11.03.2024

by Kajetan Sawicz

Last update: 11.03.2024 10:07

Veikkaus Embraces Digital Success Amidst ID Verification Challenges

Veikkaus, Finland’s state-run gambling monopoly, has reported a notable digital growth in its online casino business for 2023, despite a 3.6% decrease in gross gaming revenue following the introduction of mandatory ID checks in land-based venues.

Veikkaus Adapts to New Finnish Gambling System with Organizational Changes

Navigating New Regulations: Veikkaus’ Strategic Adaptation

Finnish gambling monopoly Veikkaus has acknowledged a significant upswing in its online casino sector for the year 2023, despite facing a downturn in gross gaming revenue (GGR) by 3.6% due to the enforcement of land-based ID checks initiated in May last year. This move, aimed at bolstering responsible gaming, had anticipated impacts on the company’s land-based operations.

The fiscal year ended with Veikkaus achieving a GGR of €1.03bn. However, there was a noticeable dip in the operating profit of Veikkaus Oy, which fell by 14.7% to €580.2m. The overall group profit also experienced a decline of 13.7%, settling at €578.5m, with operating profits down by 14.5% to €573.6m. Factors contributing to these figures included an increased lottery tax, one-off costs from cooperation negotiations, and substantial investments aimed at future-proofing the group.

Digital Domination: The Online Casino Success Story

A significant highlight for Veikkaus was the digital channel, which accounted for 54.8% of the GGR from customer-oriented activities, marking an increase of 4.5 percentage points. The standout performer was the online casino segment, which saw a revenue increase of 6.1% to €184m. Regina Sippel, Veikkaus CFO, expressed satisfaction with the year’s results, particularly praising the success of online games and indicating continued investment in digital channel development.

Among the most popular games, Eurojackpot maintained its revenue at €151.1m, while Lotto experienced a decrease of 8.9%, bringing its GGR to €136.5m.

Veikkaus also shed light on its subsidiary, Fennica Gaming, which is dedicated to extending the operator’s content to new markets. By the year’s end, Finnish online lotteries were accessible in several regions, including the Nordics, Baltic states, Central Europe, and America. Timo Kiiskinen, CEO of Fennica Gaming, highlighted the satisfaction of corporate clients with the quality and reliability of the games and services, anticipating continued expansion in 2024.

Our Comment on the Article

Veikkaus’ strategic focus on enhancing its digital offerings amidst regulatory changes showcases the dynamic adaptability required in the modern gambling industry. The digital channel’s success, particularly in the online casino segment, highlights the shifting consumer preferences towards online gaming platforms. Veikkaus’ commitment to responsible gambling, through the implementation of ID checks, despite its impact on land-based revenue, underlines the importance of ethical practices in the industry. As Veikkaus continues to navigate through legislative and market challenges, its emphasis on digital innovation and international expansion through Fennica Gaming positions it well for future growth and sustainability in the ever-evolving gambling landscape.

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