Traditions are usually permanent, but some are not meant to last forever. For many decades, only one company was allowed to run gambling in the country. Things have changed, and Veikkaus is no longer the monopoly leader in Finnish betting. With people using their phones to find betting sites from all over the world, access to offshore operators is simpler than ever.
The government cannot tax them or make sure that they treat their customers fairly. Therefore, Finland’s president signed a new gambling reform bill, with which the old monopoly will end by July 2027. The country will let other companies apply for a license to operate legally at the country, but not at no cost.
Why Does The Government Need To See Every Single Bet?
Any operator applying for a license in Finland will have to share all information about their customers’ betting activity in real time. In the past, bookmakers were obliged to submit a report every few months, but this wasn’t enough for the government to track activity.
Under the new law, the Finnish government will have access to a live feed. This means that whenever someone places a bet or wins money, the information will be shared with the authorities straight away. This will make it virtually impossible for any company to hide mistakes or cheat.
At the same time, the regulator will spot if someone is betting too much or in a way that looks dangerous. The computer systems will turn into a digital watchdog that never sleeps, available 24/7.
How Will The New Watchdog Keep Track?
The big challenge for the operators will be the 22% GGR (Gross Gaming Revenue) tax that will apply to all those acquiring a license. Experts estimate that Finland loses around €250 million in taxes each year due to offshore betting. So far, since the current monopoly structure wasn’t very demanding, the government didn’t need an agency to oversee betting activity nationwide.
A new regulatory authority will now be established, so the betting companies will be under constant surveillance. The agency will have the power to move quickly when something goes wrong, to fine operators immediately, or even to take away their license.
However, the big gamble is the blacklist. Operators without a license in the country will be blocked, both their websites and their financial interaction with institutions in Finland. Banks will be instructed to ban payments to and from these offshore options, making it easier for players to know which sportsbooks are legal.
How Will Betting Ads Be Affected?
The new law proposal has a special chapter on “sign-up bonuses”. Finish bettors will no longer see famous influencers and celebrities recommending specific bookmakers. Also, the operators must be very down-to-earth with their advertising.
Flashy offers and excessive bonus promises won’t be accepted by the regulator, meaning that the sportsbooks will have to focus on having a good, working website instead of offers and commercials. This is all part of the plan to make sure gambling stays as a form of entertainment and does not become a problem for people.
The Finnish government expects to bring in around €250 million in taxes that so far are going to other countries and territories. The strict rules do not always yield results, but they are definitely a new chapter for the betting industry in the country.
