Finland’s gaming licence and the future of MGA casinos – Times of Malta

In Finland, gambling is currently undergoing significant changes as the country is planning to transition to a new open licensing system. In practice, what lies ahead is a process like what Sweden underwent a few years ago.

Discussing gambling in Finland, one cannot ignore the monopoly status of the Finnish gambling company Veikkaus and the challenges and opportunities it presents. However, recent discourse has increasingly shifted towards a new licensing system that could revolutionize the gambling experience for Finns.

The Finnish government programme has outlined that the new open licence model would come into effect on January 1, 2026. In this open licence model, the Finnish gambling market would open not just for Veikkaus but also for other operators. The Finnish gambling authority would then benefit from licensing fees and taxes.

The government's new direction to dismantle Veikkaus' monopoly and adopt a licensing system is a significant step towards a more open and competitive gaming market. This paves the way for foreign operators, such as those previously offering services to Finland under a Maltese licence.

Maltese online casinos have been crucial for Finnish players. Often located in Malta and operating under the Malta Gaming Authority, these casinos offer Finns a wide range of games, bonuses, and other benefits. Casinos operating from Malta, Estonia, and Curacao have become so popular in Finland that, according to estimates, over half of all money spent ends up with these gaming companies instead of the Finnish monopoly.

Sweden serves as an example of how a licensing system can operate. There, casinos must obtain a Swedish gaming licence to offer their services to Swedish players. With a similar model, the Finnish government could take a significant role in regulating both domestic and foreign online casino operations.

The purpose of the licensing model is that all companies offering gambling services to Finland would apply for a Finnish gaming licence. However, the question arises: how will the operations of Maltese casinos in Finland be regulated?

Several potential scenarios exist. The most radical would be blocking Finnish citizens' access to online casinos without an official Finnish gambling licence. Alternatively, the government might focus on blocking money transfers, which currently happens for foreign casinos. A third option is the emergence of a parallel market, where Finnish players could continue to use the services of online casinos operating under a Maltese licence.

Faced with these changes, MGA casinos stand at a crossroads. The Finnish market is appealing, but the terms and conditions of the licensing system could determine how many casinos will apply for a Finnish gaming licence.

The stringency of the licensing system is another significant unknown. The stricter the terms and constraints, the fewer casinos might see operating in the Finnish market as worthwhile, potentially impacting the tax revenue from the gaming sector.

It's expected that the Finnish licensing system and its surrounding legislation will be relatively strict. Most likely, advertising by casinos will be significantly limited by law. It's presumed that all major gaming operators will apply for the official Finnish licence, given the valuable Finnish player market. Smaller operators' actions in this new environment remain uncertain. Some smaller casino operators might initially stand by and observe the situation.

With the new gaming licence, one cannot overlook the role of affiliates or marketing partners. Websites like Kasinoseta.com have been crucial in bringing players to different online casinos.

In the Netherlands, strict regulations have been imposed on affiliates. For instance, they must ensure that over 95% of site visitors are over 24 years old. If Finland were to adopt similar rules, it could significantly impact affiliates' operations in the Finnish gambling market.

It's still unclear what marketing restrictions the Finnish gaming licence will entail. However, it's almost certain that affiliate marketing sites operating in Finland will face some form of regulation.

Affiliates in the gaming industry have operated without regulation as targeting gambling advertising towards Finland is prohibited. There are plenty of Finnish-language sites, but they operate from other countries and don't technically market their services to Finland.

Affiliates have played a significant role in marketing MGA casinos, especially since advertising services in Finland is challenging or nearly impossible. The role of affiliates is likely to decrease in the future if gaming companies with a Finnish licence gain more advertising options.

With the licensing change in Sweden, advertising restrictions decreased significantly. Advertisements for old MGA casinos with a new Swedish licence and other foreign gaming operators began appearing on television, billboards, and at sporting events. The popular casino and betting company Unibet became the official sponsor of Allsvenskan, Sweden's top-tier men's football league.

If advertising restrictions in Finland were removed or significantly relaxed, it could pave the way for extensive collaboration between of new gambling licence holders and Finnish elite sports.

Such a partial or full liberalization of advertising could have positive effects on, for example, Finland's sports market. With gaming companies becoming sponsors of sports teams and leagues, much more funding and resources would enter the sports market, potentially leading to higher standards of sports.

The Finnish gaming market has been grappling with change due to the dismantling of Veikkaus' monopoly and the potential introduction of a licensing system. This shift opens opportunities for foreign operators, such as MGA casinos, but also brings many challenges.

With the licensing model, Finland's gaming market could become more open and competitive, allowing both domestic and foreign online casinos to operate in the country.

The position of MGA casinos will be defined based on the conditions and restrictions the new licensing system imposes. It remains an open question whether MGA licenced casinos will be able to continue offering games to the Finnish audience after the new Finnish gambling licence system is implemented.

For comparison, in Sweden, players are allowed to access international MGA sites that are global and fully in English, if those sites do not actively market towards the Swedish audience.

At the same time, affiliates, who are essential marketing partners, may have to adapt to the new market situation.

One significant change could also be a relaxation in advertising regulations, which might increase collaboration between old MGA casinos with a new Finnish gambling licence and Finnish elite sports.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.gamcare.org.uk/

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Finland's gaming licence and the future of MGA casinos - Times of Malta