Betsson’s BML Group becomes first MGA licence holder fined by Finnish police

Finland’s National Police Board has hit BML Group, a Betsson AB subsidiary, with a €2.4m fine alongside a prohibition order against the firm’s marketing activities.

The law enforcement agency’s decision was made on 7 April and is due to come into force on 3 July, with the police asserting that BML has targeted mainland Finland with advertising ‘via multiple channels and for an extensive period’.

BML, which operates under Betsson’s Malta Gaming Authority (MGA) licence, is accused of posting material on its website that directly or indirectly promotes gambling products in Finland, where a monopoly is held by sate-owned betting, gaming and lottery firm Veikkaus.

Antti Koivula, Partner and Legal Advisor at Legal Gaming Attorneys at Law, informed SBC: “This is breaking news, as it is the first time ever the National Police Board has issued a prohibition order and a conditional fine for an MGA licensed operator. 

“The conditional fine of €2.4m is also a record high, the previous record fine being on the level of €800,000. This decision has been long coming and it appears likely that another big operator will receive a similar, if not bigger, fine soon.”

The Police Board added that BML had “significant financial interest” in continuing illegal marketing activities, which authorities believe had been practised despite attempts at control measures.

On the other hand, the police also noted that the Betsson subsidiary had undertaken efforts to reduce the marketing activity, so investigators considered a mitigating factor when determining the size of the penalty.

Under the police’s order, BML must refrain from targeting customers on the Finnish mainland – including using podcasts, video podcasts or articles – or use Finnish celebrities in campaigns in a manner that is attractive to customers. The order also applies to BML marketing on other websites used by the group.

It has not been confirmed whether the enforcement against BML is the conclusion of an investigation announced by the National Police Board back in April 2023.

The police detailed at the time, however, that it had launched a probe into a Malta-licensed operator for “aggressive marketing”, largely in the form of text communications, with some messages allegedly sent to underage consumers.

Under the Finnish Lotteries Act, firms without a licence in Finland – where as mentioned above, state-owned Veikkaus is the primary betting operator – are prohibited from marketing to the country’s mainland.

Changes could be on the way, however, as Finnish lawmakers evaluate a reform of the monopoly system to adopt a partial-licence model, which would allow privately held firms to offer online betting and casino products, Betsson’s main area of operations.