Finland’s gaming landscape is on the brink of a significant transformation, with Veikkaus, the Finnish national betting agency, proactively entering into a strategic alliance with gaming technology company OpenBet. This collaboration materializes well in advance of the anticipated dissolution of Veikkaus’ monopoly status slated for 2026, marking a proactive shift in strategy for the government-owned entity.
June of this year brought the Finnish government’s momentous decision to dismantle the longstanding monopoly system for gambling, ushering in a new era of regulation and competition. As Veikkaus readies itself for this radical overhaul, it has elected to augment its Pitkäveto and Live Bet offerings and introduce a slew of new sports into its build-a-bet feature, all underpinned by technology and expertise from OpenBet. OpenBet secured its role as the technological partner for Veikkaus following an extensive and competitive public tender process.
Customers can expect to experience these enhancements both at physical sales points and on the company’s digital platform, Veikkaus.fi, towards the tail end of 2024. According to Juha-Matti Mäkilä, Veikkaus’ vice president of betting operations, this partnership is integral to the company’s ambition to retain its supremacy in the Finnish betting market. Mäkilä emphasized the objective is to deliver the ultimate customer experience, infused with top-notch features paralleling those found in the international betting arena.
The drive to introduce diversity and tailor their offerings to the Finnish patron’s preferences lies at the heart of these reforms. However, this pivot towards modernization is not without its ramifications. Veikkaus’ restructuring includes not merely the introduction of innovative services but also a downsizing of its workforce. An estimated 185-215 of the current 825 employees will be confronted with job losses, while another 110-150 will experience significant alterations to their terms of employment.
This reorganization will witness Veikkaus fragment into three distinct operational divisions. Additionally, Veikkaus disclosed the impending closure of Casino Tampere scheduled for December 9, impacting 80 employees and occurring a mere two years post its highly publicized launch.
The planned eradication of the monopoly system aims to establish a licensing model encompassing both online casinos and sports betting. The Finnish government has declared the principal goal of this transition is the mitigation of gambling-related harm, acknowledging the shortcomings of the current system.
Support for this overhaul had been percolating even prior to its formal announcement. A governmental study in April concluded that maintaining the monopoly system was suboptimal. Moreover, the plans received accolades from the European Betting and Gaming Association (EGBA) in October, who hailed the decision as a pivotal moment for Finland.
Echoing this sentiment is the supportive stance from Veikkaus itself, with CEO Olli Sarekoski underscoring the importance of such a move following the announcement of the H1 results in August. He pointed out that the licensing system is more conducive to channeling gambling into regulated and responsible offerings.
The Finnish government has laid out a roadmap for the transition towards the new licensing system, poised to include new legislative proposals covering critical elements such as licensing fees, taxation, and additional regulatory measures.
In summary, Veikkaus is bracing for the end of its monopoly with an ambitious collaboration with OpenBet. By expanding and enhancing their betting products, they aim to continue to captivate Finnish customers amidst a forthcoming competitive market environment. While restructuring brings its share of difficult changes, including job losses, the broader goal remains the fostering of a more responsible and regulated gambling sector in Finland. As the countdown to 2026 progresses, all eyes will be on how these strategies unfold and set a new standard for gaming in Finland.
