Veikkaus Faces Declining Sales Amid Market Transition in Finland

Revenue Decline Continues for Veikkaus

Veikkaus, Finland’s state-owned gambling monopoly, reported another year of declining sales in 2024, reflecting an ongoing downward trend. The company’s total sales revenue dropped by 7.3% year-on-year to €956.2 million, while operating profit fell by 19.6% to €466.8 million. The decline was attributed to increased investments and a sharp rise in the country’s lottery tax from 5% to 12%, resulting in a total tax payment of €114.2 million.

New regulations affecting ticket-based and scratchcard games also impacted Veikkaus’ gross gaming revenue. Meanwhile, the company reported that 60% of its revenue now comes from digital operations, with the remaining 39.8% generated from physical points of sale.

Despite the overall financial decline, Veikkaus expanded its registered customer base, adding 80,000 new users in 2024 to reach a total of 2.6 million.

Competitive Pressure and Market Challenges

Veikkaus has been facing increased competition in Finland’s gambling market, particularly from offshore operators. Analysts suggest that the company’s market share in non-lottery categories has been shrinking over time.

“In 2021, it was estimated that Veikkaus held roughly a 30% market share in non-lottery gambling, but since then, we’ve seen a significant decline,” said Finnish lawyer Antti Koivula.

The expansion of grey-market operators in Finland has made it increasingly difficult for Veikkaus to maintain customer loyalty. Some estimates suggest that Finnish players spent approximately €550 million on unlicensed gambling in 2024, though other sources indicate this figure could be as high as €900 million.

Growth in International Operations

While Veikkaus’ domestic business continues to struggle, its B2B subsidiary, Fennica Gaming, has been expanding globally. The company entered three new continents in 2024, providing online lottery and slot operations in key markets such as the United States, the United Kingdom, France, and Sweden.

Fennica Gaming generated €3 million in sales revenue last year, marking a 181% increase from the previous year. However, the business unit remains unprofitable, posting an €8.6 million loss in 2024, a 14% increase from the previous year. By the end of 2024, Fennica Gaming had signed agreements with 14 corporate clients.

Regulatory Changes Expected in 2026

Despite its financial struggles, Veikkaus remains optimistic about the future, citing Finland’s upcoming gambling market reform as a key opportunity. The country is set to open its online gambling sector to private competition in 2026 or early 2027.

Under the new system, Veikkaus will receive a license to operate a separate business arm that will compete with new private entrants. However, the company will maintain its exclusive rights to retail slot machines and lottery operations.

“The reform of the gambling system is a great opportunity for Veikkaus, and we have been preparing for the future for a long time. In 2024, we followed our strategy by investing in business development and international growth. Our goal is to continuously evolve, driven by our new mission: ‘We passionately drive better gaming’”, said Veikkaus CFO Regina Sippel.

As part of its restructuring efforts, Veikkaus has warned that up to 620 jobs could be at risk due to the upcoming changes in the Finnish gambling market. Meanwhile, the company continues to push for stronger market regulation to curb offshore competition.

Industry observers remain skeptical about Veikkaus’ ability to navigate the transition successfully.

“It’s interesting to see Fennica Gaming’s early progress. The company’s turnover rose to €3 million last year, but losses remain high at around €8.5 million. Making significant profits in the B2B sector is challenging, and it will take time to see if Veikkaus can turn things around”, said Jari Vähänen, a partner at Finnish Gambling Consultants and former Veikkaus executive.