Finland to open gambling market despite Malta’s objections
Draft law is expected to move through parliamentary committees in the coming months before a full vote later in the year
Finland is pushing forward with a major reform of its gambling legislation, despite a formal challenge from Malta and concerns raised at the EU level. The long-anticipated bill, which aims to dismantle Finland’s gambling monopoly and introduce a competitive licensing model, has now been submitted to Parliament.
Prepared by the Ministry of the Interior, the draft law is expected to move through parliamentary committees in the coming months before a full vote later in the year. The proposal enjoys broad political support, making eventual passage likely — even if the timeline may stretch into autumn 2025.
A shift from monopoly to licensing
At the heart of the reform is the introduction of a licensing system for online gambling operators. Under the proposed law, companies offering gambling services to Finnish players will need a domestic licence and will be subject to a 22% tax on gross gaming revenue (GGR). A newly established gambling authority will supervise the market and ensure regulatory compliance.
Licences for B2C operators are expected to be available starting January 2026, with a phased rollout for B2B suppliers beginning in 2027. From 2028 onwards, only licensed providers will be permitted to offer software and support services to legal operators in Finland.
The reform is Finland’s response to years of criticism that its monopoly-based model failed to channel players toward the regulated market. According to the government's own figures, nearly half of all online gambling in Finland currently occurs via unlicensed offshore operators.
From MGA to a Finnish Licence
For many operators, the reform means shifting away from Malta’s regulatory framework. At present, dozens of online casinos popular with Finnish players operate under licences issued by the Malta Gaming Authority (MGA). These platforms will now be required to apply for a Finnish licence if they wish to continue targeting the Finnish market legally.
This transition will significantly change the regulatory landscape for Finnish online casinos who will now face stricter local compliance requirements — as well as new advertising, responsible gambling, and reporting obligations, the Finnish online casino news site Suomikasinot notes. However, the move is also expected to bring greater legal certainty and improved player protection for Finland-based online casino users.
Malta issued formal objection
In accordance with EU procedures, Finland notified the European Commission of its draft law in November 2024. While the Commission itself raised no objections, Malta submitted a detailed opinion on 4 February 2025, questioning the proposal’s compatibility with internal market rules.
In response, Finland defended its approach as consistent with the case law of the Court of Justice of the European Union. Although no changes were made to the legal provisions, the government did expand the explanatory memorandum to address Malta’s concerns. These included clarifications on market access, regulatory proportionality, and legal safeguards for foreign operators.
The standstill period imposed by the EU directive — during which member states must refrain from adopting contested technical regulations — expired. With that, Finland is now free to proceed with the legislation. Any future amendments that substantially alter the bill’s scope or timeline would require re-notification to the Commission.
Next steps and wider impact
While Finland’s reform will primarily affect its own market, its broader implications may reverberate across the EU. As one of the last remaining monopoly regimes in Europe, Finland’s shift to a licensing model signals growing momentum toward harmonisation — or at least increased regulatory compatibility — among member states.
The reform also underscores tensions within the EU over national control of gambling policy. Although gambling remains largely outside the scope of EU harmonisation, conflicts often emerge when national reforms intersect with the principles of the single market — especially when they threaten established interests or regulatory frameworks in other member states.
Still, Finland appears determined to proceed. The final version of the bill, now more than 100 pages longer than the version originally sent to Brussels, includes expanded legal justifications, risk assessments, and implementation details. The government remains on track to open the market to licensed operators in 2026 — ushering in a new era for one of Europe’s most tightly controlled gambling environments.
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