Fennica Gaming on Finland's Competitive Licensing Model Starting July 2027

Finland will end its state monopoly and launch a competitive licensing model starting in July 2027. Jonas Reuter, a member of the management team of the state operator and president of Fennica Gaming, explained on iGaming Daily what this transition will mean for the company and how it plans to compete in the new market.

Context of the Opening of the Finnish Market and Timeline

The Finnish gaming market is transitioning from a monopolistic system to a competitive licensing regime effective July 2027. The announcement anticipates the arrival of licensed private operators who will be able to offer products previously reserved for the state operator. The opening process was the focus of the conversation in the episode of iGaming Daily hosted by Fernando Noodt, in which Jonas Reuter participated.

The formal transition will apply from July 2027 and represents the most significant regulatory reconfiguration in decades for Finland. The licensing model implies that new competitors will need to obtain permits to operate in the Finnish market and comply with the requirements established by the national regulator once the regulations outlining that licensing framework are published.

Fennica Gaming: Origins and Corporate Structure

Fennica Gaming was established four years ago as the international B2B subsidiary of the Finnish state operator. The parent company that gave rise to Fennica is the result of a 2019 merger between three separate entities that until then managed sports betting, lottery, land-based and online casinos, and horse racing.

Since its launch, Fennica has focused on product development and international distribution. Reuter described the formation of the company as a strategic response to export technical capabilities and content that had previously only been offered within the operator's state perimeter.

International Expansion: Figures and Partnerships

Fennica's instant games unit has been deployed in around 20 jurisdictions since its launch. Its iCasino portfolio, developed in the same internal studio, is active in 10 markets, and the company maintains trade agreements with international operators, including a partnership with Flutter. Reuter also confirmed a planned entry into Canada, without providing an exact date beyond the expansion announcement.

These international deployments are part of Fennica's strategy to position itself as a regulated provider capable of supplying content and technology to operators with local licenses.

Positioning Against Regulated Competition

Reuter compared the regulatory change to a road traffic metaphor to explain his reading of the new competitive environment: he said that previously it was like driving on a highway limited to 80 kilometres per hour while other vehicles were going at 140; with the licensing model, the aim is to standardize and allow speeds of 110 kilometres per hour. Reuter argued that this leveling of the playing field benefits companies with a regulated history.

His central argument was that the experience of operating only in regulated environments constitutes a commercial advantage. In his words:

"We use the word no bad debts in our DNA," said Reuter, positioning the company's clean track record and Nordic values of transparency and simplicity as differentiating factors.

Reuter presented this compliance behavior and absence of problematic debts as an asset against rivals who, in his opinion, may have difficulties replicating this approach as global regulation becomes stricter.

Business Opportunities and Event Agenda

Reuter pointed out that the opening of the Finnish market represents an opportunity for Fennica to offer its portfolio to local operators and new licensees. As part of its expansion plan, the company will use trade shows and industry conferences to attract partners and clients.

Specifically, Reuter mentioned the upcoming attendance at the SBC Summit Lisbon as an occasion to meet potential collaborators and accelerate the internationalization of its products. This presence at events is part of the usual tactic of B2B providers looking for business alliances and distribution agreements.

Implications for Operators and Regulators

For operators seeking to compete in Finland starting July 2027, the entry of regulated providers like Fennica offers proven solutions in external markets and the possibility to quickly align catalogues and platforms with local requirements. The company, due to its regulated history, aims to facilitate the incorporation of iCasino and instant games products to operators that require strict compliance from day one.

The Finnish regulator will be the authority responsible for designing licensing requirements and overseeing their application once the framework comes into effect. Public discourse and technical negotiations between the regulator and market players will determine operational timelines and compliance criteria following the July 2027 date.

What Remains to be Confirmed

The company has detailed its history, international presence, and business intentions, but the fine print of the licensing regime remains to be confirmed: the exact criteria for granting permits, the responsible gaming obligations required by the regulator, and the specific timelines for the adaptation of new licensees.

Fennica starts from a position of a regulated provider with products in 20 jurisdictions and 10 iCasino markets, partnerships with global operators like Flutter, and an announced entry in Canada. The company will present itself at sectorial events to seek partners when the Finnish market opens in July 2027.