Finnish state monopoly: Veikkaus model

How the monopoly worked (model core)

1) A single operator and uniform rules.

Veikkaus was responsible for all key verticals including online channels, land machines and Casino Helsinki. This simplified the centralized control of RG/KYC/AML, as well as a single standard for marketing and payments.

2) Responsible play and verification.

The bet was on player identification, time/amount limits, self-exclusion and low-key advertising. The monopoly design made it possible to quickly introduce single "fuses" at the country level.

3) Community mission.

Net profit went to budget and quasi-budget funds - part of the "social contract" in exchange for an exclusive. This strengthened the legitimacy of the model among voters.

Why monopoly is bursting at the seams

The digital era blurs the boundaries: the player goes to offshore sites where there are no local restrictions, and the budget loses taxes. The authorities recorded a significant leakage of online expenses outside Veikkaus and concluded: for a better "sewage system," a regulated competitive segment of online verticals is needed. In 2025, the government introduced a bill to change the model.

Transition: what changes from 2027

1) From monopoly to mixed system.

Online betting and online casinos (including slots and sweepstakes) open to licensed private operators. At the same time, lotteries, instant lotto and ground machines/casinos remain with Veikkaus. Such a "hybrid" is designed to combine online competition with public mission in traditional products.

2) Timeline reforms.

2025: The government files a bill (HE 16/2025).

2026: introduction of the framework law and preparation of procedures.

January 2027: start of the multi-license model online (acceptance of operators to the market).

3) National self-exclusion.

The project provides for a unified register of self-exclusion, logically close to Scandinavian solutions (in the spirit of Spelpaus). The choice of ban options is expected: for all games, by type of games or by operators.

4) The role of Veikkaus in the new reality.

Veikkaus is preparing to compete online, while strengthening the international B2B direction of Fennica Gaming (bringing its own content/technologies to foreign markets). This reduces dependence on the home market.

How this will affect the product, marketing and compliance

For the players

More legal online options, uniform rules for responsible play and verification from licensed brands.

National self-exclusion and understandable limits are less "gray" zones and disputes.

For operators

Strict requirements for KYC/AML, RG (limits, cooling, reality checks), technical content certification and reporting.

Discreet advertising: age filters, a ban on misleading offers and strict liability for affiliates.

Need for local processes (data, logging, supervision access, change of releases as agreed).

For the state

The goal is to push the illegal online segment into the "white" zone, collect taxes and strengthen the protection of vulnerable groups, without abandoning the Veikkaus public mission.

Veikkaus strengths and weaknesses (retrospective)

• One center of responsibility: it is easier to implement RG controls, audits and sanctions.
• Transparent distribution of profits for public purposes.
• Uniform UX/compliance standard without a race to "aggressive" marketing.

• Limited assortment and UX innovations online - the player goes offshore.
• Reducing "sewerage" → falling taxes and less control over behavior.
• Reputational risks are concentrated in one brand; pressure on Veikkaus for both outcomes and incidents. (Against this background, the operator is rapidly rebuilding the business structure and exports through Fennica Gaming.)

What to do for operators targeting Finland

1. Prepare a license pack for online verticals: RG/KYC/AML policies, contracts with certified providers, change-management processes and unchangeable logs.

2. Plan marketing "Scandinavian": strict copyright without promises of "earnings," age/behavioral filters, white affiliates.

3. Integrate national self-exclusion and provide convenient deposit/time/loss limits.

4. Collect a local payment matrix with providers compatible with AML and privacy requirements.

5. Make the product "honest by default": clear probabilities, lack of dark patterns, transparent bonuses.

The Veikkaus model has served as a "social filter" for Finnish gambling for decades, concentrating control and profit from a single operator. But digital competition has shown the limits of monopoly online. Since 2027, Finland is moving to a mixed system: the monopoly is retained by lotteries and the terrestrial segment, and the online market receives licenses - with hard RG/KYC/AML and a single self-exclusive ecosystem. It is a trade-off between public mission and market efficiency that should return players to the legal sector and make the rules the same for everyone.