Betsson transfers brands to circumvent Finnish payment blocking order
In response to Finlands National Police Board (NPB) placing Betsson on its payment blocking list, the online gambling company has transferred its brands to a new holding company. The NPBs payment blocking order, which came into effect in early 2023, requires all banks, payment service providers, and crypto entities to block all payments from Finland to blacklisted businesses.
Betssons gaming services for customers in the European Union, excluding Sweden and Ireland, are now operated by Rizk Nordic Limited, a Malta Gaming Authority (MGA)-licensed entity. Previously, the licensee was listed as BML Group. This switch in holding company is designed to circumvent the Finnish polices payment blocking order.
Finlands blocking law applies specifically to the holding licensee, not the individual brands. This means that the operator can out-manoeuvre the payment blocking order. Betsson has stated that BML Group Ltd is fully compliant with the NPBs prohibition order and does not target Finland with its customer offering.
Betsson plans to appeal the ruling by the Administrative Court of Finland and the blacklisting by the NPD to the Supreme Court in Finland. The company also welcomes the Finnish governments plans to introduce a competitive licensing system. This system could increase player protection and market efficiency by introducing fair competition among operators, improving the player experience, and better meeting player demands and preferences in the Finnish market.
The Finnish payment blocking system has not been tested before the Betsson case. It will be interesting to see how the NPB, as the supervisory authority, will react to such an action clearly contrary to the spirit of the law. This potential cat-and-mouse game may have longer-term consequences for Betsson, as their activities could affect their chances of obtaining a license in Finland once the gambling system change comes into effect,
Finland is set to phase out its monopoly system with the introduction of a licensing model by 2026. This move is part of a broader trend in Finlands gambling regulation, which aims to prevent gambling-related harm by influencing the availability and accessibility of gambling services.
Why Betsson was blacklisted by Finlands National Police Board
This marks the first time an iGaming business was added to the NPBs publicly available blacklist. The blacklisting mandates all banks, payment service providers, and cryptocurrency businesses to block payments from Finland to these blacklisted businesses, which included Betsson and its 14 owned brands. This action followed Betssons loss in a Finnish court against the NPB for allegedly violating the countrys Lottery Act by targeting the Finnish market. Finland is shifting towards a licensing model for its gambling industry, with the new Social Democratic Party-led coalition government committed to introducing this model by 2026. Betssons blacklisting could potentially complicate its efforts to receive a licence under the new regulations.
