EGBA: Finland’s online gambling legislation needs ‘some fine-tuning’

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The European Gaming and Betting Association’s Secretary General Maarten Haijer has said Finland’s online gambling legislation proposal is “heading in the right direction” but it needs “some fine-tuning”.

Finland’s Ministry of Interior revealed a legislative project in October last year that will introduce a licensing system for gambling in the country, moving away from the monopoly system.

The licence system will cover online casino and online sports betting, while also taking away the monopoly status of state-owned operator Veikkaus in the market.

At the time, the EGBA showed their support for the changes. However, while reaffirming the association’s backing in their latest announcement, Haijer also highlighted some areas of the proposal that need adjustments.

Specifically, the Secretary General spotlighted the proposed marketing restrictions and the proposed blanket ban on bonuses within the legislation.

“While Finland’s proposal is heading in the right direction, some areas require some fine-tuning to ensure the new licensing framework achieves its goal of ensuring Finns play with locally licensed websites,” Haijer stated.

“For starters, the proposed marketing restrictions, especially the ban on affiliate marketing and social media advertising, might backfire. These channels play a key role in guiding consumers to licensed, regulated platforms. Without them, players will drift to black market websites that don’t follow Finnish regulations or prioritise consumer safety.

“Also, the proposed blanket ban on bonuses is concerning. While we support setting boundaries on bonusing, a complete prohibition will simply make any newly licensed operators less competitive against unlicensed ones. 

“This risks pushing players towards unregulated sites, undermining the very consumer protections the legislation aims to establish and strengthen.”

In response to the Finnish government’s recent consultation, the EGBA has put forth two suggestions – changes to affiliate and social media advertising, as well as implementing bonus guidelines for responsible use.

Haijer noted: “Bring affiliates into the regulatory framework and allow social media advertising under clear rules. Both are valuable tools for channelling players towards licensed operators. 

“By implementing clear guidelines, such as mandatory safer gambling messages, Finland can harness the power of these marketing channels while maintaining high standards of consumer protection.

“Instead of banning bonuses outright, implement guidelines for their responsible use. For instance, a nuanced approach could involve prohibiting bonuses for players showing signs of problematic behaviour or setting clear rules on when and how bonuses can be offered. 

“This strategy would allow operators to compete more effectively with unlicensed sites who will undoubtedly use bonuses to try to entice Finnish players away from regulated websites.

“These changes would better align Finland’s approach with the successful models seen across the EU, striking a balance between market competitiveness and robust consumer protection.”

The Secretary General concluded by stating that the EGBA is ready to support Finland in creating its licensing system, encouraging the government to undergo its suggestions to create a gambling market that is healthy, well-regulated and protects its players.

Haijer said: “Transitioning to a licensed market is no small feat, but it’s one that ultimately benefits everyone involved. At EGBA we are ready to share our expertise and support Finland in creating a well-regulated, competitive, and safe online gambling market.

“Finland stands at a pivotal moment in the history of its gambling regulation. By crafting a successful online gambling framework, Finland, like its neighbours Denmark and Sweden, can successfully transition from its monopoly to a well-functioning licensing system. Denmark’s transition to multi−licensing in 2012 led to a significant improvement in online channelisation, reaching well over 90 per cent. Sweden has seen similar improvements.

“Addressing the concerns about marketing restrictions and bonus regulations is crucial to ensure the new legislation achieves its objectives, safeguarding Finnish consumers while fostering a healthy, well-regulated online gambling environment.”

Last month, Finland’s Institute of Health and Welfare expressed its concerns over the new licensing model, stating that it could lead to a rise in problem gambling rates in the country.