Finland’s Gambling Reform Puts Estonia’s Casinos at a Crossroads

Finland is preparing for a major change to its gambling market. The country is moving away from a system built around Veikkaus’s monopoly. 

From July 2027, licensed private operators will be able to compete in online casino games and betting. The change could also reshape the market in neighbouring Estonia.

For Estonia, the reform raises an important question. What happens to operators that already serve Finnish players from across the Gulf of Finland? 

Some brands have built a strong Finnish audience over many years. They often use localised websites, Finnish-language support and services designed for customers in Finland.

The answer is unlikely to be a simple retreat from Estonia. A Finnish licence will give operators another option rather than replace their existing licence. 

Brands with a strong Finnish audience can enter the regulated Finnish market. Others can focus on Estonia and other countries where they are allowed to operate.

Finland’s competitive market starts in 2027

Finland adopted its new Gambling Act in January 2026, and licence applications opened in March. 

The competitive market itself starts on 1 July 2027. Until then, Veikkaus keeps its exclusive position in the gambling products covered by the current monopoly.

Interest from the industry appeared early. By 8 June 2026, the National Police Board had received over 50 licence applications. Most applicants were foreign operators especially from Malta. 

This level of interest suggests that international gambling companies already see value in entering the Finnish market.

An Estonian licence does not cover Finland

Estonia has an established gambling licensing system. 

Operators need an activity licence and an operating permit from the Estonian Tax and Customs Board, or EMTA. An operating permit is also required for remote gambling in Estonia.

These rules have made the Estonian system familiar to players across the region. Yet an Estonian licence does not give an operator a Finnish licence. The two countries have their own gambling laws, licences and regulators.

That point becomes more important after July 2027.

Estonian casinos with a large Finnish customer base will need to decide whether a separate Finnish licence makes sense. Revenue and customer numbers will matter. So will marketing plans and the cost of meeting Finland’s rules.

Tax rules could change player behaviour

Taxation has long shaped Finnish players' perceptions of foreign casino sites and their interest in casinos within the EEA.

Under the current rules, winnings from gambling organised legally within the EEA are generally free from Finnish income tax. This has helped EEA-licensed casinos stand apart from many operators based outside the area.

The basic EEA tax benefit does not simply disappear in 2027. 

Winnings from games legally offered in another EEA country can remain tax-free. There is, though, an important limit under the new system.

From July 2027, winnings can be taxable if an operator offers games for play in Finland without the Finnish licence that those games require. The rule can apply no matter which country the operator uses as its base. 

Finnish authorities can look at how a site targets the market. 

Active marketing in Finland and Finnish-language websites are among the signs mentioned in the government proposal. Player registration and payment arrangements can also form part of the assessment.

Finland and Estonia have very different tax rates

Operators must also compare the cost of the two systems. 

From July 2027, gambling supplied under Finland’s licensing system will face a lottery tax of 22 per cent of gambling revenue. The tax is based on the gambling margin, which means stakes after player winnings are deducted.

Estonia uses a much lower rate for remote gambling. Following a correction that took effect on 1 March 2026, remote games of chance and skill are taxed at 5.5 per cent of stakes after prizes are deducted.

The difference is large, but tax is not the only factor. 

A Finnish licence gives an operator access to the regulated domestic market. It also allows the company to market its services within Finland’s new rules. That access may be valuable for a brand with many Finnish customers.

Game suppliers also face new rules

Casino operators are not the only businesses affected by the reform. Finland is also creating a licensing system for gambling software suppliers. 

The Finnish Supervisory Agency will take over licensing in July 2027 and will start issuing software licences at that point.

Another change follows in July 2028. From then on, Finnish gambling licence holders can use only software supplied by companies with the required licence. 

Casino brands will need to check whether the studios they work with plan to join the Finnish system.

The rule could affect game choice during the first years of the market.

Large international studios may have a strong reason to apply if Finnish demand is high. Smaller suppliers may take more time to decide whether the extra licence is worth the cost.

This could leave some Finnish casinos with a smaller catalogue at first. Much will depend on how quickly game suppliers enter the system. 

Estonia and Malta already have mature online gambling sectors, so Finnish operators will want enough approved suppliers to offer a competitive range.

Finnish-facing brands face a strategic choice

The reform does not make an Estonian licence less valuable in Estonia. It changes what that licence means for a company whose main customers are in Finland. 

Operators with a strong Finnish identity must decide how important direct access to the new licensed market will be.

Some already use Finnish-language sites, familiar payment methods and customer support aimed at Finnish players. 

For those companies, seeking a Finnish licence could be a natural next step. They would gain access to the regulated market, but they would also face a higher tax rate and new compliance costs.

Other Estonia-licensed operators may decide that Finland is not important enough to justify those costs. Their business may be spread across several countries, or they may have little Finnish traffic. 

Another national licence could then add more cost than value.

The biggest effect may be felt by operators that depend on Finnish customers without holding a Finnish licence. 

The new tax rules, marketing limits and licensing controls will make that position harder after July 2027. This is especially true for sites built around the Finnish market.

Estonia will remain an important iGaming jurisdiction close to Finland. The key change is the position of operators that have built a large business around Finnish players. 

From July 2027, licences on both sides of the Gulf may become the stronger option for the most Finnish-facing brands.