Regulatory overhauls have become very commonplace within the global gambling ecosystem of late, with numerous regions witnessing refocused priorities for one, or a number of, key critical motivations.
One such example is Finland, whose modernisation plans include the launch of a new licensing system to liberalise the country’s marketplace by 2027. However, alongside this have been urges to emphasise customer channelling and the reduction of harms.
In the latest CasinoBeats countrywatch focus, Jo Purvis, Director of Marketing at Blueprint Gaming, and Christos Zoulianitis, Playson’s Director of Market Strategy, examine if the plans will achieve a goal of reducing harms, if lessons have been learned from elsewhere and just what the refreshed market could look like.
CasinoBeats: The proposed new law will enforce strict rules governing gambling advertising and marketing, with bonuses, influencers and affiliates all outlawed. Do you think this will have the necessary impact on reducing harm that it intends? Does this reflect negatively on the industry’s ability to regulate itself?
Jo Purvis: Without the ability to advertise, there is less incentive for any operator to get a license. Without the ability to market they can’t gather a customer base.
Therefore it depends on how strict or prescribed the rules are and on the flip side, how the regulator is at helping the general populus identify websites that are licensed and they deem safe to gamble. If this was to happen, it should diminish the attractiveness of black market operators and improve channelisation.
Does this negatively reflect on the industry’s ability to regulate itself? I think it does infer that the industry is being judged before the market has regulated.
Elements like this can be amended later as we have seen in other markets like Spain and Italy if the regulator has greater concerns, but there has to be some sensible regulations in place. A balanced approach here is the most favourable outcome.
Christos Zoulianitis: We eagerly await the new regulatory changes expected to come into force in 2027. It is important to remember that the restrictions that have been announced are not new. Several global markets have introduced similar frameworks, and the majority include restrictions on advertising.
I would like to see a faster and clearer certification process for providers. In many markets, restrictions have made the certification process overly complicated, which can negatively impact casinos. Limiting traffic to casinos shouldn’t also slow down the release of new games.
It is hoped that rules will reduce gaming-related harm as the laws aim to prevent potentially problematic patterns of behaviour. While implementing restrictions can give individuals increased control over their play, balance is key.
There are many ways to approach regulation that allow players to enjoy online slots safely, such as imposing time or deposit limits, instead of a blanket ban on advertising. Most providers and operators already put measures in place to protect their players. Time will tell how the market develops.
CB: What can the Finnish regulators learn from established regulated markets such as next-door Sweden? Is Finland using that recent experience as a model?
CZ: It would be wise for Finnish regulators to take learnings from neighbouring markets and forecast the impact their framework might have in the first six months of its enforcement. While I’d prefer not to comment on Sweden’s market, we have seen the impact of overly strict regulations in the past.
When Greece introduced a strict approach four years ago, there was such an increase in unregulated casino traffic that they were forced to review regulations again a couple of years later. Lessons can be learnt from other established regulated markets.
JP: There has been both success and failures by other markets in this way. The two best models seem to be Ontario and the UK as they have achieved high channelisation by having defined regulations and sensible rules on marketing.
Their approach has allowed operators to gather market share and build a business that only gets stronger, strengthening channelisation along the way.
Sweden would be an ideal framework to follow but they would still want to review successes and shortcomings compared to alternative markets when it comes to the restrictions on advertising.
CB: What do you expect the market to look like? Will it achieve the channelisation that it aims for? Will player taste be in line with their Scandinavian neighbours?
JP: I would expect it to take shape along similar lines to the Netherlands or Sweden, with both countries achieving channelisation, once they established a regulatory regime after previously being an unregulated jurisdiction. In terms, of player taste, we would absolutely see it mirroring its Scandinavian neighbours in game style and volatility of content.
CZ: I believe the impact of regulations will be positive, encouraging online market growth and attracting more casinos to invest in it. It is a good step when a market becomes regulated, but restriction levels and the certification process should be considered carefully. Overly stringent measures can have a negative impact on the market and slowly kill it instead of encouraging its development.
