EGBA Calls on Finland to Review Gambling Regulations
Date: 2024-09-06 Author: Alex Crawford Categories: EVENTS
The European Gambling and Betting Association (EGBA) has commented on the reform of the Finnish gambling market, which is planned to be switched from a state monopoly model to a multi-license system. This will allow foreign companies to offer their services in the country.
While these changes are expected with optimism, as they can improve consumer protection, increase revenues and create new jobs, the current draft law may not be ideal, the association notes.
EGBA Proposes Changes to the Draft Regulation
The final version of the law is due to be presented in spring 2025, and there is little room for improvement until then. EGBA expresses dissatisfaction with several aspects of the current draft. One of them is the proposal to ban affiliate marketing and gambling advertising on social media.
EGBA stresses that this decision could be dangerous and hinder the growth of the regulated market, causing many players to turn to unlicensed operators operating on the black market. In a statement, the organization noted:
"These channels play a key role in attracting consumers to licensed platforms. Without them, users could turn to black markets where Finnish laws and protections do not apply."
Restrictions on gambling advertising are becoming increasingly common in Europe. Countries such as the Netherlands, Sweden and Italy have introduced strict restrictions, with Italy having a complete ban on advertising. The only country that has relaxed its restrictions somewhat is Spain.
Controversial Bonus Limit Proposals
EGBA is also concerned about Finland's proposal to completely ban bonus offers and promotions. Secretary General Maarten Heijer argues that while limiting bonuses is a sensible step, banning them completely could create an uneven playing field for licensed operators and strengthen the position of illegal companies.
The association does not propose to ban affiliate marketing and bonuses, but instead to develop a clear system of regulation of these aspects so that licensed companies can compete equally with others.
Experiences of Other Countries in Regulation
Finland is at an important stage in reforming its gambling regulation system and can use the experience of other European countries that have already gone through similar processes. EGBA notes that countries such as Denmark and Sweden have already successfully transitioned from a monopoly system to licensed markets.
"Finland is at an important stage in its gambling regulation history. By creating an effective licensing system for the online gambling market, Finland can successfully transition from a monopoly to a competitive market," the association concludes.
It is planned that licensing applications will begin to be accepted in 2026, and the market will become fully accessible to foreign operators in 2027.
