Jukka Tukia: “In Finland, digital gambling, especially across borders, has challenged the monopoly system as a form of organising gambling”

Ministerial Adviser Jukka Tukia spoke with Focus Gaming News about Finland’s transition to a competitive licensing model and the regulatory roadmap for the country’s new gambling system.

Exclusive interview.- Finland is on the cusp of a major transformation in its gambling landscape. After decades of Veikkaus’ monopoly, the country is shifting to a competitive licensing model, a move designed to improve player protection, increase market transparency, and channel more activity into regulated operations.

In this exclusive interview with Focus Gaming News, ministerial adviser Jukka Tukia, who played a key role in drafting the new legislation at the Ministry of the Interior, explains the motivations behind the reform, the lessons drawn from other Nordic markets, and how the government plans to manage licensing, supervision, and compliance as the system opens for competition.

Tukia also provides insights into which verticals will be opened to licensed operators, the phased rollout of software licences, and how authorities will monitor the channelling rate and gambling-related harm post-2027, setting the stage for a regulated, modernised Finnish gambling sector.

What motivated Finland’s shift from a monopoly system to a competitive licensing model after decades of Veikkaus’ exclusive control, and what does this reform signal about changing European attitudes toward gambling regulation?

After the parliamentary elections in 2023, the parties winning the elections agreed on the reform of the gambling system when the new Government was being formed. The Government Programme published in July 2023 justifies changing the gambling system as follows:

The current gambling policy has failed, as gambling is a major problem for some Finnish people. The market share of the monopoly system in digital gambling is close to the 50 per cent limit, and companies outside the monopoly that operate in the digital gambling market make their profits without licence fees, taxes or responsibility for gambling problems caused by these activities (see https://valtioneuvosto.fi/en/governments/government-programme#/, using a search word ”Gambling system”).

Political groundwork for the gambling system reform started already during the previous government term (2019-2023), when the one of the current opposition parties (Social Democrats) was the Prime Minister’s party. As we were in the final stages of the previous government term and different parties were preparing for the upcoming elections in April 2023, the then government parties started to discuss a possible transition to the licensing system. The Government decided to carry out a preliminary study on the matter within a short timeframe so that it could be used in the negotiations on the Government Programme. Preliminary study project was launched in January 2023. The report, published in April 2023, identified two main options for achieving a higher channelling rate in online gambling: introducing new restrictions to prevent gambling outside the monopoly system more effectively or switching to a licence system for online gambling.

From the other Nordic countries, Denmark previously moved to the licensing system in 2012 and Sweden in 2019. Norway has, with certain limited exceptions, an exclusivity system for the provision of gambling services. In my opinion, each country has made its own decisions on how to organise the gambling system based on its own situation. In Finland and elsewhere, digital gambling, especially across borders, has challenged the monopoly system as a form of organising gambling. In addition, EU law may have put pressure on the reform of the exclusive rights system, as happened in Sweden, for example. 

A general trend can be seen in the fact that the provisions on the marketing of gambling, in particular, have been tightened in licensing systems in recent years.

“From the other Nordic countries, Denmark previously moved to the licensing system in 2012 and Sweden in 2019.”

Ministerial adviser Jukka Tukia.

What will be the key evaluation criteria for the National Police Board during this initial phase?

If the licence procedure and the assessments included in it are concerned, the Act lays down provisions on the licence procedure.

Gambling licences for the competitive gambling games market and gambling software licences can be granted to a natural or legal person referred to in the Enterprise Act. In addition to general requirements, the licence applicant must also meet the requirements of fitness and propriety laid down in the Gambling Act.

An exclusive licence can be granted to a limited liability company controlled by the Finnish state and engaged in the running of gambling games. In practice, this means a company within the Veikkaus Group.

The licensing window opens March 1, 2026, but operations don’t commence until July 2027—a 16-month gap. What is the National Police Board doing during this period to prepare for market supervision and enforcement? How will the Ministry coordinate the handover of licensing/supervision responsibilities between the National Police Board and the new Finnish Supervisory Agency?

Instead of the Ministry of the Interior, the Ministry of Finance is preparing the implementation of the licensing and supervision activities of the new gambling system. The implementation project is tasked with preparing the necessary measures to allow activities under the new Gambling Act to commence in accordance with the timetable laid down in the Act.

Which specific online gambling verticals (sports betting, casino games, poker, bingo, etc.) will be opened to competition, and which will remain under Veikkaus monopoly?

In the competitive market, gambling licences may be granted for betting and certain types of online gambling games. Betting will encompass on-track horse betting and virtual betting. Online gambling games in the competitive market will encompass online casino games, online money bingo and online slot machines. Veikkaus may obtain an exclusive licence for money lotteries (land-based and online scratch cards), pools (e.g. lotto), physical slot machines and physical casino games.

What specific channelling rate improvement targets has the government set for the regulated market post-2027, and how will this be measured?

The Gambling Act or its justifications do not include numerical channelling objectives. According to the Government Programme referred to in response 1 above, the aim of the reform is to prevent and reduce economic, social and health-related harm resulting from gambling and to improve the channelling rate of the gambling system. 

The Gambling Act has aimed to establish a regulatory framework that balances restrictive measures designed to prevent and reduce gambling-related harm with elements enhancing the attractiveness of the gambling system that boost channelling capacity.

Based on the comments received on the draft bill during the legislative drafting process, the aim of the Government Programme concerning improvement in the channelling rate will very likely be accomplished with the selected legislative approach.

In connection with the adoption of the Gambling Act, Parliament issued a statement according to which Parliament requires the Government to monitor the development of the channelling rate and harm caused by gambling and to ensure the operating conditions and resources of the system’s regulatory control and work against harm caused by gambling.

Gambling outside the gambling system can be assessed, for example, by examining the shares of players and the amount of money spent on gambling. The estimates may be based on various surveys, data on gaming margins in euros received from gaming companies and assessments by consulting companies operating in commercial markets. No specific method of monitoring the channelling rate has been selected or excluded, and in Finland, the authorities monitor what kinds of methods are used in other countries and also assess their usability in measuring the channelling rate of the Finnish gambling system.

What preliminary information can you share about the gambling software licence requirements that take effect July 1, 2028?

Under the Gambling Act, a licence for gambling activities and a licence for game software must be granted under the Enterprise Act a natural or legal person referred to, if it can be ascertained on the basis of the information obtained that the applicant and its owners and management fulfil the criteria for reliability and suitability laid down in the Gambling Act.

Granting a licence to a natural person also requires that the applicant is of age, that his or her legal capacity has not been restricted under the Guardianship services Act and that a guardian has not been appointed for him or her under the said Act.

A precondition for granting a licence for game software is that the applicant is reliable and suitable for producing, delivering, installing or adapting game software used in the running of gambling.

Gambling software licence applications may be submitted as from July 1, 2027. The obligation to use only the software provided by the gambling software licence holder will apply as from July 1, 2028.