Finland is set to launch a major overhaul of its gambling market, which will take effect on July 1, 2027. The new system introduces a licensing model, breaking away from the current state-run monopoly held by Veikkaus Oy. This move will create space for greater competition, particularly in the online gambling sector, where Finnish players have increasingly turned to unregulated operators. However, the transition from a monopoly to a regulated market is a careful process that will take time to fully implement.

New Regulatory Body to Enforce the Law

A significant shift in this reform is the creation of a new supervisory authority, which will take over the role of regulating Finland’s gambling industry from the National Police Board. Operating under the Lupa- ja valvontavirasto (Permit and Supervision Agency), the new body will be granted broader powers than its predecessor. Unlike the current system, which mainly relies on criminal law, the new authority will be able to take swift administrative action, including imposing substantial fines on operators who fail to comply with market regulations.

According to PR Newswire, this regulatory body will have the power to enforce strict player identity verification protocols, which are expected to become the primary compliance standard in the sector. As part of this initiative, “instant play” casinos, or “pikakasinot” in Finnish, will be subject to strict Know Your Customer (KYC) checks, leveraging Bank-ID technology for instant authentication. This approach is designed to prevent underage gambling and money laundering, and it is expected to consolidate the market around this verification technology.

The Finnish government’s primary goal is to increase the share of gambling occurring within the regulated market, known as the “channelling rate,” while simultaneously tightening harm prevention measures. While Veikkaus will maintain its monopoly over lottery-type games, scratch cards, and physical slot machines, online betting, casino games, and money bingo will now be open to competition from licensed operators.

This reform comes in response to the significant shift of Finnish players toward offshore gambling sites, which are often less regulated, leading to weaker player protection and lost tax revenue. The Ministry of the Interior has been clear about the need to bring these activities back into the regulated space, where operators will be subject to the new rules and safeguards.

Penalties, Content Removal, and Domain Blocking

The newly established regulatory body will have the power to issue large fines for non-compliance, revoke licenses for serious violations, and order the removal of illegal gambling content from the internet. Operators that breach license conditions, marketing rules, or fail to meet player safety standards could face severe penalties, including the revocation of their license. This shift marks a new era for Finnish gambling regulation, where operators can expect swift action from the regulator.

For the first time, the new authority will have the ability to order service providers to remove unlicensed gambling content or marketing materials. In more severe cases, the agency can even have domain names removed from the .fi register, effectively eliminating non-compliant sites from the Finnish internet landscape. As Tommi Korhonen, CEO of Bonusetu, explains, “The new agency isn’t just an administrator; it is a policeman with the power to fine, block, and shut down. For operators, this means that compliance technology – specifically regarding player ID and money laundering – is no longer just an operational detail, but a license-critical necessity.”

Gambling companies will be able to begin submitting license applications in March 2026, with the full competitive market set to begin in July 2027. Veikkaus will retain its monopoly rights until that time, under the supervision of the National Police Board. Following this transition period, the new supervisory agency will take over both regulatory and licensing duties, including overseeing gambling software providers.

A significant aspect of Finland’s new gambling landscape is player protection. The reform mandates mandatory identification for all players, including age verification, to ensure compliance with self-exclusion and responsible gambling measures. Additionally, players will be required to set limits on how much they can deposit into their accounts on a daily and monthly basis. A centralized self-exclusion system will allow players to block themselves from all licensed operators, providing a unified approach to harm prevention.

The new law also aims to curb excessive promotional practices in the gambling industry. It prohibits credit-based gambling, free games, and heavy discounting, while narrowly defining acceptable bonus play conditions. These changes are aimed at reducing the aggressive marketing tactics that have been a hallmark of the online gambling sector, focusing instead on more responsible promotional practices.