In a licence-based system, there will likely be dozens of gambling operators instead of the current monopoly. This means increasing competition for customers, leading to a significant rise in gambling marketing.
Gambling marketing must not be targeted at minors or vulnerable groups, but these groups are nevertheless exposed to such marketing, for example through sports sponsorship.
The amounts spent on gambling marketing and advertising will increase in the coming years. However, increased advertising will not necessarily be visible to every consumer. Paula Jääskeläinen, a doctoral researcher at the University of Helsinki, estimates that future licensed gambling operators will also balance between customer acquisition and avoiding consumer irritation.
"In Finland, by the end of 2027, there will be an estimated dozens of licensed gambling operators instead of a monopoly."
"In the initial phase, marketing for gambling operators is primarily about customer acquisition and increasing brand awareness," she states.
"However, if, for example, more than ten gambling operators start advertising to the same target groups, it could even saturate certain channels. Advertising on social media is particularly attractive for operators, but it is not impossible that a consumer could encounter advertisements from several operators during the same TV commercial break," Jääskeläinen continues.
In Sweden, Denmark and the Netherlands, the transition to a licence-based market led to an increase in gambling marketing. In the Netherlands, rapid changes caused irritation among the public, which led to stricter legislation.
Advertising is targeted at specific groups
"The gambling market has never before been opened in an era of such extensive consumer data", Jääskeläinen emphasises.
By this, she means that there is no direct comparison for how and in which channels marketing will increase. The market opened in 2021 in the Netherlands, in 2019 in Sweden and in 2012 in Denmark.
Artificial intelligence and data accumulated on consumers over many years are available from the outset for gambling operators to use in targeted marketing. According to Jääskeläinen, this combination is also highly cost-effective for foreign operators.
"Gambling advertising does not look the same to you as it does to your neighbour. It is individualised."
The most attractive target groups for gambling operators are young adult men, whose willingness to take risks is higher according to research.
In addition, the use of the internet in everyday activities, such as banking and media consumption, is increasing among the ageing population. In THL’s study Gambling in Finland 2023, the share of those aged over 60 among people who had gambled online increased the most. Older age groups may therefore be particularly exposed to increasing and more aggressive gambling marketing.
The main beneficiaries are media companies, advertising agencies, social media influencers and sports actors
Media companies and advertising agencies are key beneficiaries of the growth in gambling marketing, even though a significant share of marketing takes place on foreign social media platforms and that some content may be generated by artificial intelligence.
"In any case, there is more money available than before," Jääskeläinen estimates.
Sports actors also benefit from the increased financial flows. Cooperation agreements between gambling operators and sports organisations, federations, arenas and leagues are likely.
"I don’t believe that all foreign gambling operators are interested in building their image in Finland by taking over domestic ‘landmarks’, such as sponsoring the ice hockey league. Customer acquisition is still most effective through social media."
Pitfalls for consumers in gambling marketing:
Return-to-player percentage refers to the proportion that a gambling product pays back to the player on average over the long term. The return percentage cannot be 100, as the operator would then make a loss when fixed costs are taken into account. The purpose of a gambling operator is to win money from its customers.
Cashback means that a portion of the amount transferred by the player to the gambling operator is offered back as gaming funds. Typically, these funds cannot be transferred back to the player’s bank account unless they are first used in a gambling product where it is mathematically likely that the operator will win.
Free spins or free rounds are marketing terms commonly used by online casinos to encourage consumers to try fast paced and therefore high-risk gambling products. According to the law, they may only be offered to existing customers.
Affiliate marketing, or partnership-based marketing, is covert advertising where seemingly neutral web content, such as weather information or sports, directs users with a single click to gambling. This is prohibited by law and is particularly used by unlicensed operators. It is difficult to intervene in affiliate marketing.
Fewer than one fifth of Finns consider the new gambling system a good reform (University of Helsinki, in Finnish)
Finns are critical of the new gambling system. The aim of the reform is to reduce gambling-related harms, but 83 per cent of Finns believe that harms and problems will increase as a result of the change.