Changes Ahead of Finland’s Veikkaus as Its Monopoly Nears End

Article by : Milena Petrovska Nov 17, 2023

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Finland’s online gambling market is shifting, and starting from January 2026, Veikkaus’ monopoly will end. The state-owned operator responded to the changes ahead with some strategic restructuring, including operational changes and layoffs.

Per the Veikkaus latest statements, about 25% of the operator’s workforce will feel the impact of the restructuring. Out of 825 employees, between 185 and 215 will be let go, while from 110 to 150 employees would have material changes.

According to the company’s reports, these announced layoffs are milder than initially expected. Veikkaus began its restructuring talks in September when it estimated letting go of as many as 240 employees. In addition, 195 positions were forecasted to experience material changes.

Those were the initial estimates released by the Executive Vice President of Human Resources, Heli Lallukka. However, after concluding consultations with staff, the figures were improved. As Lallukka put it, “constructive dialogue with personnel representatives” helped the figures to go down.

Operations Divided Into Three Units

In addition to the layoffs and restructuring, Veikkaus announced operational changes. This step should prepare the operator for its future operations when new players join the Finnish market.

First, the company announced splitting into three units:

• Domestic games of chance, slot machines, and arcades. Nora Vähävirta will lead this sector.
• Domestic online casino and betting operations. Jarkko Nordlund will lead this sector.
• International business. Jonas Reuter, who joined the company recently after leaving his IGT position, will lead this sector.

It’s still not clear when the changes will go into effect. Considering that everyone affected will have time to review the positions and transfers offered to them. However, the company expressed plans to conclude everything by the end of this year.

Another important change is the closing of Casino Tampere. A statement on the casino’s website informed visitors that after 9th December 2023, Tempere’s doors will close. Per the statement, the decision came after the “change negotiations” were finalized.

Veikkaus’s organizational structure changes should enable the company to become a market leader in Finland. It also mentioned how the brand aims to become an “internationally competitive, growing gambling company”.

Lallukka sent similar sentiments in her statements. She highlighted how the company would have to focus on external expertise as they would “need know-how from outside the company”. Additionally, Lallukka expressed plans to invest in enhancing the company’s competitiveness.

Besides Casino Tampere, 19 game arcades in various locations, including Helsinki, Turku, and Espoo, will close down on 22nd December 2023.

Significant Transition Ahead of the Finnish Gambling Market

Back in April 2023, a study focused on Finland’s monopoly recommended that the country had to make changes. Per the study’s report, about 50% of the gambling activities of Finnish consumers happened on unlicensed websites. The loss from this situation was estimated to be between €500 million and €550 million per year.

When the report went public, it was welcomed by the top people at Veikkaus. Namely, the company’s CEO, Olli Sarekoski, claimed that they would prefer any changes to come quickly. The Deputy CEO, Velipekka Nummikoski, mentioned Sweden’s licensing system as a potentially good solution.

Soon after, Finland’s Ministry of the Interior announced the initiation of a new online gambling licensing system. This shift was welcomed by The European Gaming and Betting Association (EGBA), which believes opening the market would have multiple benefits.