Parliament Ends Monopoly Era

Finland has formally approved a new Gambling Act, dismantling its long-standing monopoly model and introducing a licence-based system for online casinos and fixed-odds betting.

Under the reform:

  • Competitive licensing opens for online gambling
  • Veikkaus retains control over lotteries, scratch cards, and certain land-based games
  • Applications begin next month
  • Licensed operators may launch and advertise from July 1, 2027

Oversight will shift to the newly created Finnish Supervisory Authority, which will manage compliance and enforcement.

Tax Pressure to Drive Channelization

A key change affects players using offshore platforms. While Finnish residents are not prohibited from accessing unlicensed sites, winnings from those operators will now be taxed as personal income.

The policy aims to:

  • Increase channelization toward licensed brands
  • Strengthen regulatory oversight
  • Align consumer behavior with national licensing goals

For operators currently serving Finnish traffic under a Malta licence, this signals a decisive policy shift.

Licensing Requirements and Costs

The new framework allows operators from the European Economic Area and beyond to apply, provided non-EEA applicants appoint an EU-based representative.

Applicants must demonstrate:

  • Robust anti-money laundering systems
  • Strong internal controls and governance
  • Clear player protection protocols
  • Transparent reporting and marketing compliance

Financial conditions include:

  • €29,000 application fee
  • €1,120 for amendments or additional authorisations
  • Annual supervisory fees ranging from €4,000 to €434,000 (based on GGR)
  • 22% tax on gross gaming revenue

Operators tax-resident in Finland will also pay corporate income tax on profits.

Malta Licence No Longer Enough

The reform reinforces a clear legal stance: an EU-issued licence does not automatically grant access to another member state.

This interpretation aligns with rulings from the Court of Justice of the European Union, which allows member states to restrict cross-border gambling services on public policy grounds.

For holders of a B2C licence from the Malta Gaming Authority (MGA), the implications are direct:

  • Targeting Finnish players after 2027 will require a local licence
  • Non-compliant operators risk marketing bans
  • Sanctions could impact future “fit and proper” assessments

Enforcement authority will include powers previously exercised by Finland’s National Police Board, now integrated into the new regulatory structure.

A Broader European Trend

Finland’s reform mirrors a wider European shift toward territorial licensing and tighter regulatory control.

The practical impact:

  • Fewer markets accessible solely under an MGA B2C licence
  • Growing reliance on local licences or Recognition Notice structures
  • Increased compliance costs across multiple jurisdictions

The trend extends beyond Europe. Markets such as Chile are also preparing national licensing systems, narrowing the scope for cross-border models.

Despite the contraction of purely cross-border targeting, the MGA licence remains strategically relevant. Operators continue to value Malta for:

  • Regulatory credibility
  • Tax environment
  • Access to banking and payment infrastructure
  • Skilled workforce

In its latest annual report, the MGA confirmed a sharp rise in Recognition Notice certificates, issuing 62 approvals — a sign that multi-licensing strategies are becoming the norm.

Summary

Finland’s gambling reform marks the end of its monopoly model and introduces a strict licensing regime effective from 2027. For Malta-licensed operators, cross-border targeting will no longer suffice. Local authorisation, tax compliance, and regulatory alignment will become mandatory, reflecting a broader European move toward territorial control of online gambling markets.