"Finland's New Gambling Legislation: A Positive Step Forward, with Opportunities for Improvement"
Finland’s intention to modify its online gambling laws represents a noteworthy development in European gambling regulation. Among EU nations, Finland is the only one that employs a monopoly system for online gambling. The transition to a multi-licensing approach is a favourable step forward. This adjustment aligns Finland with the other EU countries, all of which have some type of licensing framework for online gambling already in place.
At TEGU, we back the recently suggested law, which we have been promoting for quite some time. History indicates that a single company cannot function effectively in the digital realm, and customers are most effectively served and safeguarded in a properly controlled yet competitive setting, where protective measures like deposit restrictions and self-exclusion are provided to users.
The proposed changes in Finland are a step in the right direction, but some adjustments are needed to make sure that the new licensing framework successfully achieves its objective of enabling Finnish citizens to engage with websites that have obtained local licenses.
Additionally, we find the suggested comprehensive restriction on bonuses worrisome. Although we agree with the idea of placing limitations on offering bonuses, a total ban will only make newly licensed operators less competitive compared to unlicensed ones. This may lead to players being directed towards unregulated websites, which would undermine the consumer protections that the legislation intends to create and reinforce.
In our reply to the government’s recent consultation, TEGU proposes two main enhancements:
- Include affiliates within the regulatory framework and permit social media advertising under specific guidelines. These are effective means for directing customers to licensed operators. Finland can leverage the potential of these marketing channels while upholding robust consumer protection standards by enforcing explicit regulations, including mandatory safer gambling notifications.
- “Rather than completely prohibiting bonuses, establish regulations for their prudent utilization. For instance, a more intricate method may encompass disallowing bonuses for players displaying indications of concerning conduct, or implementing explicit guidelines regarding the timing and manner of offering bonuses. This approach would enable operators to compete more competently with unlicensed platforms that will inevitably utilize bonuses to attract Finnish players from regulated online sites.”
These adjustments would bring Finland’s strategy more in line with the effective approaches observed in the EU, finding a middle ground between market competitiveness and strong consumer protection.
Moving to a regulated market is quite a challenge, but it’s one that brings advantages to all those concerned. TEGU is prepared to offer our knowledge and assist Finland in establishing a well-governed, competitive, and secure online gaming market.
