Finland’s iGaming market: growth amid regulatory shifts

Georgi Iliev, Regulatory Compliance Manager at Delasport, delves into the prospects of Finland’s iGaming ecosystem as the country follows a global trend of ushering in a transformed regulatory environment.

Finland is rapidly emerging as one of the most exciting frontiers in the global iGaming space. With a fast-evolving digital gaming ecosystem and landmark regulatory reforms on the horizon, the Scandinavian country presents a rare blend of opportunity, innovation, and momentum.

As the market opens up, savvy operators and investors are eyeing Finland not just with interest – but with high expectations for growth, profitability, and long-term impact in the European iGaming scene.  

In a landmark move set to transform the nation’s gambling landscape, the Finnish government submitted, on March 20, 2025, a historic bill to Parliament aimed at ending the longstanding state monopoly held by Veikkaus Oy, and ushering in a modern, competitive licensing system for online gambling.

With deep regulatory expertise and sharp market insight, Delasport is uniquely positioned to guide operators through the complexities of Finland’s soon-to-be-liberalized iGaming sector.

As the market transitions from a state monopoly to a competitive licensing model, we’re closely monitoring every regulatory and market shift – ready to support our partners from day one. Here’s what we know so far about this high potential, yet uncharted, opportunity.

Current market situation

As of April 2025, the Finnish iGaming market is experiencing notable growth, driven by evolving consumer behaviours and anticipated regulatory changes. Below is a summary of key market data: 

Market size and revenue

Finland’s gambling market forecast is expected to reach roughly €2.4bn by 2025 with the online segment being the main engine of growth. This part of the gambling landscape keeps expanding steadily while land-based revenues shrink or stagnate. In fact, it’s expected to surge to about 65% of total GGR (€1.56bn).

In 2023, Veikkaus Oy, Finland’s state-owned gambling operator, reported a gross gaming revenue of €1.032bn.

The online gambling segment has an expected compound annual growth rate (CAGR) of 5.10% to 2029, potentially increasing the market volume to €1.52bn by 2029.

Player demographics and behaviour

• Approximately 44% of Finnish adults engage in online gambling, while 24% participate exclusively in physical facilities. 
• The typical Finnish gambler is male, aged between 30 and 59. 
• In 2022, Finns spent around €1.07bn on Veikkaus games, averaging approximately €240 per person annually.
• According to the latest population study by the Finnish health authority (THL), in 2023, 70% of individuals aged 15–74 in mainland Finland reported engaging in some form of gambling over the past year, equating to approximately 2.5 million people. This marks a decrease from the 78% participation rate observed in 2019.
• Traditional forms of gambling, such as slot machines in supermarkets and casino visits, have seen a decline in participation. Factors contributing to this trend include reduced availability of slot machines and evolving consumer preferences. Nonetheless, traditional lotteries continue to maintain a broad player base through both retail and online channels.
• Gambling participation spans all age groups in Finland, but middle-aged adults are the most active.
• Individuals aged 45–59 recorded the highest gambling participation rates in the 2023 study conducted by the THL.
• Older adults (60–74) also show frequent gambling activity, especially in lotteries and slot machines.
• Attitudes toward gambling among older age groups have become more positive in recent years, reflecting greater acceptance of gambling as a recreational activity.
• Men gamble more frequently than women overall, according to THL’s findings.
• Men also tend to spend more money and engage in higher-risk gambling activities compared to women.
• Sports betting and online poker are particularly male-dominated, with men making up the majority of participants in these segments.
• Women are more evenly represented in lower-risk formats, such as lotteries and bingo.

Offshore gambling activity

Estimates suggest that in 2021, Finnish players spent between €300m and €590m on gambling platforms outside the state monopoly system. A working group from the Ministry of the Interior in 2023 estimated offshore gambling expenditures to be around €500m–550m.

Revenue breakdown by product type

Casino-style gaming, including slots and table games, currently stands as the leading product category in Finland’s gambling market, generating the highest share of overall revenue.

Lottery games – such as draw-based lotteries and scratch cards – follow closely, accounting for roughly a quarter of the total gross gaming revenue. This reflects the enduring popularity of titles like Lotto and Eurojackpot among Finnish players.

For operators eyeing the Finnish market, it’s worth noting that online sports betting makes up approximately 24% of the online GGR. While it remains a smaller segment compared to casino and lottery products, sports betting is steadily growing and adds diversity to the digital gambling ecosystem.

In summary, the Finnish market is primarily driven by casino-style games, with lotteries serving as a strong secondary revenue source, and sports betting representing an emerging opportunity within the online space.

Market structure

Finland’s gambling market has traditionally operated under a state-controlled monopoly. On the mainland, Veikkaus Oy holds exclusive rights to organize gambling activities, including lotteries, sports betting, online casino games, and physical slot machines. This entity was established in 2017 through the merger of three organizations: the original Veikkaus, Fintoto, and the Finland’s Slot Machine Association (RAY).

In contrast, the autonomous Åland Islands maintain their own gambling operations through Ålands Penningautomatförening (Paf). Founded in 1966, Paf offers a range of gaming services both online and aboard cruise ships in the Baltic and North Seas. While primarily serving the Åland region, Paf also accepts players from outside the islands.

