Mika Kuismanen: “Finland’s gambling reform is at least a decade overdue”

(AsiaGameHub) –   Mika Kuismanen, CEO of the Finnish Trade Association for Online Gambling, discussed Finland’s transition from a state-run monopoly to a regulated licensing system with Focus Gaming News.

Exclusive interview.- As Finland prepares to dismantle its long-standing gambling monopoly, the nation is on the brink of a major regulatory shift within the European gaming sector. Moving to a licensing framework represents more than just a structural change; it is a vital reaction to falling channelisation rates and the rising influence of offshore, unlicensed operators.

In this context, Focus Gaming News interviewed Mika Kuismanen, CEO of the Finnish Trade Association for Online Gambling, to evaluate the impact of this widely anticipated reform.

Finland is currently undergoing a process that will surely serve as a milestone: the conclusion of the gambling monopoly and the launch of an open online market. What are your initial thoughts on this transition? Do you believe the timing is appropriate, or is it overdue?

Shifting from a total monopoly to a licensing model is undoubtedly a positive step for several reasons. Currently, the monopoly holder’s market share in competitive sectors is alarmingly low, dropping below 30 per cent. This leads to substantial losses in state tax revenue and issues regarding the oversight of gambling within Finland. Finland has essentially been a ‘wild west’ regarding gambling, and this reform serves to regulate our system rather than liberalise it. Regrettably, this reform is at least a decade late. A sharp decline in channelisation has been evident for quite some time, but the political resolve to end the monopoly was previously absent.

“Finland is really a ‘wild west’ when it comes to gambling and the reform regulates our system, not liberalises it.”

Mika Kuismanen, CEO of the Finnish Trade Association for Online Gambling.

Strictly regulated markets are often criticised by those who fear that overly restrictive rules drive players toward unlicensed operators. How do you perceive this risk in the Finnish context?

The Gambling Law enacted last December offers a solid foundation for building a responsible market in Finland. The legislation provides operators with sufficient motivation to seek a Finnish licence. My primary concern lies in how the supervisory body will function. If it focuses almost exclusively on overseeing the licensed sector—similar to the Swedish model—without dedicating resources to curbing the black market, there is a significant risk that unlicensed operators will gain market share. We require a regulator that will proactively guide the market.

What role will the Finnish Trade Association for Online Gambling occupy in this new ecosystem, and how will it adapt as the market matures?

The Rahapeliala played a key role in shaping the upcoming gambling legislation, thanks to the professionalism and active engagement of its member companies. Our advocacy efforts will continue, as political risk remains a constant factor, as seen in other jurisdictions. This is evident in the frequent, often irrational, legislative threats to impose further restrictions on the gambling sector.

The industry will remain an active participant now and in the future, engaging in dialogue with regulatory authorities and government bodies, while representing the sector in media and industry-related forums.

Which elements of the new regulatory framework require further refinement before the 2027 launch?

The Gambling Act does not require, nor should it undergo, changes before the market opens on July 1, 2027. As mentioned, the law is balanced for all stakeholders. What remains to be clarified are the technical requirements for operators, such as the protocols for reporting gaming events to the regulator. Additionally, discussions regarding how the authority will issue guidance on advertising and marketing have yet to take place.

The licensing process for Finnish online gambling has recently commenced. What has been the initial reaction from operators preparing for the July 2027 deadline?

Operators are showing great enthusiasm for the Finnish market. We have seen a surprisingly high volume of inquiries and requests for guidance, especially given that Finland is not a particularly large market. I anticipate a significant number of licence applications; at the time of this writing, the Police Board has already received 24 applications, despite there being well over a year until the market officially opens.

Looking ahead, what is your outlook for the industry’s future in Finland?

I am cautiously optimistic. The law provides a strong opportunity for the industry to develop in Finland. However, it is important to note that the sector faces pressure from multiple sides. Political demand for regulation is intense, and some politicians fail to grasp that irrational regulation only fuels the black market. The upcoming election cycle (2027-2031) is critical; if hasty, ill-conceived changes are made to the law without empirical justification, the industry risks a negative trajectory.

“The law provides a good opportunity for the development of the industry in Finland.”

Mika Kuismanen, CEO of the Finnish Trade Association for Online Gambling.

Do you believe a harmonised set of rules across European gambling markets is realistic, and would that genuinely simplify things for operators?

That is an excellent question, and it is a topic that receives far too little consideration. I subscribe to the view that European-level regulation would be beneficial, particularly in preventing or hindering the operations of unlicensed companies. This would be especially valuable regarding issues like payment processing and IP blocking. It would also mitigate the risk of individual nations acting as free-riders.