Finland sends “business-friendly” draft law to European Commission

Finland submitted its updated draft gambling law to the European Commission (EC) on Friday (1 November), with the law receiving mostly positive feedback from industry experts.

The revised 357-page proposal, described by industry experts as notably more “business-friendly” than the initial draft, will now enter a three-month review process by the EC and other EU member states.

The law aims to open up the Finnish gambling market, shifting it from a monopoly model to a licensed one, while maintaining strict regulations to mitigate gambling-related harms. 

The country’s Ministry of the Interior spearheaded the legislative project, with a primary goal to “reduce gambling disadvantages and improve the degree of channelisation” of gambling activities in the country.

Key changes

Among the major updates, the revised draft introduces several business-oriented adjustments. 

Marketing restrictions have been eased, allowing offline brand marketing, while a blanket ban on bonuses has been lifted under certain conditions, permitting operators to offer bonuses to existing customers.

The new law also moves horse race betting from an exclusive rights model to a licensing model, effectively opening up this popular form of betting to competition.

Moreover, the timeline has been expedited, meaning licensed operators could potentially start by 1 July 2026, six months ahead of the original target date.

“More business-friendly”

Finnish gaming law expert Antti Koivula told NEXT.io: “Overall, the updated draft law is significantly more business-friendly compared to the initial draft released in July. 

“While I’m certain some commentators remain disappointed, it’s important to consider that the initial draft serves as the real benchmark for comparison. As a lawyer, I have yet to encounter a law that satisfies all interest groups.”

Koivula highlighted the eased marketing restrictions and accelerated timeline – provided that licensing and supervisory frameworks are implemented on schedule – as key positives.

However, he also pointed out an increase in the GGR-based annual supervision fee, which he said could create an additional tax burden of over 2% at certain GGR levels. 

“The tax rate has been left unchanged at 22% of GGR. However, the GGR-based annual supervision fee has been notably increased,” he explained.

The draft also includes several clarifications in its explanatory notes, although Koivula cautioned that many details remain to be defined in secondary legislation, leaving some aspects unresolved.

Drawing on Nordic models

Morten Ronde, a partner at law firm Nordic Gambling, observed that the draft law draws from regulatory frameworks in Denmark and Sweden. 

“Finland’s approach leans on well-established Nordic models, making it familiar to operators active in these markets,” he wrote on LinkedIn.

Ronde welcomed the moderate bonus allowance and reasonable tax rate but acknowledged that the term “moderate” has yet to be clearly defined. 

He added that the draft law shows “significant improvements, hinting at the potential for a practical and well-regulated gambling market.”

Influencer and affiliate marketing concerns

Meanwhile, Finnish iGaming consultant Pasi Koskela raised issues surrounding affiliate and influencer marketing. 

According to Koskela, the proposal specifically prohibits Veikkaus Oy, Finland’s state-owned gambling operator, from using influencer marketing. 

Public figures cannot share Veikkaus content on their personal platforms, even without compensation, although they may appear in Veikkaus’ official advertisements.

“However, public figures can be used as the face of advertisements and in content distributed by Veikkaus Oy.”

Additionally, the draft law prohibits affiliate marketing aimed at directing web traffic to gambling sites. 

Koskela raised concerns over the effectiveness of such restrictions, questioning whether traditional advertising channels or affiliate sites are more likely to inadvertently expose underage individuals to gambling promotions.

Speaking to NEXT.io, Koskela added: “People also won’t suddenly stop googling ‘online casinos’ when the new law takes effect, which means the traffic these affiliates have been directing to somewhat reputable and regulated casinos will now go elsewhere.

“This usually means unregulated casinos that anyone can create, potentially offering rigged games since there are no regulatory bodies enforcing best practices or compliance.”

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