Historically, no domestic licenses have been available for private operators within Finland’s gambling market, preventing them from establishing operations under the existing regime. This has led to a significant presence of offshore online gambling companies serving Finnish customers without local licenses, effectively creating a sizable grey market alongside the Veikkaus monopoly.

However, recent developments indicate a shift in this landscape. The Finnish government has proposed reforms to end Veikkaus’ monopoly by 2027, introducing a licensing system aimed at regulating the market and preventing gambling-related harm. 

These anticipated changes present new opportunities for operators and suppliers interested in entering a regulated Finnish gambling market.

Taxation & regulation changes

Finland imposes a gambling tax (often termed the ‘lottery tax’) on Veikkaus’ revenue in lieu of corporate taxes. The Lottery Tax Act sets the rate at 12% of GGR.

However, in June 2023, Finland’s government announced plans to end the Veikkaus monopoly by 2026 and transition to a dual licensing system (Source). Under the proposed model, online casino games and sports betting will be opened to licensed private operators, while Veikkaus will retain exclusivity over lotteries, land-based casinos, and slot machine arcades (Source).

This partial liberalisation is scheduled to take effect by January 1 of next year with the first licenses likely issued in 2026 so that new competitors can launch by 2026–2027 (Source). The forthcoming licensing regime will introduce a tax and fee framework for private operators.

As currently envisioned, licensed online gambling companies will be subject to a 22% gross gaming revenue tax on their operations in Finland (Source). Regulators will also implement B2B licensing for gaming software suppliers and collect fees for those licenses (Source).

The new system will be overseen by a dedicated supervisory agency under the Ministry of Finance, with powers to issue, suspend or revoke licenses and enforce regulations. While details are pending, it’s expected that Veikkaus’ competitive arm would pay the same 22% GGR tax as its new rivals, creating a level field, while its lottery arm may continue under the old lottery tax.

Anticipated Market Developments

• Entry of International Operators: The introduction of a licensing system will allow private gambling companies to apply for licenses, fostering a more competitive environment.
• Product and Marketing Innovations: With new entrants, Finnish consumers can expect a broader array of online casinos and betting platforms. These platforms are likely to offer Finnish-language services, competitive odds, poker networks, and features such as live casino games, enhancing the current offerings. This diversification aims to stimulate market growth, mirroring trends observed in Sweden and Denmark following their market liberalisations. 

Regulatory Considerations

• Marketing restrictions: Despite the anticipated increase in advertising, the proposed law includes strict limitations to ensure responsible marketing practices. Advertising must not target minors or vulnerable individuals, and the use of minors in advertisements is explicitly prohibited. Influencer marketing and certain sponsorships are also restricted to prevent aggressive promotional tactics. 
• Responsible gambling measures: Operators will be obligated to monitor player behaviour and offer tools for managing play to minimise gambling-related harm. Mechanisms to detect, prevent, and intervene in potential misuse and criminal activity, such as betting manipulation and fraud, will be implemented. 

Evolving consumer preferences

• Live betting and in-play wagering: Globally, live betting and in-play sports wagering have gained popularity, and Finnish bettors are part of this trend. Sports such as hockey and football are particularly favored for live bets during matches, offering a more interactive experience. 
• Interactive casino experiences: In the online casino sector, live dealer games and innovative slot features are attracting Finnish players seeking engagement beyond traditional slot reels.

Future outlook

The Finnish iGaming market stands on the threshold of a transformative shift, with moderate growth expected in the near term and stronger expansion forecasted post-2026.

During the interim period (2024–2025), Veikkaus is likely to continue experiencing flat or declining revenues, largely due to tightening loss limits and the anticipation of future competition. This period serves as a transitional phase as Finland prepares to open its market.

The real growth is expected to begin in 2026, when the new competitive licensing regime is introduced. As previously unregulated offshore activity is brought under Finnish oversight, total market gross gaming revenue is projected to rise, supported by increased marketing activity and a broader range of licensed offerings.

One of the key government objectives is improved channelisation – encouraging players to move from unlicensed platforms to licensed ones. The target is to lift the white-market share well beyond 50%, possibly toward 80–90%, similar to successful outcomes in Sweden following its market liberalisation.

If achieved, this shift could drive Finland’s iGaming GGR above the €2bn mark within a few years, reversing the stagnation that has defined recent performance under the monopoly model.

The Finnish state will benefit from new sources of tax revenue, though it will also bear the increased responsibility of regulating a more complex market with multiple licensed operators. Market competition is expected to intensify, which should lead to improved products, better customer experiences, and more innovation across platforms.

The coming years will be pivotal, as regulators finalise detailed licensing frameworks, issue approvals, and begin enforcement. If executed effectively, Finland could replicate the balanced and successful transitions seen in Sweden and Denmark, fostering both sustainable market growth and strong consumer protection in the evolving iGaming landscape.

As Finland prepares to open its market, now is the time to position yourself for success. With Delasport by your side, you’ll gain access to unparalleled industry expertise, deep regulatory insight, and a trusted partner committed to your growth. Reach out today – and ensure you’re not just ready for the change but confidently leading it.