Key Moments:
- Finland’s Parliament has approved a Gambling Act, replacing the monopoly with a license-based market.
- Licensed operators can apply starting next month. Market entry is possible from July 1, 2027.
- Malta license holders targeting Finnish players must obtain a Finnish license under the new rules.
Introduction of New Finnish Gambling Regulations
Finland has taken decisive action to reform its gambling industry. Parliament recently endorsed major changes. This transition abandons the longstanding monopoly. In its place, licensed operators can now compete in online casinos and fixed-odds betting markets. However, Veikkaus, the state-owned operator, will retain control over lotteries, scratch cards, and certain land-based games.
Applications for gambling licenses open next month. Eligible companies may offer and advertise services to Finnish customers starting July 1, 2027. Additionally, regulatory responsibility shifts to the newly established Finnish Supervisory Authority. This gives operators time to adjust to compliance requirements under the new system.
Impacts on Malta License Holders and Player Taxation
These regulatory changes carry significant consequences for Malta-licensed operators already serving Finnish clients. While residents can still access unlicensed sites, winnings from these platforms are now subject to income tax. As a result, the rules encourage a shift toward licensed operators and increase gambling activity within the regulated system.
Requirements and Costs for License Applicants
The updated legislation allows both European Economic Area (EEA) and non-EEA operators to apply. Non-EEA companies must appoint a representative based in the EEA. All applicants must demonstrate effective internal controls, anti-money laundering safeguards, and robust governance. Additionally, they must have clear plans for player protection, marketing, and regulatory reporting.
| Fee Type | Amount |
|---|---|
| Initial Application Fee | €29,000 |
| Amendment/Authorization Fee | €1,120 |
| Annual Supervisory Fee | From €4,000 up to €434,000 (tiered by gross gaming revenue) |
| Gross Gaming Revenue Tax | 22% |
Operators tax-resident in Finland will also pay corporate income tax on profits. This aligns with the country’s broader corporate tax framework.
Territorial Limitations and Regulatory Enforcement
Licenses granted in one EU country, including Malta, do not automatically allow operations in Finland. This aligns with guidance from the Court of Justice of the European Union. Authorities cite public policy reasons for these restrictions.
Once the Finnish rules take effect, Malta-licensed companies targeting Finnish players must obtain a local license. Otherwise, they risk enforcement actions such as marketing bans by the National Police Board. Additionally, violations may affect a company’s standing when applying for future licenses. Compliance history influences the “fit and proper” assessment conducted by the Finnish Supervisory Authority.
European Trends and the Position of MGA License Holders
Finland’s reforms reflect a broader European and Nordic trend toward localized licensing. As a result, MGA B2C licenses are increasingly insufficient to access certain markets. Similar systems are being explored outside Europe, including Chile, which plans an online gambling licensing regime by 2027.
As national regulations grow, the reach of MGA licenses shrinks. However, operators still leverage MGA licenses for markets with regulatory gaps, such as Norway and Iceland. This highlights the fragmented regulatory landscape in the global gambling industry.
Operators increasingly rely on Recognition Notice certificates to maintain their Maltese operational base. This benefits them through Malta’s favorable fiscal regime, access to financial services, and skilled workforce. Consequently, the MGA issued 62 Recognition Notice certificates in its latest annual report, showing notable growth from prior years.
- Author
Daniel Williams
