Advantages of Licensing System in Finland's Online Gambling Industry: A Perspective from Heikki Koivula, Senior Compliance Advisor at Legal Gaming Attorneys at Law
Heikki Koivula, Senior Compliance Advisor at Legal Gaming Attorneys at Law, provides an analysis of the transformative potential of a licensing system for Finland's evolving online gambling industry
The online gambling industry is constantly evolving, and regulatory frameworks play a crucial role in shaping its direction. Finland is no exception to this, and a shift to a licensing system for online gambling is generating considerable interest within the industry. In this article, Heikki Koivula, Senior Compliance Advisor at Legal Gaming Attorneys at Law will explore the potential advantages of adopting a licensing system, its impact on player protection and gambling addiction, and the changes it might bring to the Finnish gambling market in terms of competition, innovation, and consumer accessibility.
Advantages of a Licensing System for Online Gambling in Finland
As Koivula explains, switching to a licensing system for online gambling in Finland will bring several advantages. One key benefit is that the rules for operating in the Finnish market will become clear for all participants. This will ensure that every operator who obtains a local license plays by the same set of rules, fostering a level playing field and creating a healthier competitive environment. Currently, a lack of standardized rules has resulted in an uneven playing field, with offshore operators facing fewer restrictions than the monopoly operator, Veikkaus.
Impact on Gambling Addiction and Player Protection
Koivula anticipates that introductions of a licensing system will positively impact on protection of gambling addicts and player protection overall. With all operators required to comply with the licensing rules and regulations, a more robust system for safeguarding players can be established. Companies seeking to distinguish themselves in the licensed market are more likely to prioritize responsible gaming practices, which might also increase customer loyalty. To achieve this, it is essential to maintain a high channelisation rate, ensuring that the majority of players access licensed services rather than unregulated offshore platforms. The threat of losing their license will motivate operators to uphold stringent player protection measures. The measures which will be included in the new regulation to enhance player protection will become clearer during the preparation process of the new regulation.
Changes in the Finnish Gambling Market
Koivula suggests that, upon the implementation of a licensing system, the Finnish gambling market is expected to experience significant changes. The market will mature, presenting a more stable and reliable landscape for both operators and consumers. Companies will be compelled to focus on innovation, quality, and the development of their offerings to attract and retain players, complying with the licensing conditions. Consequently, the availability of fair and regulated alternatives for consumers will increase, encouraging a more competitive market. The licensing system will create clarity and strength in the competitive landscape, benefiting both companies and consumers.
Conclusion
Koivula posits that the potential advantages of transitioning to a licensing system for online gambling in Finland are diverse. From creating a fair and level playing field for all operators to enhancing player protection and encouraging innovation, the benefits are significant. As the Finnish gambling market evolves towards maturity, it is crucial to prioritize responsible gaming practices and offer consumers a safe and regulated environment. By doing so, Finland can set an example for other jurisdictions, showing how a well-implemented licensing system can drive positive change in the online gambling industry. The new government has set a deadline for the new regulation to enter into force by January 1, 2026.