Finnish MP behind liberalisation push raises concerns over regulator’s readiness

Finnish Member of Parliament Sinuhe Wallinheimo of the ruling National Coalition Party has expressed concern to iGB about regulator readiness as the market draws nearer to opening.

Speaking to iGB on the sidelines of SiGMA Rome, Wallinheimo noted that the authority is still in the process of being established despite the market opening on 1 July 2027.

“We don’t have the authority set up yet,” Wallinheimo warned. He was one of the driving forces pushing for the new regulatory structure even before the latest elections. “Market launch is in less than a year’s time. If you are only starting it now, what will be the end result? I don’t know.”

Regulator in the making

The day the market opens, responsibility for regulating gambling will pass from the National Police Board, which is currently processing licence applications, to a new unit within the Finnish Supervisory Agency. This unit is currently being set up and hiring is ongoing, Wallinheimo said.

The new authority will not just take on supervision of the newly liberalised online market and all other forms of gambling but will also take over processing licence applications. B2C licence applications will remain open while a B2B supplier licensing window will open on 1 July 2027.

The market launch has already been pushed back to 1 July 2027 from an earlier date, with reports suggesting this was due to a shortage of staff in the supervisory agency. Wallinheimo is not alone in showing concern. In a recent op-ed, Finnish compliance lawyer and market expert Antti Koivula also argued that despite thorough preparations, the brand-new regulator may not be fully prepared for the scale of the task ahead.

Wallinheimo questioned what kind of regulator will emerge once the market is up and running.

“Will it be one like in Sweden that is very strict and doesn’t talk with the operators, and just gives fines and there is no discussion between them? Or will it be like in Denmark where the operators and the supervisor are talking all the time, cooperating all the time so everyone knows the playing field?”

Liberalisation needed

Wallinheimo restated the importance of moving forward with liberalising the market and explained the rationale behind the major reform.

“We lost control,” Wallinheimo admitted. “Around €600-900 million [in gambling revenues] were lost overseas, so we need a new kind of reform in order to bring operators to Finland.”

He believes it is possible to protect the player better and collect tax revenue: “The old system didn’t work, we couldn’t protect the structure any longer, we have to protect the player and with this legal regime we can protect the player again.”

Channelisation estimates for the market are around 50%. Finnish authorities are aiming for channelisation of 90% post-liberalisation.

Broad political consensus

There is broad political consensus behind opening the online gaming market to private operators, in contrast to many European countries which have seen a swing toward regulatory tightening, tax rises and negative rhetoric about gambling in recent years.

Even the monopoly operator Veikkaus has openly been in favour of liberalising the online market. (Veikkaus will continue to have exclusivity over land-based gaming, scratchcards and the lottery.)

Wallinheimo put this down to a change in political mindset driven by worsening channelisation; the system simply wasn’t working. The change in mindset began just a few years ago.

“If you go five or six years back everybody thought the monopoly with Veikkaus would be forever. So the mindset change was unbelievably fast. It’s partly because Veikkaus wanted it too, but also because we saw that structure didn’t work anymore.”

Liberalisation is coming to Finland come what may. The licensed sector will be hoping the regulator will be ready to deliver on time.