As Finland prepares to amend its gambling regulations, a key issue emerges: Will the new legislation impose a ban on affiliate marketing?
The Finnish government is expected to release a revised version of the gambling bill by the end of October, aiming to transition from a state monopoly to a multi-license system by January 2027. The bill will be submitted for EU review, expected to open the market to licensed operators and address a range of regulatory issues.
While the gambling industry eagerly anticipates these changes, certain sections of the initial draft have raised concerns. One of the most controversial issues is the potential prohibition of affiliate marketing.
According to a report by Vixio, some experts point out that the current version of the bill is not clear enough. The term "third-party advertisers" could refer to affiliates as well as traditional print media, sparking calls for further clarification.
Channel Concerns
Industry stakeholders are worried that such a ban might inadvertently benefit the black market, pushing players towards unlicensed sites.
Jari Vahanen, head of a Finnish gambling consultancy firm and former executive at Veikkaus, believes the proposed ban on affiliates is problematic. He thinks excluding affiliates from the regulatory framework could lead to an increase in advertising by unregulated operators, undermining the goals of the bill.
Veikkaus, a state-owned monopoly, will lose much of its dominant position under the new law, and its market share has been declining as the grey market expands. According to Vahanen's estimates, Veikkaus's online market share has already dropped to 50.9% in 2024 and is expected to decline further.
Response from EGBA
The European Gaming and Betting Association (EGBA) has also expressed strong concerns about the proposed marketing restrictions. In a press release, EGBA Secretary General Maarten Haijer calls for revisions, warning that "the proposed bans on affiliate marketing and social media advertising could be counterproductive." He believes these channels play a crucial role in directing consumers to regulated platforms, and excluding them could lead players to unlicensed sites.
EGBA suggests incorporating affiliates into the regulatory framework and allowing social media advertising under clear guidelines. "Both are valuable tools in directing players towards licensed operators. By implementing clear guidance, such as mandatory safer gambling tips, Finland can utilize the power of these marketing channels while maintaining high levels of consumer protection," the association states.
Haijer also criticizes the comprehensive ban on bonuses, arguing that it would put new licensed operators at a disadvantage in competition with unregulated sites. He suggests a more nuanced approach, allowing bonuses under specific conditions and setting guidelines for responsible use to better protect consumers and ensure market competitiveness.
Next Steps
As Finnish gambling legislation nears finalization, the debate over affiliate marketing remains a key issue. The industry's response and potential revisions to the bill will be closely watched, as these will determine the future dynamics of Finland's gambling market and its alignment with broader EU regulatory trends.
