Quick Summary
- Finland’s regulated online gambling market will launch in 2027.
- Affiliate marketing will be prohibited under the new regulatory framework.
- The decision distances Finland from standard European practices, where affiliates play a key role.
- The ban raises uncertainties around consumer protection, channelisation, and operator marketing strategies.
What Happened
As Finland prepares to overhaul its online gambling landscape, policymakers have confirmed that affiliate marketing will be completely banned under the forthcoming regulatory framework, slated to take effect in 2027. This prohibition forms part of a wider set of regulatory reforms designed to liberalise Finland’s gambling market after decades of state monopoly.
In contrast to other European jurisdictions where licensed affiliates are integral to the iGaming ecosystem, Finland’s government has opted for a stringent approach. The ban covers all forms of affiliate promotion, preventing third-party marketers from advertising legal gambling services to Finnish consumers.
Why It Matters
The prohibition of affiliate marketing in Finland, at a time when the market is transitioning from a monopoly to open licensing, is significant for several reasons. First, affiliates play an essential role in regulated European markets as drivers of channelisation—the process of directing consumers towards legal, licensed offerings rather than offshore sites. Affiliates contribute to player education, responsible gambling messaging, and the broader compliance ecosystem by promoting only licensed brands and adhering to marketing standards.
By excluding affiliates from the regulated Finnish market, policymakers risk limiting licensed operators’ ability to compete for player attention. In markets like Sweden, Denmark, and the Netherlands, affiliates have provided valuable reach and consumer engagement, helping to achieve channelisation rates often above 90%. Without this support, licensed operators may find it harder to attract local players who are accustomed to varied international offerings, potentially slowing the migration away from unlicensed sites—a core aim of the regulatory overhaul.
Additionally, there are ambiguities in the current legislative language. Industry observers, as reported by SBC News, note that the affiliate ban contains “a lot of room to be more precise,” leaving open questions about enforcement and the scope of what constitutes ‘affiliate activity.’ Such vagueness may create compliance challenges and complicate market entry for international operators.
Industry Context
Finland is not the first European country to grapple with how to manage affiliate marketing. While many jurisdictions have adopted licensing requirements and strict codes of practice for affiliates, outright bans remain rare and generally controversial. For example, the UK, Sweden, and Spain have implemented robust affiliate frameworks to support responsible marketing without resorting to prohibition.
Finland’s decision contrasts with the trend towards regulation rather than exclusion. Affiliates across Europe have evolved to become de facto compliance partners, monitoring marketing on behalf of operators, amplifying responsible gambling messages, and funnelling players towards licensed sites. The Finnish ban, therefore, diverges from proven industry practice aimed at increasing player protection while supporting market growth.
There is also a credibility risk. By cutting off affiliate traffic, the regulated market could see lower total addressable reach for legitimate operators, potentially reducing channelisation rates. International experience suggests that player awareness of new regulatory protections, deposit limits, and fair dispute resolution often depends on robust, multi-channel marketing—including efforts by affiliates.
Regulatory Background
Finland’s move towards market liberalisation follows years of criticism from the European Commission and industry stakeholders over its state monopoly model. With the Veikkaus monopoly slated for partial dismantlement, the government is preparing a licensing system for commercial operators and suppliers. The prohibition of affiliate marketing is embedded within this new regime—ostensibly as a measure to consolidate control over advertising and consumer communication.
However, the relevant provisions have attracted scrutiny for their broad scope and relative lack of operational detail. Stakeholders have called for clearer definitions to avoid inadvertently penalising informational websites or unintentionally fostering a shadow market for unauthorized promotions.
What Happens Next
Finland’s government has committed to finalising the precise legislative and regulatory structure by the end of 2025, leaving stakeholders with a window to provide feedback and seek clarification. Operators, suppliers, and affiliate groups are expected to lobby for more nuanced rules that balance player protection with effective channelisation and responsible marketing. The ultimate success of Finland’s market liberalisation may depend in part on whether policymakers are willing to revisit the affiliate ban as the 2027 launch draws closer.
Sources
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