Finnish Operator Veikkaus Plans Restructuring Ahead of Multi-Licence Market Launch
As Finland prepares for the shift from a gambling monopoly to a multi-licence market by 2027, Veikkaus has announced further restructuring plans. State-owned operator intends to enter contract negotiations with up to 620 employees, which could result in more redundancies as part of its adjustment to the new market environment.
Impacts of Finland’s Market Transformation
The Finnish government’s decision to end Veikkaus’ monopoly, set to take effect “no later than 2026,” has triggered significant operational changes for the company. Veikkaus, which previously held exclusive control over both land-based and online gambling, will be divided into distinct entities, including its land-based slots and lottery arm, B2B subsidiary Fennica Gaming, and a licensed online gaming business. This restructuring is part of its preparation for the multi-licence market.
While Veikkaus has supported the government’s decision, it has repeatedly warned of the potential impact on jobs. As part of its transition, the company is negotiating with up to 620 employees, with the possibility of redundancies, restructuring, and role re-evaluations. Between one and four positions could be terminated, while up to 37 roles could be significantly altered.
Restructuring Focused on Core Business
Veikkaus has framed this restructuring as a necessary step to remain competitive within Finland’s new gambling framework. According to Heli Lallukka, Veikkaus’ executive vice-president of HR, the goal is to streamline the operator’s focus on core activities. “The planned measures would enable us to deal with the changes in Veikkaus’ mission and operating environment, as well as with the changes in the overall gambling sector,” Lallukka explained.
This shift will particularly affect technology and development teams, as Veikkaus moves toward a product-led structure. Additionally, Lallukka hinted at the company’s plans for further international expansion, leveraging its B2B arm, Fennica Gaming, which has already secured supply agreements globally. She emphasized that this restructuring marks a “turning point” for the business, creating opportunities for reform and growth.
Financial Decline in H1 2024
The restructuring announcement follows Veikkaus’ financial results for the first half of 2024, which revealed a substantial drop in both revenue and profit. Gross gaming revenue (GGR) fell by 21%, while sales revenue plummeted by 68%. Operating profit declined by 20.4% to €246.9 million, and total group profit dropped 19.1% to €252.3 million.
Despite these challenges, Veikkaus remains committed to its long-term vision. “We want to turn Veikkaus into a company that is a major operator both in Finland and internationally,” Lallukka stated, adding that the company seeks to become a “shared source of pride” for all Finns as it navigates this period of significant transformation.
