In Finland's evolving online gambling landscape, some operators are set to enter with a significant advantage in customer base while others will initiate their operations from ground zero. This disparity was highlighted during a panel discussion at the SBC Summit in Lisbon, titled "Finland's waiting: The start of a new European market." Antti Koivula, chief compliance officer at Hippos ATG, joined other industry leaders, including Sverker Skogberg from Paf, Ivana Pejic from Betsson Europe, Brian Forth from Finnplay, and Emil Nilsson of NordPlay Group, in addressing these issues.
Post-panel, Koivula expressed concerns regarding the competitive dynamics in the new regulatory market, particularly for operators without an existing customer base. He noted that MGA-licensed companies would bring their current Finnish customers into the new market, creating a significant data gap inherently favoring larger operators.
Veikkaus, the state-owned entity with more than 2.7 million customers, can expect to retain a substantial portion of its base, primarily those engaged in sports betting and casino games, potentially exceeding 2 million. Other major operators also boast customer bases exceeding six figures, while Hippos ATG, a collaboration between the Swedish operator ATG and the Finnish trotting association Suomen Hippos, faces the challenge of building its business from scratch.
"There was discussion on whether the playing field is genuinely level," Koivula commented. "However, there's no point in dwelling on that; the rules have been set, and everyone must adapt."
Licensing applications are now open as Finland prepares for its market launch in July 2027. For Koivula, this regulatory shift comes too late, as he believes the reform should have occurred much earlier. "It's about time it happened. My personal view is that it should have happened 10 or 15 years ago," he stated. He identified 2017, when Finland's three state-owned gaming companies merged into Veikkaus, as a pivotal moment. He emphasized that signs of the need for reform were evident even then, citing a declining channelization rate.
Since that merger, Veikkaus has experienced a nearly 45% drop in gross gaming revenue, from approximately €1.7 to €1.8 billion, alongside a similar reduction in state contributions. On the reasons for the state's delayed response, he succinctly attributed it to finances: "Money."
Discussions also touched on the new regulatory body that will commence operations on July 1, 2027. Koivula voiced concerns about its readiness, noting that the recruitment of a director, set to begin on January 1, only provides a brief window for preparation. "I'm rather concerned about whether they’ll truly be operational from day one," he remarked. "Legally, they will be; there’s no doubt about that."
While Koivula anticipates timely license approvals, he worries that the authority may lack the necessary guidance or capacity to manage the black market effectively. He referenced the Finnish regulator's own documents, indicating it will have less than half the staff of its Danish counterpart, despite the comparable sizes of the two countries.
The appeal of the Finnish market is bolstered by consumer spending habits. "The Finnish market is quite lucrative: per capita GGR is high, and there’s a lot of potential," he pointed out.
This prevalent interest in gambling is ingrained in Finnish culture, with the state monopoly featuring slot machines in supermarkets and other commonplace venues. Although Veikkaus remains under state ownership, conversations about a partial divestment are becoming more frequent. However, Koivula does not foresee any sale taking place before 2030, meaning Veikkaus will enter the competitive arena backed by the government and likely retaining over 2 million customers.
As the July 2027 launch approaches, operators starting anew are counting down the days, with the readiness of the regulatory framework still in question.
