The status of foreign casinos in Finland is changing: how will this affect e-sports?

The status of foreign casinos in Finland is changing: how will this affect e-sports?

Sponsor support is vital for e-athletes, as few are able to support themselves with prize money from competitions. However, eSports athletes, especially those just starting out, find it difficult to find partners, as most companies prefer to sponsor competitors in traditional sports.

This situation is about to be alleviated as Finnish gambling legislation is being reformed. Currently, foreign casinos are not allowed to advertise in Finland, so they cannot, for example, put their ads on e-athlete's clothing. After the change in the law, this may be possible.

Many new online casinos may well be interested in sponsoring e-athletes. That is why many e-athletes are already looking forward to the scrapping of Veikkaus' monopoly.

But are foreign casinos sure to be allowed to market their games in Finland? In this article, we will tell you what is currently known about the future licensing regime.

Why is Finland dismantling the Veikkaus monopoly?

The reason for abolishing the Veikkaus monopoly is that it has not been a good operating model for anyone for a long time.

There are many problems with the monopoly system:

1. Finnish players are not satisfied with Veikkaus' services because of the lack of bonuses and the low return rates.
2. Veikkaus is unable to compete with foreign casinos because the law prevents it from offering bonuses and other benefits
3. gambling addiction is increasing because foreign casinos cannot be required to demonstrate the same commitment to responsible gambling as Veikkaus
4. Foreign gaming companies suffer from a strict marketing ban that prevents them from advertising their games
5. The state loses tax revenue from gambling as Finns move to foreign online casinos

With all parties concerned dissatisfied with the status quo, it was high time for policy makers to take action.

A licensing system will liberalise the casino market

The reform of Finland's gambling system should be completed by 2026 at the latest, when Finland will introduce its own gaming licence, which all foreign casinos will be able to obtain if they wish. The precondition will certainly be a commitment to promote responsible gambling.

The licensing system is a more equitable solution than before, as until now Veikkaus has had exclusive rights to organise and market gambling. In future, all licensed Finnish casinos would be able to operate legally in Finland.

However, the licensing system would not apply to all games, but only to online games and betting. The lottery and physical gaming machines would remain under Veikkaus' control.

Will gambling be completely free to market in the future?

At present, the marketing of gambling is the main source of concern for the designers of the licensing system. People have very different views on whether or not foreign gaming companies should be given a free hand in advertising.

Opponents are concerned about gambling addiction and other gambling harms. If Finns are bombarded with gambling advertisements several times a day, some people's minds may be too much on gambling. For gambling addicts, constant gambling advertising could be a real problem.

That is why some have even suggested banning gambling advertising altogether. Such a drastic solution is unlikely to be adopted, as it would effectively scrap the whole licensing system from the start. Foreign gaming companies will certainly not obtain a Finnish licence if it is of no use to them.

How could gambling marketing be restricted?

It is likely that some form of gambling advertising will be restricted, but no decisions have yet been taken. Other European countries have such restrictions in place:

1. Gambling advertising in public places is banned in Italy, Belgium and the Netherlands
2. Italy has banned gambling advertising on television, radio and in the press
3. Germany allows gambling advertising only at certain times of day
4. Advertising at sporting events is banned in many countries

It remains to be seen how much Finland will follow the example of other countries' licensing systems.

Can foreign gaming companies sponsor e-sports?

Of course, e-athletes are most interested in whether foreign gaming companies will be allowed to place their advertisements on athletes' jerseys, for example. This would provide much-needed financial support for e-sports.

Advertising at sporting events is one of the biggest controversial issues in the licensing system. The problem is that children follow sport avidly, and e-sports are of particular interest to young people.

It would be impossible to prevent them from seeing advertisements from gaming companies if they are displayed on athletes' clothing or at the competition venue.

The desire to protect minors from gambling advertising is understandable. It is equally understandable that gambling companies want to be visible. Why would any company sponsor an e-athlete if they could not tell the public about it?

E-athletes want a sensible solution

This is an exciting situation for all athletes, as the licensing system could turn out to be a good or bad solution. In the best case scenario, players will have a large number of new sponsors. The biggest threat is that even Veikkaus will have to stop sponsoring athletes.

There is also concern that any sponsorship money might end up going only to the most successful athletes after the switch to a licensing system. For example, budding e-athletes could be left to lick their chops if all gambling companies want to advertise only on the shirts of the best in the business.

Summary:

It is a good thing that the Veikkaus monopoly is finally being dismantled. The monopoly system has not prevented gambling problems in the way that was hoped. In other European countries there is less gambling than in Finland, even though competition is more restricted in Finland.

E-sports enthusiasts are looking forward to the move to a licensing system, as new sponsors may be found among the gambling companies. However, it is not yet certain whether the gaming companies will be free to market their games. Sports sponsorship may be banned because minors are not allowed to see gambling advertisements.