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Finland's New Gambling Regulator: A Game Changer for Compliance

As Finland gears up to launch its regulated gambling market on July 1, 2027, all eyes are on the newly established regulatory body that will replace the National Police Board (Poliisihallitus) as the primary overseer of the gambling landscape. This shift comes with a fundamental change in authority, focusing not only on defining regulations but, crucially, on enforcing them.

The New Oversight Authority

The new entity, the Permit and Supervision Agency (Lupa- ja valvontavirasto), is not just a minor revamp of the existing system. It possesses extensive powers designed to ensure that the licensed gambling market operates safely, while aggressively tackling the grey market that previously thrived on weak enforcement. This new regulatory framework is critically needed as the country moves towards a more organized gambling environment.

Emphasis on Strict Compliance

One of the primary responsibilities of this agency will be to ensure that all licensed gambling operators comply with stringent standards. The following key features define its broad capabilities:
1. Penalty Fees (Seuraamusmaksu): The agency holds the authority to impose significant administrative fines on operators who breach their licensing agreements, safety protocols, or advertising regulations. This means that operators will have to tread carefully, as non-compliance could lead to severe financial repercussions.

2. License Revocation: In extreme cases, the agency has the power to revoke gambling licenses. Serious infractions or repeated violations of player safety guidelines will result in this severe penalty, a substantial shift from the previous reliance on criminal law.

Enhanced Identity Verification Standards

The Compliance Standard

The new regulatory framework mandates a robust verification process for player identities, particularly under Section 28 of the proposed legislation. Each transaction and login session must be authenticated to curtail issues related to money laundering and the prevention of underage gambling. This shift marks a significant technological advancement, aligning closely with modern “instant play” gaming experiences.

Market Impact

The Finland market is expected to consolidate around Bank-ID authentication technologies for its Know Your Customer (KYC) practices. This technology has become the backbone for instant casinos—locally known as pikakasinot. Given the regulator's stringent identification requirements, this streamlined authentication method is anticipated to dominate the Finnish gaming landscape.

Scrubbing the Web: Combating Illegal Operations

For the first time, the new authority will wield the power to order the removal of illegal gambling content from the internet. This involves:

• - Content Takedowns: The agency can mandate service providers to take down unlicensed gambling advertisements and material, aiming to protect consumers from illegal operations.
• - Domain Blocking: In very serious circumstances, the regulator has the authority to have non-compliant domain names removed from the .fi register, effectively eliminating illegal sites from Finnish cyberspace.

Comments from Industry Experts

Tommi Korhonen, CEO of Bonusetu, remarked, “This new agency is more than an administrator; it acts as a police force, empowered to enforce regulations through penalties, domain blocks, and license revocations. For operators, embracing compliance isn’t just operationally beneficial, it is essential for survival.”

Funding the Regulatory Actions

To bolster its enforcement capabilities, the new agency will rely on funding directly from licensed operators through an annual Supervision Fee (valvontamaksu), which will vary based on gross gaming revenue (GGR). This tiered fee structure ensures that the largest operators contribute the most to maintaining market integrity, enhancing the industry's overall health.

About Bonusetu.com

Founded in 2016, Bonusetu.com has emerged as a leading market intelligence platform within the Nordic iGaming sector. The platform excels in regulatory analysis and offers detailed insights into payment technologies, ensuring transparency for Finnish consumers and stakeholders.

As Finland prepares for this substantial regulatory maturation, the establishment of the new Permit and Supervision Agency symbolizes a robust step toward a safer and more accountable gambling environment.