Finland's looming online gambling market faces channelisation doubts

As Finland prepares to open its regulated online gambling market in July 2027, industry observers and mainstream commentators are questioning whether the licensing regime will attract enough players to keep channelisation rates high. The new Finnish Gambling Act will end state-owned Veikkaus’s monopoly on online casino and sports betting, but strict responsible gambling measures—including limits on marketing and bonuses—have sparked concerns that the legal market may struggle to compete with offshore alternatives.

An op-ed published this week in the Helsinki Times drew parallels to Sweden’s experience after it replaced its monopoly with a licensing system in 2019. The piece warned that if the regulated offering is “noticeably less attractive than offshore alternatives,” consumers might simply move to unlicensed operators. It noted that while a licensing system can improve transparency, generate tax revenue and introduce stronger consumer protections, “maintaining a high channelisation rate requires more than issuing licences.” The op-ed added that regulators must ensure licensed operators remain competitive enough to keep players within the regulated framework.

Lessons from Sweden

Sweden’s regulated market launched in 2019 with a target of 90% channelisation, a goal that the Swedish regulator Spelinspektionen has since acknowledged may have been overly ambitious. The country now has roughly 100 active licences, giving consumers broad choice, while the state has implemented extensive safeguards such as the Spelpaus self-exclusion tool and marketing restrictions. However, keeping gamblers away from unlicensed sites has proved more difficult than anticipated. The Swedish online gambling association BOS frequently highlights the volume of play taking place on offshore platforms, and acting Secretary General Daniel Valiollahi has argued that Spelinspektionen lacks sufficient enforcement powers against operators based abroad.

Last year, a review led by Marcus Isgren proposed expanding the regulator’s enforcement toolkit, including powers to order banks and payment providers to block transactions to unlicensed operators. Another proposal would remove the requirement that an unlicensed operator must be shown to be directly targeting Sweden through language, payment options, or marketing before enforcement action can be taken.

Finland’s policymakers are now weighing whether similar enforcement gaps could undermine their own planned market, as the July 2027 launch date approaches. The op-ed in the Helsinki Times concluded that the ultimate objective “is not simply to regulate gambling, but also to persuade players to remain within the regulated market.”