Finland gambling reform is on the horizon – in a significant move, Finland’s government has unveiled its plans to transform the country’s gambling landscape, paving the way for a regulated market by 2026.

End of Veikkaus Monopoly

The Ministry of the Interior has initiated a legislative project aimed at overhauling Finland’s gambling system. One of the most notable changes is the impending end of the state-owned Veikkaus’ gaming monopoly. Instead, private companies will operate under a new gambling licensing model.

The government’s Pursuit of Reform

This legislative program marks a significant step towards achieving the reform that the Orpo government has been advocating since the general election in April 2023. A preliminary analysis of the gambling industry and competing models, completed in April, informs the government’s strategy.

Finland Gambling Reform: What to Expect of in the Coming Years

Over the next two years, the government will develop legislative proposals to revamp the gambling system. These proposals will encompass various aspects, including the games covered by the licensing system, licensing fees, taxation, and tools for managing gambling.

Addressing Gambling-Related Issues

Additional regulations will be put in place to tackle gambling-related harm and to control and oversee the marketing of gambling activities, as this will constitute one of the most significant elements of the Finland gambling reform.

Collaboration for Reform

To facilitate this extensive reform, the government has established a political steering group and an intersectoral working group, which includes key ministries and authorities. The project will also seek input from experts in various fields, according to the first news and estimates relating to the very much anticipated Finland gambling reform project.

Timeline and Objectives

The Ministry aims to submit a proposal on the reform to parliament in the spring of 2025, with the project set to conclude on December 31, 2025. The government’s primary objective is to boost Finland gambling reform project and the channelization rate, which currently lags behind peer countries.

A ministry spokesperson emphasized, “The aim of the reform is to prevent and reduce the harm resulting from gambling and to improve the channeling rate of the gambling system in accordance with the government program.”

Two Pathways Forward

The preliminary study revealed that gambling outside the monopoly system has been on the rise and contributes to significant gambling-related harm. Two options were presented for reforming the gambling system: strengthening the existing gambling monopoly system or transitioning to a licensing model for online casino games and online betting.

End of Veikkaus’ Monopoly

The government’s choice is to end Veikkaus’ monopoly on online casino games and online betting while retaining its monopoly status on lotteries and retail slot machines. Under the government program, the activities in the competitive market and those remaining with Veikkaus will be separated into different companies within the same group.

Emphasizing Social Impact

The project will also explore the possibility of relocating gaming machines to controlled areas, as stipulated in the government program. The aim is to strengthen supervision of the gambling industry within the new licensing system, with a particular focus on mitigating the social impact of the changes, especially in terms of gambling-related harm.

Veikkaus’ Preparations

Earlier this year, Veikkaus announced its expectations to reduce jobs and close gaming arcades in anticipation of the end of the country’s gambling monopoly. The restructuring efforts may lead to the loss of approximately 240 jobs, and Veikkaus plans to decrease its gaming venues from 65 to between 40 and 50.

This comprehensive reform of Finland’s gambling landscape reflects the government’s commitment to modernizing its approach to gambling while addressing potential issues related to gambling harm and competition in the industry. Finland’s journey toward a regulated gambling market by 2026 is set to reshape its gaming landscape significantly.

A Transformative Era for Finland’s Gambling Industry on the Horizon?

The Finland gambling reform project and the country’s ambitious legislative project signifies a turning point for its gambling industry, setting the stage for a regulated market by 2026. The end of Veikkaus’ long-standing monopoly and the introduction of a licensing model for private operators represent a seismic shift in the country’s approach to gambling. With a strong emphasis on mitigating gambling-related harm and enhancing oversight, Finland’s government is determined to create a safer and more competitive gambling landscape.

As the reform progresses over the coming years, all eyes will be on Finland’s journey toward a more modern and accountable gambling market, in line with other Nordic markets.

The Danish Gambling Authority, known as Spillemyndigheden, has taken a significant step to safeguard players by successfully having 49 illegal gambling websites blocked. The move comes as part of the authority’s ongoing efforts to combat unlicensed gambling operations and ensure a safe and regulated gambling environment for Danish players. This recent victory marks the ninth instance in which the regulator has turned to the court to halt the activities of illicit gambling websites.

District Court Ruling and Ongoing Efforts

On July 14, 2023, the Copenhagen City Court ruled in favor of the Authority, upholding the authority’s bid to block 49 websites that were offering illegal gambling services. While the ruling has just been made public, the Danish Gambling Authority has been working diligently to tackle illegal gambling activities for years. Since 2012, the regulator has successfully blocked a total of 276 illegal sites, demonstrating its commitment to maintaining the integrity of the Danish gambling market.

Combating Illegal Gambling Operations

The targeted websites had been operating unlawfully, catering to Danish players without holding the required licenses. In Denmark, gambling operators are required to obtain a Danish license and display the Danish Gambling Authority’s label prominently on their websites and marketing materials. This labeling serves as a signal of legitimacy and compliance with the country’s gambling regulations. If the Authority identifies websites offering illegal gambling services, it initiates actions to address the violation and compel the operators to cease their unlawful activities.

