Betsson has made a strategic move amidst regulatory challenges, transferring its brands to a new holding company entity. This maneuver comes in response to Finland’s National Police Board (NPB) decision to include Betsson’s subsidiary BML Group Ltd on its payment blocking list, compelling the company to take decisive action to continue its operations.
Betsson Hands Reins to Rizk Nordic Amid Regulatory Pressure
Effective immediately, Betsson’s gaming services for customers residing in the European Union, excluding Sweden and Ireland, will now be managed by Rizk Nordic Limited, a Malta Gaming Authority (MGA)-licensed entity.
This transition, visible on Betsson’s official website, marks a significant shift in the operator’s licensing structure, with legal experts suggesting it is a calculated step to navigate Finland’s stringent regulatory framework.
Previously, Betsson listed BML Group as its licensee, but the switch to Rizk Nordic Limited signifies a strategic response to Finland’s payment blocking order issued on February 29. Under this order, the NPB mandated banks, payment service providers, and crypto entities to block all payments from Finland to blacklisted gambling businesses, including Betsson and 13 other brands.
The legal intricacies of Finland’s blocking law focus on the holding licensee rather than individual brands, allowing operators to potentially bypass payment restrictions. Betsson’s decision to appeal the case to Finland’s Supreme Court underscores its commitment to contesting the allegations leveled against it.
Betsson Maintains Compliance Amidst Regulatory Scrutiny, Future Licensing Explored
Betsson spokespersons maintain the company’s compliance with regulatory directives and refute accusations of specifically targeting the Finnish market. The complexity of navigating Finland’s regulatory landscape prompts industry experts to speculate on potential consequences for Betsson’s future licensing prospects in the country.
Antti Koivula, a Finnish market expert, emphasized on X (formerly Twitter) the broader implications of Betsson’s actions, suggesting that the ongoing dispute could influence its eligibility for licensing once Finland transitions to a new gambling regulatory system by 2026. Previous instances in other markets, like the Netherlands, indicate that regulatory compliance history can significantly impact licensing decisions.
Veikkaus, the Finnish state-owned gambling operator, announced in November significant restructuring measures, including job cuts and operational changes, in preparation for the country’s transition from a gambling monopoly to a partial multi-license system by 2026.
Additionally, Koivula highlighted the criminal liabilities associated with illegal gambling marketing under Finland’s Criminal Code, signaling potential legal repercussions for individuals involved in non-compliant activities within gambling companies.
As Betsson navigates this regulatory quagmire, its strategic decisions will not only shape its immediate operational landscape but also impact its long-term standing within the evolving regulatory frameworks of international gambling markets.