Finland's Crypto Ban: A Symptom of a Bigger Problem in iGaming Regulation

Nordic Law Partner Jon Hautamäki argues that Finland's crypto ban is not the real risk to the country's iGaming market. He claims that prohibiting affiliate marketing, game variety, and payment options has a greater impact on channelization rates than cryptocurrency payments.

Channelization refers to directing players towards licensed operators instead of unlicensed ones. The Finnish government aims to achieve 80-90% channelization rates through its new Gambling Act, but Hautamäki believes the current framework may not be effective in achieving this goal.

The article points out that Finland has layered four restrictions on licensed operators: a prohibition on affiliate marketing, restrictions on search engine and social media marketing, a ban on bonuses in customer acquisition, and a blanket ban on gambling with crypto-assets. These measures may actually push players towards the offshore market they are meant to be drawn away from.

Hautamäki notes that Sweden's channelization rates rose from 71% to 93% after licensing, while Danish online channelization increased by nearly 30 percentage points. He argues that Finland's framework should allow licensed operators to use acquisition tools like affiliates and bonuses to attract players, rather than restricting them.

The article concludes that crypto payments are not the primary issue in Finland's iGaming market, but rather a symptom of a larger problem with the framework. Hautamäki expects the crypto ban and bonus restrictions to be reopened once the market generates channelization data.