Finnish Gambling System Reform Is Underway – Part IV – Which Kind Of Marketing Is Allowed?

In our blog series regarding the Finnish gambling system reform, we have previously published three blogs (Part I, Part II, and Part III), where we reported that the Finnish Government is planning to reform the gambling system and open it to competition under a licence-based model from January 2026. In our previous blog post, we focused on how to apply for a licence. In this post, we turn our attention to the content of the Government Bill concerning the marketing provisions.

The proposed Gambling Act would include provisions on

• marketing,
• methods and practices considered prohibited in marketing,
• information to be provided in connection with marketing,
• sponsorship, and
• direct marketing bans.

Only marketing by licence holders who lawfully organise gambling in mainland Finland, and marketing of gambling games that are lawfully organised, would be permitted.

Permitted Marketing

Marketing should be carried out or produced by the licence holders themselves. If the dissemination of marketing is carried out by a party other than the licence holder, there should always be a contractual relationship between the licence holder and the other party. According to the proposed Gambling Act, marketing should be moderate in its quantity, quality, visibility, and frequency. If the licence holder's marketing is, for example, limited to a specific event, within a restricted area, and for a limited time, the marketing can almost always be considered moderate. In contrast, as stated in the Government Bill, if the licence holder were to fill all TV advertising slots with their own advertisements, such marketing would clearly be in conflict with the moderation requirement set out in the proposed Act. However, in assessing the moderation of marketing, the overall assessment of each situation is likely to become central.

The proposed Gambling Act would allow the licence holder to carry out marketing through a variety of different marketing channels. Marketing would be permitted

1. on the licence holder's own website and social media accounts, provided that the marketing is not interactive with the consumer,
2. on television and radio broadcasting as defined in the Act on Electronic Communications Services,
3. at sports events and other public events during the duration of the event,
4. in print media and in electronic publications corresponding to print media, and
5. in outdoor advertising, provided that such advertising is not placed near early childhood education facilities, pre-primary or basic education institutions, secondary education institutions, pharmacies, healthcare units, or substance abuse treatment units.

According to the Government Bill, marketing must also comply with the marketing provisions of the Consumer Protection Act. Therefore, marketing shall not be contrary to good practice or use practices that are unfair to consumers, and it must be clearly identifiable as commercial communication. The provisions of the Unfair Business Practice Act could also be applicable to gambling-related marketing.

With regard to the moderation of marketing, guidance can be sought from Sweden, where gambling legislation requires marketing to be "moderate" (in Swedish: "måttfullhet"). In case law, marketing has been considered contrary to this provision, for example, when advertisements encourage immediate play or suggest that a player's skills can influence the outcome of the game. The statement "winnings in your account in five minutes" was also found to violate said provision. Furthermore, advertisements that did not clearly state the limitations of bonuses and free spins have also been considered to breach the moderation requirement under case law.

The Constitutional Law Committee has also addressed the provisions concerning permitted marketing in its statement on the Government Bill. In its statement, the Committee considered the marketing provisions to be too open for interpretation, particularly in relation to the moderation requirement. Therefore, the provisions on permitted marketing may still be further specified during the continued legislative drafting process.

Prohibited Marketing Methods and Practices

The proposed Gambling Act would largely correspond to the current legislation regarding restrictions on the methods and practices of permitted marketing. As in the current legislation, the proposed Gambling Act would include a list of marketing methods and practices that are considered to promote gambling-related harm and which, therefore, would be prohibited.

Prohibited marketing methods and practices include

1. glorifying gambling by portraying it as desirable, excessively positive, or by inciting gambling,
2. depicting frequent gambling positively, or portraying abstaining from gambling or moderate gambling negatively,
3. normalising gambling by presenting it as part of everyday life, equating it with daily routines, purchasing food or clothing, or other typical consumer behaviour, or by portraying it as a necessary or harmless pastime,
4. presenting gambling as a solution to financial problems, a means to improve one's financial situation, a way to cope with life challenges, or as an alternative to employment,
5. portraying gambling as a means to achieve social success or acceptance,
6. giving misleading or unrealistic representations of winning possibilities, emphasising the chances of large winnings, or portraying gambling as financially, socially, or health-wise risk-free,
7. exploiting ignorance, inexperience, or gullibility related to gambling,
8. offering gambling for free, at a discounted price, through bundled offers, or providing gambling credits in ways other than as customer bonus credits as defined in Section 26,
9. offering another gambling game for purchase or selection during the purchase, selection, or claiming of winnings of a gambling game or other product,
10. offering other random benefits during the purchase of a gambling game, aside from the chance to win included in the game itself,
11. promoting credit or similar financial instruments in connection with marketing
12. encouraging gambling as a way to fund charitable activities or government expenses,
13. offering other goods for free or at a discount in connection with gambling marketing, except as defined in Section 26,
14. using consumer web traffic identifiers in gambling marketing, while simultaneously providing direct or indirect guidance to a gambling website, and
15. using any other method similar to those described in points 1-14.

The proposed Gambling Act also explicitly prohibits affiliate marketing based on directing online traffic to gambling websites. In the Government Bill, the prohibition of affiliate marketing has been justified by the fact that its use as a marketing method could lead to abuses regarding the information to be provided in connection with marketing and blur the distinction between licence holders and illegal actors.

