Finland is set to overhaul its gambling landscape with the introduction of a dual-licence framework, confirmed in the government’s legislative proposal HE 16/2025. This change will shift the country away from its traditional state-monopoly model and toward a competitive, regulated market by January 1, 2027. The framework introduces strict new requirements for both business-to-consumer (B2C) operators and business-to-business (B2B) suppliers, fundamentally altering Finland’s gambling operations.
Key Features of the Dual-Licence Framework
The dual-licence model will establish two distinct types of licences: one for operators offering online gambling and one for suppliers providing the necessary software. The Gambling Game Licence (rahapelitoimilupa) will be available to B2C operators that offer online betting, virtual games, and casino-style gambling. These operators will need to apply for a licence in early 2026, and licences will be valid for five years. The tax rate for operators will be set at 22% of their Gross Gaming Revenue (GGR).
The second category, the Game Software Licence (peliohjelmistotoimilupa), is aimed at B2B suppliers involved in manufacturing, modifying, or installing gambling software. Operators will be required to use only licensed software providers, with compliance mandated by January 2028. Applications for this licence will open in early 2027, also with a five-year term and a 22% tax rate. This system is designed to ensure that all components of the gambling ecosystem are fully licensed and compliant with the new regulations.
The Separation of Veikkaus Oy
A significant aspect of the new framework is the structural separation of Veikkaus Oy, Finland’s state-owned gambling operator. To align with EU competition laws, Veikkaus will be split into two separate entities:
- The Monopoly Entity: This entity will retain exclusive control over lottery products, physical slot machines, and land-based casinos, operating under a 10-year monopoly licence.
- The Competitive Entity: A new company will be established within Veikkaus to compete in the newly opened online casino and betting markets. This entity will operate under the same conditions as private operators, subject to the 22% GGR tax rate and a five-year licence term.
This separation aims to create a fair, competitive market while preserving Veikkaus’s monopoly rights in certain sectors.
New Oversight and Regulatory Authority
The Finnish gambling market will be regulated by a new supervisory body, the Permit and Supervision Agency (Lupa- ja valvontavirasto). This agency will oversee the enforcement of the new rules and ensure compliance across both B2C operators and B2B suppliers. It will be funded through fees collected from the industry itself, reflecting a shift towards a self-sustaining regulatory model.
The introduction of mandatory B2B supplier licensing is expected to close loopholes that have allowed unregulated operators to operate in Finland’s grey market. Industry analysts argue that this stricter framework will help eliminate illegal or unlicensed activities, making it harder for offshore operators to enter the Finnish market.
Impact on the Finnish Gambling Market
The dual-licence framework marks a significant shift for Finland, moving away from its long-standing state-monopoly model towards a more competitive and regulated market. It follows increased scrutiny of Veikkaus and its operations, including allegations of anti-competitive practices and declining financial performance. With this reform, Finland aims to improve market transparency, accountability, and competition, benefiting both consumers and the economy.
The new licensing structure is expected to foster a more diverse and dynamic gambling market, with opportunities for both established operators and new entrants. However, operators and suppliers must prepare for the transition by ensuring compliance with the new licensing and regulatory requirements, particularly the stricter software licensing rules.
Looking Ahead to 2027
Finland’s new gambling framework is set to transform the industry by 2027, ensuring that only licensed and regulated operators can offer gambling services. As the country moves toward full implementation, both local and international operators will need to adjust to the new competitive environment. For now, the industry is awaiting the opening of application windows in 2026, when the first round of licences will be granted under this landmark reform.
Source:
Finland confirms dual-licence framework for 2027 market opening, gamblinginsider.com December 3, 2025
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