Finnish government taking “reckless risks” with restrictive gambling regulatory framework

Gambling in Finland is to be re-regulated, with Veikkaus’ monopoly ending and commercial operators allowed into the market by 2027. This brings an end to years of speculation and makes good on a government pledge to liberalise the market that was first issued in 2023.

However, draft regulations published for public comment in July propose strict controls on marketing, including a ban on bonusing and affiliates, as well as influencer marketing. That consultation period ran until 18 August.

In an opinion piece published on Uusi Suomi in response to the draft, Kuismanen said he supported market liberalisation, but added restrictions around marketing were “unjustifiably limiting” and could impact channelisation in the licensed market.

“The proposal contains several rather significant details that do not promote a well-functioning gambling environment,” he said.

“The new gambling law[…] was supposed to open the market and welcome competition,” Kuismanen said. “Now the law threatens to go down the wrong path right from the start.

“Marketing is unjustifiably limited, sponsorship is stifled, while bonuses and offers are prohibited. If it doesn’t change course quickly, the law reform will run into a wall and gambling on the grey market will continue.”

Could Finland gambling market emulate Denmark bonusing measures?

He said a ban on bonusing would likely increase activity in the illegal market.

“If a ban [on bonusing] is imposed the level of channelisation will certainly decrease. Licensed operators would then have no chance to compete with unlicensed operators who attract players with aggressive bonus offers and other marketing.”

Kuismanen highlighted Denmark’s bonusing scheme as a successful model. It enables players to receive bonuses at certain intervals based on their habits, rather than unprompted or as an incentive to sign up to a site.

Other stakeholders have expressed similar concerns. Local lawyer Antti Koivula questioned whether a high channelisation rate can be achieved by prohibiting bonuses and traditional affiliates

“Marketing is a crucial tool for companies entering a new market to make customers aware of their brands and products,” he said on LinkedIn.