Veikkaus Adapts to New Finnish Gambling System with Organizational Changes
Veikkaus, a major player in the Finnish gambling industry, is gearing up for the transition to a partial multi-license system set to take effect on January 1, 2026, as outlined in the Finnish Government Programme.
This transition is both an opportunity and a challenge for the company.
Organizational Restructuring
Heli Lallukka, Executive Vice President, HR at Veikkaus, noted that this shift necessitates significant changes within the company, stating “The upcoming changes in the system are a great opportunity for Veikkaus, but they also bring many changes to us at Veikkaus. Our personnel structure will be revised, and we will be focusing on our core business, working to strengthen our knowhow there”.
The organizational restructuring is aimed at maintaining Veikkaus’ market leadership in Finland and boosting its competitive edge internationally.
Investment in Competitiveness and Personnel Changes
Veikkaus plans substantial investments in the coming years to enhance its competitiveness. While the company already boasts top-level expertise, it will also seek external know-how, particularly in the tech sector.
The reorganization will affect 825 employees, with around 185-215 job losses and 110-150 employees experiencing substantial changes in employment terms.
Division of Business Operations
The restructured Veikkaus will have three business sections. Nora Vähävirta will head the domestic business, including games of chance, slot machines, and arcades.
Jarkko Nordlund will manage the online casino and betting segment. The international business will be under the leadership of Jonas Reuter.
Constructive Dialogue and Closure of Facilities
The final figures for job losses and employment term changes, which are lower than initially estimated, resulted from constructive discussions with personnel representatives.
Additionally, Casino Tampere and 19 game arcades are slated for closure by the end of December 2023.
Our Comment on the Article
Veikkaus’ strategic adaptation to Finland’s evolving gambling system reflects a proactive approach to industry changes. The company’s focus on enhancing core competencies and seeking external expertise indicates a commitment to remaining a key player in the market.
While the organizational changes and job reductions are challenging, they are necessary steps towards aligning with the new multi-license system and maintaining competitiveness.
This period of transition, although difficult, presents Veikkaus with an opportunity to evolve and potentially emerge stronger in both domestic and international arenas. The closure of certain facilities, while regrettable, is part of this necessary restructuring to meet future market demands and opportunities.
