Finland's Path to Licensing: Veikkaus Prepares for the End of the Monopoly

Finland is facing a historic turning point in its gambling history. The Nordic nation is preparing intensively to abandon its long-standing monopoly model and introduce a modern licensing system starting July 1, 2027. This decision follows the example of other European nations that have recognized that a rigid monopoly is hardly sustainable in the era of borderless digital gambling. The state-owned operator Veikkaus, which held sole control for decades, now faces the challenge of defending its market-dominant position against international competitors.

The current situation has become unsustainable for Finnish authorities. Estimates suggest that in 2022, approximately half of Finns' online gambling spending leaked to operators outside the reach of the state monopoly. This meant not only the loss of millions in tax revenue but also undermined player protection efforts. By opening the market, Finland aims to bring these players back into a regulated environment where clear rules and oversight mechanisms apply. However, the transition will be no easy task, as 50 license applications have already been received by the National Police Board Poliisi, highlighting the enormous interest from private operators.

Numbers and facts

The economic strength of Veikkaus in the first half of 2026 illustrates the starting position. The company recorded sales revenue of €471.3 million, an increase compared to €466.4 million in the same period last year. Operating profit climbed to €227.7 million. Particularly impressive is the customer base of 2.7 million registered users. This provides the state-owned company with a massive advantage in marketing and data analysis. Gross Gaming Revenue (GGR) from digital channels grew by 5 percent in the casino and betting sector, with the digital share of total GGR now standing at 64.5 percent.

To prepare for open competition, Veikkaus is restructuring its internal departments. The Data, AI, and Finance teams are being reorganized, with 17 new positions created. At the same time, the company joined the industry association Rahapeliala ry to strengthen advocacy alongside future competitors. Olli Sarekoski, CEO of Veikkaus, emphasized the need for cooperation:

"The Gambling Industry Association Finland has done valuable and commendable work in preparation for the system reform. Gambling regulation is changing throughout Europe, and Finland is no exception. Therefore, it is a natural step for us to be involved in the industry's advocacy together with other key operators."

Background

The reform in Finland is a direct response to the failure of the monopoly in the digital age. While Veikkaus will retain exclusive rights for lotteries and physical slot machines, the online casino and sports betting sector will be open to licensed private companies in the future. Finnish Interior Minister Mari Rantanen stated that the aim of the bill is to find a balance between strict regulation to combat gambling harms and attractiveness for licensees. Finland is following the example of Sweden and Denmark, which liberalized their markets in 2019 and 2012, respectively, achieving high channelization rates.

An interesting aspect of the Finnish strategy is the potential privatization of Veikkaus. The government is considering an Initial Public Offering (IPO) by the end of the decade. However, the prerequisite is that the company proves it can survive in a competitive environment without monopoly protection. Initial signs are positive, as the subsidiary Fennica Gaming increased its B2B revenue by 80.6 percent year-on-year to €10.3 million and is now active in 21 countries.

Why it matters for German players

For German players, the development in Finland shows that the trend toward strict national regulation is irreversible. In Germany, the State Treaty on Gambling has been in force since 2021, pursuing similar goals to the Finnish reform: channelization into the legal market while protecting players. While Finnish players can look forward to a new licensing system, German users must continue to follow the strict requirements of the Joint Gambling Authority of the States (GGL). This includes the deposit limit of €1,000 per month via the LUGAS system and the stake limit of €1 per spin on virtual slot machines.

The Finnish opening could lead to more international operators adapting their offers to strict European standards in the medium term. Anyone receiving a license in Finland must overcome hurdles similar to those for a German GGL license. For German tourists or expats in Finland, this will mean a safer gaming environment under local law in the future, while in Germany, the GGL whitelist remains the authoritative document for legal play.

What it means for GGL-licensed casinos

Casinos with a GGL license can see the Finnish developments as confirmation of their business model. The pressure on unregulated MGA or Curacao providers is growing across Europe. When even a traditional monopoly system like the Finnish one falls, it shows that only clear state licensing models are future-proof. German licensees benefit from legal certainty, even if the restrictions are tough. The Finnish market will be another testing ground from 2027 for operators who have already gained experience with strict regulatory requirements in Germany. A harmonized European standard is thus moving a step closer, even if each country maintains its own nuances in limits and tax rates.