Betsson Subsidiary the First Gaming Operator Blacklisted by Finland’s NPB

Article by : Erik Gibbs Mar 5, 2024

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On February 29, the NPB (National Police Board) in Finland unveiled its blacklist, marking the first instance of an operator facing such measures in the country. The list exclusively featured Betsson, its subsidiary BML Group and 13 of the operator’s brands.

This decision comes on the heels of Betsson’s recent legal defeat against the NPB earlier in the month. Consequently, banks, payment service providers and virtual currency providers are now mandated to block all money transfers from Finland to BML.

In May of the preceding year, the BML Group faced legal consequences for its marketing and advertising campaigns, which were found to target Finnish players in contravention of the Finnish Lotteries Act.

Following this verdict, the court imposed a €2.4 million (£2.1 million/$2.6 million) fine on the BML Group and instituted a ban on marketing its gambling services.

The National Police Board (NPB) intervened after determining that the company had violated the Finnish Lotteries Act by unlawfully targeting players in Finland over an extensive period. Notably, Finland’s gambling monopoly, Veikkaus, retains exclusive rights to operate and market its services within the country.

At the onset of 2023, Finland implemented payment blocks targeting gambling to combat a significant black market, which constitutes up to half of all gambling activities in the country.

This isn’t the first time Betsson has encountered challenges in a monopoly market; Norway presented a similar situation in 2021. Furthermore, the company faced obstacles entering the regulated Netherlands iGaming market during the same year.

In 2021, Betsson joined several other prominent brands in withdrawing from the Dutch market due to a last-minute amendment to the Remote Gambling Act.

This change stipulated that operators providing services to Dutch players, even without specifically targeting the market, would be ineligible for licenses.

Initially pursuing a license after a mandatory cooling-off period, Betsson later withdrew its application.

The inclusion of Betsson in the blacklist aligns with Finland’s government move to end Veikkaus’ existing monopoly. The government plans to transition to an open licensing model by 2026, aiming to mitigate financial and social harms associated with gambling.

Following the announcement of the impending end to the monopoly, Veikkaus has partnered with OpenBet to update its fixed-odds betting system. These enhancements are expected to be implemented at sales points and on Veikkaus.fi by the end of 2024.

In response to these changes, Veikkaus is also restructuring its operations by reducing its workforce by around 25%.

This involves dividing operations into three business units, resulting in job losses for approximately 185 to 215 employees, with another 110 to 150 workers undergoing material changes to their employment.