In a seminal move by Finnish authorities, the National Police Board (NPB) unmasked a blacklist on the 29th of February aimed at blocking financial transactions to illegal gambling entities, with the spotlight pointed squarely at Betsson, BML Group, and a contingent of their associated brands. An unprecedented turn of events, this action marks the first instance of its kind where a gambling operator has been censured in this manner within Finnish borders.
The seeds of the current developments were sown in a courtroom earlier this month, where Betsson found its arguments fall on deaf ears following a legal skirmish with the NPB. As a result of this defeat, an array of financial institutions, including banks, payment services, and virtual currency facilitators, are now required to staunch the flow of funds from Finland to the coffers of BML Group.
Tracing back to May of the preceding year, BML Group was embroiled in legal turbulence when a verdict admonished them for zeroing in on Finnish gamblers through marketing onslaughts, transgressing the established Finnish Lotteries Act. The fallout from this legal affront was substantial; BML Group found itself facing a hefty fine of €2.4 million, and a stern prohibition from advertising its gambling services within the country followed suit.
This move is underscored by the Finnish government’s stringent policy that reserves the right to conduct and market gambling activities exclusively to Veikkaus, the state’s gambling monopoly. The breaches by BML Group, as identified by the NPB, highlighted a flagrant and extended targeting of mainland Finnish players, an act at odds with the national regulation.
Finnish regulators initiated payment blocking protocols at the onset of 2023, underscoring a vigorous campaign to clamp down on a burgeoning black market. This shadow gambling economy is purported to represent a staggering half of the nation’s overall gambling activity. Reflecting on similar circumstances, Betsson had previously encountered standoffish regulatory environments as evidenced by its snags in Norway in 2021 and a blockade in the newly regulated igaming Dutch market within that same time span. A significant retreat transpired as numerous high-profile brands, including Betsson, withdrew from the Dutch market in reaction to abrupt amendments in the Remote Gambling Act.
While today’s blacklisting of Betsson marks a significant chapter in Finland’s battle against illegal gambling operations, it coincides with governmental strategies aiming to dismantle Veikkaus’ monopoly. By no later than 2026, Finland plans to pivot to an open licensing model, with the aspiration of mitigating gambling-related harms through enhanced legal channelization, as professed by government officials.
In anticipation of the monopoly’s dissolution, Veikkaus has proactively engaged with OpenBet in a contract expected to revamp its fixed-odds betting system, with an eye towards harmonization with OpenBet’s array of offerings. This technological overhaul promises to be evident both at point-of-sale locations and on the digital Veikkaus.fi platform before the close of 2024.
Veikkaus, in preparation for the seismic shift within Finland’s gambling landscape, has delineated a sweeping organizational restructuring, including a workforce reduction affecting up to a quarter of its employees. This realignment will entrust operations to three distinct business units, resulting in the loss of employment for an estimated 185 to 215 individuals, while approximately 110 to 150 personnel will be subjected to significant alterations in their job roles.
In essence, today’s blacklisting of Betsson Group signals the determination of Finnish authorities to enforce compliance with their gambling laws, even as the country steers toward an open, regulated gambling market in the near future.
