In a groundbreaking development, Finland has blacklisted BML Group Ltd, an affiliate of the Betsson Group. This action signifies the first occurrence of such a measure against a company licensed by the Malta Gaming Authority (MGA). It follows the loss by BML Group in a legal dispute against the Finnish National Police Council, resulting in severe repercussions, inclusive of the National Bank of Finland instructing a cessation of all fund transfers to BML.
Continuing Legal Conflict with BML
The disagreement between the BML Group and the National Police Council dates back to May 2023. It was during this period that the council leveled a record-bursting fine of €2.4 million ($2.6 million) against BML for purportedly targeting the Finnish market. The alleged infractions included the creation of Finnish market content, encompassing banner advertisements, affiliate site blog posts, podcasts, and video podcasts.
The regulator alleged that BML Group contravened Finland’s Lottery Act, which designates the state-owned Veikkaus as the country’s only permitted gaming provider. In June 2023, the Administrative Court of Helsinki decided that the Betsson Group wasn’t obliged to pay the substantial fine until the appeals process was concluded. However, the recent pronouncement by the Administrative Court of Finland seems to have rekindled the legal dispute with BML Group.
Renowned Finnish iGaming attorney, Antti Koivula, unveiled the blacklisting news via LinkedIn, highlighting the gravity of the situation. It was the court’s mandate that instigated the National Bank of Finland’s directive to all financial institutions to cease money transfers to BML Group. This move fundamentally cripples the operator’s ability to conduct business within the country and potentially affects its operations globally.
Implications of the Decision Could Be Far-reaching
In a reaction to these developments, Betsson reiterated its plan to appeal the verdict to Finland’s Supreme Administrative Court. The company emphasized BML Group’s active cooperation with the National Police Board and its compliance with the prohibition order, contesting the basis of the significant penalty. However, the newly-imposed financial restrictions pose a major hurdle in BML Group’s ongoing legal struggle.
This saga provides a spotlight on Finland’s prevailing regulatory issues as the state monopoly contends with the surge in black market operators controlling roughly 50% of the market share. The country is examining proposals to enact a licensing system, opening up the market, and redirecting more players to regulated services.
The blacklisting of BML Group may have far-reaching implications on both the firm and the broader Finnish iGaming industry. If the proposal for market decentralization proceeds, collaboration with foreign operators will be necessary, and punitive actions by the regulator could deter potential entrants. The resolution of this matter lies with Finland’s Supreme Administrative Court, and its verdict will undoubtedly shape the country’s gaming landscape.