As in the current legislation, the protection of minors from gambling-related harm is a key element of the proposed Gambling Act. The prohibition on marketing targeted at minors includes a ban on directing any form of marketing to minors through any channel, at events, or in content aimed at minors. Marketing must also not feature minors. As a new addition compared to the current legislation, the proposed Gambling Act includes a provision prohibiting the marketing at sports and other public events intended for minors. Publications, events, and advertisements whose target audience consists mainly of children and young people, or whose primary audience is children and young people, would be considered to be aimed at minors.

The Government Bill states that it is not possible to exhaustively regulate all prohibited marketing methods and practices due to the difficulty of identifying every form of marketing which could be considered to promote gambling-related harm. Therefore, as indicated earlier in paragraph 15 of the list of prohibited marketing methods and practices, marketing would also be prohibited when it is carried out in a manner comparable to the explicitly prohibited marketing methods and practices. However, in its statement on the Government Bill, the Constitutional Law Committee has stated that the general provision referred to in paragraph 15 is so open-ended that, in order to ensure the precision and clarity required for restrictions on fundamental rights, the provision should be removed. Accordingly, the provisions may therefore still be further specified during the continued legislative drafting process.

Information to Be Provided in Connection with Marketing

As in the current legislation, the proposed Gambling Act would include an obligation to incorporate information in marketing about the age limit for gambling and about tools for managing problems related to gambling. Additionally, marketing should include information about the granted licence and the supervisory authority. Marketing must also clearly and visibly display, for a sufficient duration and in a sufficiently large format, the identifier of the licence granted to the licence holder and the mark of the authority that issued the licence. Information about the licence and the supervisory authority should be included in all marketing, except for radio advertisements, where such information would not be necessary.

Sponsorship

The provisions on sponsorship introduced in the Government Bill represent a new addition to the gambling related marketing. The proposed Gambling Act would allow, for example, individual athletes, sports federations, and clubs to engage in commercial cooperation with gambling companies, as well as the main sponsorship of clubs and sports arenas. Examples of sponsorship include the sponsor being featured on the clothing of the sponsored party, as well as on their social media and websites. If the sponsor acts as the main sponsor of the sports arena, the arena could be named after the sponsor, and the sponsor's name and logo could be displayed within the arena's premises.

It must also be ensured that sponsorship is directed exclusively at products or services intended for adult use. The purpose of this restriction is to clarify the prohibition on marketing targeted at minors. It must also be taken into account that, for example, the use of logos and names required by sponsorship agreements with professional teams on the uniforms of junior teams from the same club is prohibited. When entering into sponsorship agreements, the licence holder must ensure that its logos or the names of its products or services appear only on products and services used by or intended for adults.

Borderline questions may arise in relation to the provisions on sponsorship and the prohibition of marketing targeted at minors. Although the proposed Gambling Act allows for a licence holder to act as the main sponsor of a sports arena – whereby the arena could be named after the sponsor and the sponsor's name, and the logo could be displayed within the sports arena – it must be taken into account that it is not uncommon for such sports arenas to host events specifically aimed at minors. Hence, sports arenas whose events are mainly aimed at minors are presumably unable to obtain a licence holder as a main sponsor or agree on marketing arrangements whereby the logos of a licence holder would be largely visible.

Bans on Direct Marketing

All direct marketing must be based on the explicit consent of the individual. Direct marketing refers to marketing communication that is addressed directly to the recipient, for example by telephone, text message, email, post, or through private messages sent via social media. According to the Government Bill, personalised marketing is prohibited without the individual's explicit consent. This consent must be explicit and cannot, for example, be hidden within other terms and conditions unrelated to the direct marketing, nor can it be connected with the acceptance of such terms. In addition, if an individual has given explicit consent for direct marketing, the process for withdrawing such consent must be simple and easily accessible. Furthermore, it is to be noted that if an individual gives explicit consent to direct marketing, the provisions on direct marketing under the Act on Electronic Communications Services must also be taken into account.

Prohibition of Marketing and Penalty Payments

The supervisory authority may prohibit the marketing of gambling if it violates the proposed Gambling Act's provisions concerning

1. permitted marketing,
2. prohibited marketing methods and practices,
3. the prohibition of targeting marketing at minors and vulnerable persons,
4. bans on direct marketing,
5. information to be provided in connection with marketing, or
6. sponsorship.

The prohibition may be imposed for a maximum of 12 months. If the conduct of marketing has not been rectified, the supervisory authority may extend the duration of the prohibition by a maximum of 12 months. At the request of the supervisory authority, the Market Court may impose a conditional fine to reinforce the prohibition.

According to the proposed Gambling Act, a penalty payment may be imposed by the Market Court upon the proposal of the supervisory authority on the licence holder for non-compliance with the proposed Act's marketing provisions regarding bans on direct marketing, information to be provided in connection with marketing, and by violating the provisions of permitted marketing. The amount of the penalty payment would be based on an overall assessment. When determining the penalty, factors such as the nature, extent, reprehensibility, and duration of the violation, the benefit gained from the violation, the actions taken by the subject of the penalty to mitigate or remedy the harm, and any previous violations by the subject of the penalty are to be taken into consideration. The penalty payment imposed on a legal entity may not exceed four per cent of its turnover for the year preceding the end of the violation and shall not exceed five million euros. However, the penalty payment must be at least EUR 10,000.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.