Finland's gambling reform delayed as Malta submits detailed opinion

The European Union’s notification process for Finland’s sweeping new gambling legislation has been delayed by a month after Malta submitted a detailed opinion on the proposal. This move extended the standstill period until April, pushing back Finland’s plans to introduce the legislation to Parliament, originally set for the last week of February. Consequently, the Finnish Parliament is now expected to debate the new law in the coming days.

The delay highlights Malta’s concerns over the impact of Finland’s regulatory shift, which will introduce a licensing system for online gambling, replacing the current monopoly-based framework. As one of the EU’s key hubs for online gaming, Malta has closely followed Finland’s regulatory developments, given the potential economic and fiscal implications for its thriving gaming sector.

MGA licence: A trusted choice for Finnish casino players

For years, Finnish online casinos have relied on the Malta Gaming Authority (MGA) licence, which has been widely recognized as one of the most reputable and trusted gaming licences in Europe. The MGA licence has offered Finnish players a tax-free gaming environment, given Finland’s regulations on winnings from EU-licensed casinos. Alongside the MGA licence, the Estonian gambling licence has also gained strong appreciation among Finnish players, providing a secure and well-regulated casino alternative for Finns, Suomicasinot.fi reports.

The transition to a Finnish licensing system will mark a significant shift for many operators and players who have long preferred Malta-licenced casinos for their reliability and regulatory standards. While Finland’s new system aims to enhance local oversight, it remains to be seen how players and industry stakeholders will adapt to the changes.

What Finland’s regulation means for Malta

Malta has long been home to numerous gaming companies that operate in multiple jurisdictions, including Finland. The introduction of a licensing system in Finland means that online casinos targeting Finnish players will need to obtain a Finnish licence to continue legally offering their services in the country. This shift will likely result in a reduced tax intake for Malta, as a portion of gaming revenues currently flowing through Malta-based companies will be redirected to Finland.

While it remains unclear how many Malta-licenced operators will seek Finnish licences, the move follows a broader trend of EU member states tightening control over their domestic gambling markets. Sweden and the Netherlands, for example, have implemented similar national licensing regimes in recent years, prompting adjustments from companies headquartered in Malta.

Additionally, the change could trigger demographic shifts, particularly among Finnish expatriates in Malta’s gaming industry. Some Finnish professionals working for Malta-based gambling firms may consider relocating back to Finland as local job opportunities emerge within the newly regulated market. While this is unlikely to lead to a mass exodus, it is a factor that the industry and the Maltese government will be monitoring closely.

Key changes in Finland’s gambling legislation

Finland’s new gambling law marks a historic transformation of the country’s regulatory framework. Under the current monopoly system, state-owned Veikkaus has exclusive rights to most forms of gambling. However, the proposed reform will introduce a dual licensing system, allowing private operators to apply for licences to offer online casino games and sports betting.

One of the key objectives of the reform is to curb the offshore gambling market, which has grown significantly in Finland despite existing restrictions. By offering local licences, Finland aims to bring offshore operators into a controlled framework, ensuring they contribute tax revenue to the Finnish state while adhering to responsible gambling measures. The new legislation will also include stricter advertising controls for Finnish betting sites, enhanced player protection mechanisms, and increased measures against unlicenced operators.

While Finnish policymakers argue that these changes will enhance consumer protection and increase tax revenue, they have faced criticism from some industry players, particularly regarding restrictions on marketing and financial transactions for non-licenced operators.

Looking ahead

The delay in Finland’s gambling legislation due to Malta’s intervention underscores the complexity of regulating online gambling within the EU’s single market. As Finland moves forward with its reform, Malta will be watching closely, given its position as a leading hub for gaming companies. While the immediate financial impact remains uncertain, it is clear that Finland’s decision to regulate will bring both challenges and opportunities for the industry, including potential shifts in tax revenues and employment trends.

With the Finnish Parliament set to debate the law in late March, the coming months will be crucial in determining how this new framework takes shape and what it means for both Finland and the wider European gambling sector.

Disclaimer: Play responsibly. Players must be over 18. For help visit https://www.rgf.org.mt/.