trigger injunctions with penalty fines, which the regulator is obliged to publicize – effectively naming and shaming offenders.

Anti-Money Laundering (AML) and Know-Your-Customer: Finland is applying rigorous AML standards to the new licensees in line with EU directives and its national AML Act. All gambling license applicants must demonstrate a comprehensive AML and counter-terrorist financing program as part of their licensing process. This includes:

• A formal AML policy and risk assessment, tailored to the gambling business, identifying potential risks (e.g. use of gambling to launder funds) and mitigation measures.
• Detailed customer due diligence (CDD) procedures: verification of identity (which dovetails with the mandatory strong ID for players), age verification, and for higher-risk customers, additional checks (source of funds for large deposits, politically exposed person screening, etc.).
• Ongoing monitoring of transactions: operators must have systems to detect suspicious betting or cashflow patterns and report suspicious activity promptly to Finland’s Financial Intelligence Unit (the National Bureau of Investigation’s FIU). For example, large deposits followed by minimal play and quick withdrawal would need flagging.
• An internal AML compliance officer and staff training: licensed firms will likely need to appoint an AML responsible manager and ensure all customer-facing or payments staff are trained to follow CDD and record-keeping procedures.
• Record-keeping and reporting: The Act makes gambling operators subject to the same AML reporting obligations as financial institutions, meaning they must file suspicious transaction reports and maintain records for a set period (5 years or more as required by law).

By requiring AML compliance at licensing, Finland ensures only serious, well-governed operators enter the market. Post-licensing, the Gambling Supervisory Authority will coordinate with the AML supervision (likely the Regional State Administrative Agency or FIN-FSA which oversee AML in Finland) to audit and enforce these requirements. Notably, strict KYC also helps ensure that self-exclusion and limit enforcement are effective (you can’t skirt the system with multiple anonymous accounts if everyone is verified).

Taxation and Economic Impact: The reform changes how gambling revenue is taxed in Finland:

• The existing “lottery tax” on gambling revenue (Veikkaus currently pays a 12% tax on GGR) will increase to 22% on GGR for all licensed gambling services. This essentially functions as a gross gaming revenue tax similar to other jurisdictions. Veikkaus’s monopoly products will also presumably be subject to the new 22% tax (the Act removes the special low rate, equalizing the field). The government expects that even with a moderate channelization, the higher tax rate could raise equivalent or greater tax income than the current system.
• In addition to gambling tax, licensed operators based in Finland will pay the standard corporate income tax (20%) on profits. Foreign companies would be operating via Finnish subsidiaries or permanent establishments and thus also subject to Finnish corporate tax on local gambling profits.
• For players, an important change: Winnings from unlicensed gambling will become taxable income (if the game is provided from within the EU/EEA to Finland). Currently, Finnish law (like many EU countries) allowed tax-free winnings from EEA gambling providers. After the reform, if a Finnish player wins money on a site that is not licensed in Finland, that win will be subject to Finnish tax (likely as capital income at 30% rate). This creates a disincentive for players to remain on offshore sites – any “grey market” wins could lose a chunk to taxes, whereas winnings on licensed sites (or on Veikkaus or PAF, which are licensed or specifically exempt) remain tax-free. This move is a soft enforcement tool to aid channelization without directly blocking sites.
• Winnings from licensed operators in Finland (and possibly those from other EEA lotteries not targeting Finland) remain tax-exempt to players. As per usual, Veikkaus’s lottery payouts to winners are untaxed, and that principle will extend to any licensed operator’s payouts (the operator has already paid the gambling tax).
• Revenue distribution: Under the old monopoly, Veikkaus’s profits (after tax) were earmarked to fund sports, arts, science, and social causes. The new system changes this funding model – going forward, tax revenue from gambling will go into the state budget, and subsidies to beneficiary sectors will be decided through normal appropriations. The government has planned offset funding to these sectors to replace the direct Veikkaus subsidies (approximately €700 million annually combined from Veikkaus profits and lottery tax). Essentially, Finland is shifting from a earmarked model to a tax-and-budget model. This reduces potential conflict of interest in maximizing gambling profits for good causes, but it means those causes rely on budget decisions rather than a guaranteed gambling stream.
• Åland’s Paf: Special note is given to Paf (the regional government-owned gambling operator in Åland, which currently can legally serve Åland residents and Finnish players on cruise ships, and has also attracted some mainland online players). Paf will be allowed to apply for a mainland license like any other company. If it does, the law stipulates that any gambling tax and corporate tax paid by Paf from mainland operations would be remitted back to Åland’s government. This respects Åland’s autonomy and tax equalization agreements. Paf’s participation is an intriguing element – it already has brand recognition and a responsible gaming ethos, so it could be a strong competitor in the licensed market. In 2023, 3% of Finns played on Paf’s online games, a share that grew from 2% in 2019, even as other offshore play held flat. Paf joining the licensed system could convert those players into “legal” status and perhaps grow its share further under regulation.