Legal Measures and Stringent Actions

In instances where illegal gambling operators fail to heed the authority’s warnings, the Gambling authority takes legal action by seeking court orders to block these websites. Previously, the authority resorted to annual website blocks; however, it now plans to increase its efforts by blocking illegal websites twice a year. This proactive approach is a testament to the authority’s dedication to maintaining a secure online gambling environment.

Anders Dorph, the Director of the Danish Gambling Authority, emphasized the importance of their mission. He stated, “Ensuring that Danes are protected from illegal gambling operations that disregard consumer protection regulations set forth in the gambling legislation is a crucial responsibility of the Danish Gambling Authority.”

Upholding Integrity and Protection

The Danish Gambling Authority’s successful endeavor to block 49 illegal gambling websites underscores its commitment to player protection, integrity, and responsible gambling practices. By taking strong measures against unlicensed operators, the authority ensures that Danish players can enjoy online gambling within a regulated framework that prioritizes their safety and well-being.

As part of its ongoing efforts, the Authority’s vigilant stance against illegal gambling is instrumental in shaping a secure and compliant gambling landscape in Denmark.

The Enactment of Gaming Law (Amended)

On June 16, Malta’s President, George Vella, put his signature on Act No. XXI of 2023, more commonly known as the Gaming (Amendment) Act. This Gaming Law instructs courts to reject recognition or enforcement of any foreign judgments brought against Malta-licensed operators active within the European market.

Initially brought to the table on April 24, this law aims to protect Maltese operators from potential legal action regarding the provision of gaming services, provided these activities are sanctioned under their licence.

Numerous Malta-based companies, some of which are amongst the largest in the industry, deliver online gaming services across the European single market.

These operators maintain that their gaming operations comply with the Treaty of the Functioning of the European Union, a treaty that upholds the principle of free service movement across Europe.

Contesting Views and Legal Ambiguities

Nonetheless, European regulators and governments refer to the European Commission’s 2017 decision, which halted infringement procedures and complaints in the gambling sector, to claim their right to bar Malta-based enterprises from taking bets within their jurisdictions.

This unclear legal status, to be additionally intensified by the new Gaming Law, has been further exacerbated by several ongoing legal suits.

The Impact of German and Austrian Legal Actions

The enactment of this new legislation occurs amidst multiple ongoing lawsuits in both Germany and Austria. These legal disputes question the legality of the activities of specific operators within these nations.

The Austrian Supreme Court Verdict

The Austrian Supreme Court (OGH) concurred with the rulings of two lower courts and found that Flutter-owned PokerStars had been operating in contravention of the federal gambling monopoly. As a result, the court deemed all of PokerStars’ gambling contracts null and void. It thus validated the plaintiff’s demand for reimbursement. The plaintiff, represented by G&L Rechtsanwälte, had reported losses exceeding €28,000 over a span of five years.

German Court Orders Repayment

In Germany, the Frankfurt Higher Regional Court mandated an unidentified online casino to reimburse over €26,000 in losses to a player who gambled on the site before the regulation of online gambling in Germany. This verdict confirms the decision of a lower court.

Such precedents have paved the way for a multitude of claims against operators with past or current activities in these countries’ markets. One firm alone, AdvoFin, asserts that it has reclaimed €40m in player losses for 1,500 plaintiffs through its legal activities.

Operators’ Reactions to the New Gaming Law

Certain operators, such as Entain, have chosen to pay out in the event of losses. However, others have resisted this decision. Advofin has noted that 888-owned Mr Green and William Hill, along with Flutter-owned PokerStars, have not paid out for any judgments against them for a significant period.

This resistance has led to an influx of lawyers initiating legal proceedings in Malta, where many of these businesses are headquartered.

The Case of 888’s Non-Payment

In May, iGB communicated with an individual who had obtained a final non-appealable judgment against 888-owned Virtual Digital Services Limited. This subsidiary provides gaming in the European market where the business does not hold a local license. As 888 refused to pay out, the person hired a local Maltese firm to sue the operator.

In defense, 888 insists that its Maltese license permits it to provide services to European consumers. The operator stated, “This position is based on the fundamental EU principle of freedom to provide services.” It further added, “While the Austrian courts have challenged this, the group continues to contest the compatibility of the Austrian licensing regime with EU law.”

Conclusion: Unsettled Waters in European Gaming

This heated debate and the recently passed Maltese law underscore the ongoing conflicts within the European gaming sector. With the implementation of the Gaming (Amendment) Act, Malta is effectively trying to secure its position as a hub for online gaming operations. However, as numerous operators are challenging the authority of individual EU countries to regulate their activity, the situation remains volatile and unresolved.

As things stand, the recent actions taken by Malta will likely further complicate the already contentious and ambiguous legal landscape of online gambling within Europe. It remains to be seen how this will impact the relationship between European nations and Malta-based gaming companies, and indeed, how the future of online gaming will shape up in the European region.