Finland is taking a significant step towards reshaping its gambling market, moving away from its state-controlled monopoly to a competitive licensing system. This shift is set to occur in 2027, with the introduction of a dual-licence framework aimed at ensuring greater competition and regulatory oversight. The new legislation, HE 16/2025, lays the groundwork for the transition and introduces new licensing requirements for both operators and game software suppliers.
The New Dual-Licence Model
At the heart of Finland’s forthcoming gambling reform is the creation of two distinct licences: one for operators and one for software suppliers.
The Gambling Game Licence (rahapelitoimilupa) will be issued to operators offering online betting and casino games such as slots, video poker, and bingo. Applications for this licence will open in early 2026, and the licences will be valid for five years. Operators will face a tax rate of 22% on their Gross Gaming Revenue (GGR), ensuring that both local and international operators are subject to the same financial framework.
Meanwhile, a Game Software Licence (peliohjelmistotoimilupa) will be required for B2B suppliers involved in the development or modification of gambling software. This new licensing regime will require operators to use only software from licensed suppliers, thus strengthening the integrity of the supply chain. The application process for this software licence will begin in early 2027, with full compliance mandated by January 2028.
Structural Changes for Veikkaus
To comply with European Union competition laws and ensure a fair and competitive market, Finland’s state-owned gambling operator, Veikkaus Oy, will undergo a major structural reform. The company will be divided into two separate legal entities:
- The Monopoly Entity: This entity will maintain exclusive rights over Finland’s national lottery, physical slot machines, and land-based casinos. The monopoly licence will be valid for 10 years, preserving Veikkaus’s dominance in these areas.
- The Competitive Entity: A separate division within Veikkaus will be formed to compete directly in the online gambling sector. This entity will operate under the same rules as private operators, including the 22% GGR tax rate and the five-year licence duration.
This restructuring ensures that Veikkaus can continue operating in its traditional sectors while allowing new players to enter the competitive online betting and casino markets.
Regulatory Oversight and Industry Impact
The Finnish gambling market will be overseen by a newly established supervisory body, the Permit and Supervision Agency (Lupa- ja valvontavirasto). This agency will be responsible for enforcing the new licensing requirements and ensuring that operators and suppliers comply with the regulations. It will be funded by fees levied on the gambling industry, making the system self-sustaining.
A key feature of the reform is the introduction of mandatory B2B supplier licensing. This is designed to create a more accountable supply chain, as operators will only be able to source software from licensed suppliers. The aim is to close any loopholes that have allowed unregulated operators to operate in Finland’s grey market.
The new regulatory framework is expected to limit the influence of offshore operators, who have historically taken advantage of Finland’s previous lack of oversight. By mandating supplier licensing, the new system will make it increasingly difficult for unlicensed companies to provide gambling services in the country.
What This Means for Operators and Suppliers
For operators, the move to a competitive licensing environment will bring both opportunities and challenges. With a more transparent market, operators will have the chance to compete for licences and offer a wider range of gambling products to consumers. However, the licensing requirements will also increase the regulatory burden, and operators will need to ensure compliance with all new rules, particularly the use of licensed software.
B2B suppliers will face similar challenges. Those wishing to operate in Finland’s newly regulated market will need to apply for a licence and adhere to the strict guidelines governing the supply of gambling software. Suppliers who fail to meet the requirements will be excluded from the Finnish market, significantly impacting their ability to do business in one of Europe’s largest gambling markets.
The Future of Finland’s Gambling Market
Finland’s transition to a dual-licence system represents a bold move toward modernising its gambling industry. The country is seeking to balance competition with regulatory oversight, ensuring that both consumers and operators benefit from a fair and transparent system. By 2027, Finland’s gambling market will likely be far more competitive, with a wider range of licensed operators and suppliers offering innovative products.
This new regulatory model also brings Finland in line with other European countries that have adopted competitive licensing systems, paving the way for greater integration within the EU’s single market for gambling services. As Finland moves closer to implementing these reforms, stakeholders in the gambling industry will need to prepare for a more rigorous and transparent regulatory environment.
Source:
Finland confirms dual-licence framework for 2027 market opening, gamblinginsider.com, December 3, 2025
