Veikkaus, the Finnish national betting agency, continued to experience a revenue downturn, reporting a 3.0% decrease in 2022 compared to the preceding year. This continued the trend of declining revenue for the former gambling monopoly, which faces a transformative future as significant regulatory shifts engulf the Finnish gambling landscape.
In a landmark move, the Finnish government, established in June, set 2026 as the deadline to dismantle the existing gambling monopoly. This monumental shift will give way to a new licensing framework that will divide Veikkaus into separate corporate entities within the same organization. This major reorganization is poised to reshape the Finnish gambling scene historically dominated by Veikkaus’ monopoly.
The year 2023 was punctuated by Veikkaus’ September announcement, foreshadowing the inevitability of workforce reductions as a direct result of the monopoly’s dissolution. Confirming the looming inevitability, Veikkaus later announced in November that between 185 to 215 employees would be laid off. Adding to the sweeping changes, Veikkaus’ Casino Tampere closed its doors permanently in December, having been operational for less than two years.
As it presented its financial outcomes for 2023, Veikkaus acknowledged the significant impact of the identification protocols introduced in May. The system mandated all players to register for ticket-based games, a move that transitioned into the compulsory identification for all Veikkaus games at the start of 2024, encompassing even physical scratch cards.
Susanna Saikkonen, Veikkaus’ Vice President for Sustainability, underscored the significance of the identification mandate, asserting that such measures have established Veikkaus as a global frontrunner in responsible gambling practices. Saikkonen emphasized that the data collected throughout the ID verification process granted Veikkaus a more nuanced understanding of customer behavior, enhancing the agency’s ability to recognize signs of problematic gambling tendencies. By leveraging this treasure trove of data, the company was able to contact over 3,700 players identified as potentially at risk of gambling harm and integrate an automated care and communications framework specifically designed for customers at the highest risk level.
Despite commendable advances in responsible gambling, Veikkaus Oy, the agency’s parent company, witnessed its profit slide to €585m, marking a steep 14.0% drop year-on-year. The lapse in operational profit was even more pronounced, plummeting to €580.2m, a 14.7% decrease. Compounded by a hefty lottery tax of €51.7m—a 42.4% increase from 2022—Veikkaus’ financial health seemed strained.
Sales revenue also succumbed to a downward trend, thinning by 3.5% to €1.03bn, covering both Gross Gaming Revenue (GGR) and revenue from other business operations. Operational expenses swelled across the board: material and service costs hit €130.3m, employee-related benefits rose to €98.2m (up by 14.8%), and other business expenses surged 24.9% yearly to €127.2m. Depreciation and impairment followed suit, climbing 15.4% to €55.4m.
Veikkaus’ operating profit, aided slightly by €5.3m in financial income, was nonetheless dented by finance costs amounting to €513,834. Consequently, the year’s total profit settled at €578.4m, bearing in mind the absence of tax for the year. The twin declines in group profit and operating profit were attributed to factors that included an upsurge in lottery taxes, investment costs, and singular cost entries borne from restructuring negotiations. In comparing profits year on year, there was a 13.7% fall, with operating profit dwindling by 14.5%.
Notably, Veikkaus observed in 2023 that 90.6% of its domestic gambling operations required player authentication, an 11.1% uptick from the previous year. The monopoly touted an expansive base of about 2.5 million registered customers by the year’s end—an 8.0% boost signifying an increase of 180,000 customers.
Also of note was the shift in how customers engaged with Veikkaus. For the first time, over half (54.8%) of customer gambling transactions emerged from digital platforms, a 4.5% year-on-year increase. Market estimations from H2 Gambling Capital suggested that Veikkaus commanded about 54% of the Finnish digital gambling market share by the end of 2023.
Despite the company’s challenges, it had bright spots. Eurojackpot and Lotto remained crowd favorites, with Eurojackpot’s GGR holding steady at €151.1m and Lotto’s taking a slight hit, down by 8.9% to €136m. Regina Sippel, Veikkaus’ Chief Financial Officer, commended the digital channel’s robust performance, affirming the company’s satisfaction with the year’s returns overall, particularly the triumph within the online gaming sector. Veikkaus, Sippel expressed, is set to channel more resources into enhancing its digital offerings, a beacon of hope amidst an otherwise turbulent period for the traditional gaming giant.
