Finland will end its decades-long gambling monopoly on July 1, 2027, and the country’s state-owned operator is publicly arguing the system has already failed. Olli Sarekoski, president and CEO of Veikkaus, the Finnish state lottery, betting, and gaming company, told SBC News that in 2024 roughly half of total gaming volume in the country flowed outside official channels, a figure he said renders the monopoly structure ineffective.
“A lot of gaming is outside the official channels. What is the point of the monopoly if this is the case?” Sarekoski said. “There are apparently 1,500 gaming companies targeting Finland, so we don’t have a monopoly.”
What Changes and What Stays
Under the re-regulation, Veikkaus will retain its exclusive rights over lottery products and land-based gaming. The competitive opening applies to online betting and gaming. Sarekoski said more than 50 betting companies are expected to enter the Finnish market once it opens. The Swedish-Finnish joint venture ATG Hippos is among the operators already preparing for launch.
Veikkaus was formed in 2012 through the merger of the original Veikkaus lottery, the Fintoto betting company, and the Slot Machines Association (RAY). The combined entity has operated under a single state monopoly since then.
Channelisation Rate Drives the Argument
Sarekoski framed the monopoly’s case around what the industry calls the channelisation rate — the share of consumer gambling that stays within the regulated market. He said the majority of serious gaming harms in Finland have been linked to activity on unlicensed offshore platforms, which operate outside Finnish responsible-gaming safeguards such as loss limits and marketing restrictions.
“The system was not able to protect itself, that was very clear, and it’s better to have fair competition,” he said.
Veikkaus reports approximately 3 million registered customers in a population of 5.7 million. Sarekoski used a driving analogy to describe the current imbalance: Veikkaus operates under an 80 km/h speed limit — loss limits, marketing caps, jackpot restrictions — while offshore operators face no such constraints. From July 2027, he said, all operators will operate under the same 120 km/h limit.
Broad Political Support, Open Questions Ahead
The re-regulation bill passed its second reading in the Finnish parliament in December 2025 with 94 percent of members of parliament voting in favour. All four governing parties — the National Coalition, Finns, Christian Democrats, and Swedish People’s Party — backed the measure before it was sent to President Alexander Stubb for final approval. Members of the opposition Greens and Left Alliance also voted in favour, though they called for tighter rules on sports and public-space advertising and a ban on promotional bonuses.
Sarekoski described the new law as “pretty liberal” and projected the channelisation rate could reach 80 percent or slightly above once the market stabilises. Licensed Finnish operators will be taxed at 22 percent of gross gaming revenue, a rate well below the 37.8 percent applied to online gaming in the Netherlands and the 40 percent rate in the United Kingdom.
Several regulatory details remain unresolved. Affiliate marketing is prohibited under the new framework, a provision Sarekoski acknowledged could weigh on smaller operators, though he did not view it as a significant risk to Veikkaus. Sports sponsorships and advertising on television, radio, and in public spaces are permitted, a shift from the current environment in which there is no advertising for money gaming in traditional Finnish media.
Lessons From Neighbouring Markets
Sweden opened its gambling market in 2019, and the Netherlands launched its regulated online gambling market in 2021. In the Netherlands, public concern over gambling advertising prompted a marketing crackdown roughly four years after launch. In Sweden, channelisation rates for online casino activity have declined sharply since liberalisation.
Sarekoski acknowledged that political pushback is likely in the first six to nine months after the Finnish market opens, particularly around advertising visibility. He said he expects the debate to normalise once market share stabilises. On taxation, he flagged the possibility of future political pressure to raise the 22 percent GGR rate and argued that regulators will need effective enforcement tools to protect licensed operators from offshore competition.
“It’s easier to create very tight regulations, but it’s very demanding to keep the channeling rate up,” Sarekoski said. “The competition should not be taking the highest risk with the gaming harms, it should be the customer experience.”
David Farbacu is a seasoned writer with a passion for games, gaming, casinos, and Xbox. With a wealth of experience in the industry, David brings insightful reviews, comprehensive guides, and engaging articles that cater to both casual gamers and hardcore enthusiasts. His expertise spans across various gaming platforms and genres, making him a go-to source for the latest trends and developments in the gaming world.