Enforcement Against Unlicensed Gambling: A critical question is how Finland will handle the remaining offshore black market after licensing. The new law continues to prohibit any gambling targeting Finland without a Finnish license, as well as any advertising thereof (this was already illegal under the old Lottery Act). The National Police Board (and from 2027 the new Authority) retains the power to issue injunctions against unlicensed operators and marketers – for instance, ordering them to cease offering games to Finns, or cease advertising in Finland. If such an injunction is ignored, the authority can impose a conditional fine (i.e. a monetary penalty that accrues if non-compliance continues). However, these fines are only effective if the entity has assets or representatives in Finland. Many offshore operators don’t, making such injunctions more symbolic.

Significantly, Finland has not built in internet blocking or new payment blocking provisions at the outset. Earlier drafts considered network-level blocks (IP or DNS blocking of unlicensed gambling sites), but the Government chose to hold off on these controversial measures. The official stance is to monitor the market and, if channelization goals are not met, revisit blocking in the future. As for payments, a 2022 amendment (effective 2023) already authorizes the Police Board to maintain a blacklist of unlicensed gambling companies for banks to block transactions to. This will remain in effect, but its impact so far has been limited (offshore sites use alternative payment methods or intermediaries to circumvent straightforward bank card blocks). No additional payment blocking enhancements are in the new Act.

Thus, in 2027, Finland will rely on a combination of:

• Administrative penalties: going after any known Finnish-facing business entities that operate without a license. Notably, if a company that operated illegally in Finland in the past now seeks a license, their past misconduct could be grounds to deny the license. This creates an incentive for major grey-market operators to cease unlicensed activities now and demonstrate compliance if they intend to apply.
• Taxation of winnings: as described, making players self-report and pay taxes on overseas gambling wins, reducing the appeal of those sites.
• Player education: clearly differentiating licensed sites (which will carry a Finnish license badge and offer Finnish-language customer support, etc.) from unlicensed ones, and emphasizing the consumer protections only licensed sites guarantee (legal recourse, self-exclusion, etc.).
• Continuation of payment blocks: banks will continue blocking transactions to known unlicensed operators as per the enforcement list maintained by authorities. This may intercept some casual players attempting credit card deposits on foreign sites, though workarounds exist.
• Transparency and stigma: the new regulator must publish its enforcement actions (e.g. naming sites that have been issued injunctions or payment block orders). This public naming could deter local media from inadvertently advertising those brands and inform consumers that those sites are operating outside the law.

If these measures prove insufficient, the Act empowers the Government to consider further steps. The Finnish authorities will compile data on how much gambling is still flowing to unlicensed sites after 2027, and Parliament explicitly instructed the Government to ensure adequate resources for supervision and harm prevention, and to be ready to deploy payment or network blocks if necessary. The hope is that with attractive legal options and strong responsible gambling features, the majority of Finnish players will choose licensed sites, making draconian blocks unnecessary. Still, this is a watch-point: the absence of upfront IP blocking is a bet that channelization can be achieved through carrots (legal offerings, tax-free winnings, consumer trust) rather than sticks.