Finland's Veikkaus gaming monopoly undergoes large-scale job cuts.
The Finnish gambling giant, Veikkaus, recorded a revenue rise of 1% in the first half of this year, generating €519.3 million ($564.3 million). Yet, this development isn't cheering news for its employees, as 240 of them, almost a quarter of the workforce, are getting laid off.
Interestingly, despite the revenue increase, Veikkaus witnessed a 6.2% drop in its operating profit, reaching €310.2 million ($337.1 million) in the same period. Unlike most businesses, this state-controlled company doesn't have to pay taxes on its profits.
Announcing the layoffs in a press release, Veikkaus also revealed that 195 other employees face "significant changes." Nevertheless, it's not clear what that entails. The company's 825 employees in total are expected to undergo a major shakeup.
This restructuring is happening as Veikkaus prepares to transition into a new phase of operations. Finland is planning to open up its gaming market soon, ending Veikkaus's monopoly.
Finland's Gaming Transformation
The Finnish government is looking into updates to its gambling market, with part of it set to open in early 2026. This move will abolish Veikkaus's monopoly, shifting its role in the market.
Veikkaus will likely transfer part of its online gaming operations to the international licensed gaming market. In contrast, its lottery and physical slot machine operations are expected to continue under its direct control.
The company might also reduce the number of its gaming halls from 65 to approximately 40–50. It's even speculated that its Casino Tampere could shut down.
The objective is a business strategy allowing Veikkaus to wholly focus on its core activities. The coming changes will necessitate a review of the whole organization in terms of profitability and growth.
Aiding this endeavor are new executive-level hires recruited by Veikkaus, such as Jarkko Nordlund, Tuomo Puumala, Reija Laaksonen, and Jonas Reuter. They bring skills spanning across economics, gaming, and other relevant fields.
uncertain future of gaming
It isn't yet known exactly what shape the new online gaming model will take after 2026. However, the prevailing speculation is that several online casino and sports betting licenses might become available.
The anticipated changes have already sparked interest from global gaming juggernauts. The newly-formed Rahapeliala ry (Gambling Association) is lobbying for a licensed gaming system in the Finnish market. This group consists of seven large online gambling companies - Betsson, ComeOn Group, Entain, Flutter, Kindred Group, LeoVegas, and William Hill.
A study conducted in Finland has shown that more than 50% of iGaming activity occurs through offshore sites. These operators profit immensely without paying licenses, taxes, or implementing responsible gaming measures.
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