Finland’s 2026 Gambling Reform Opens Market, Adds Horse Racing
The Finnish government has outlined a comprehensive reform of its gambling system, moving towards a competitive licensing model and away from the current monopoly held by Veikkaus Oy. Announced by the government’s economic policy committee, this shift includes plans to allow commercial operators in specific gambling sectors, including horse race betting, and targets a launch date of January 1, 2026.
This transformation is part of Finland's broader strategy to address gambling-related issues and enhance market channelization, or the use of regulated, domestic platforms over unregulated foreign sites. This regulatory overhaul represents a substantial policy shift, aiming to improve consumer protections while opening up the market to licensed competitors.
Horse Betting to Join the Competitive Market
In one of the most notable changes, Finland’s government has decided that horse race betting will now fall under the new competitive licensing framework. Previously, horse race betting was controlled by Veikkaus, the state-run monopoly operator. With this reform, the funding model for the horse racing sector will also change significantly. Rather than relying on revenue from Veikkaus's monopoly, financial support for horse racing will now come directly from the state budget. This includes funding for horse breeding, industry advisory services, anti-doping measures, and other essential programs under the oversight of Hippos ry, Finland’s primary horse racing authority.
A statement from Finland’s Ministry of the Interior emphasized the importance of this change, noting that support for the horse racing industry will be allocated to "breeding, operator-specific advice, and the development of the competition system" directly through government funding. The updated model reflects a new approach to promoting horse racing that separates it from commercial gambling revenue, aligning with the government’s goals for transparency and responsible market growth.
Key Features of the Licensing System and Regulatory Changes
The new competitive model includes licenses for online betting, electronic casino games, electronic bingo, and cash machine games. However, Veikkaus will retain exclusive rights over certain sectors, including lottery games, physical casinos, and specific betting machines. This selective approach aims to balance market openness with the control needed to mitigate gambling-related harms.
To further support responsible gambling, the proposed law will strengthen anti-money laundering (AML) and player protection measures. Enhanced "know your customer" (KYC) requirements, age verification protocols, and a centralized self-exclusion systemare all part of the draft law. Additionally, marketing practices for gambling products will face new restrictions, particularly for games under the Veikkaus monopoly. Outdoor advertising for high-risk games will be prohibited, and influencer and affiliate marketing will be strictly controlled.
In a bid to ensure alignment with European Union standards, the draft legislation has been sent to the European Commission (EC) for review. The EC will assess the proposal’s compliance with EU laws, including the free movement of services. During this period, the Finnish government aims to gather feedback from EU member states, a process critical for finalizing the reform.
Next Steps Towards a New Gambling Market
Finland’s Ministry of the Interior plans to submit the finalized version of this gambling reform to the Finnish Parliament by spring 2025. If approved, license applications could open as early as 2026, with licensed operators expected to begin service by January 2027. The reform aims for gradual implementation, with certain components—such as B2B software supplier licensing—set to roll out by 2028.
This licensing shift reflects Finland's intention to adopt a more balanced and regulated approach to gambling, fostering a safer environment while opening the market to competition. Finland joins other Nordic nations that have implemented similar models, and experts view the reform as a positive move towards better control, oversight, and transparency in the gambling industry.
Source: Finland’s Gambling System Prepares for Competitive License Market Shift, lcb.org, November 5, 2024.