According to Veikkaus, the state-run gambling operator in Finland, sales income fell 7.3% in 2024, totaling €956.2 million ($1.02 billion). Furthermore, operational profit fell to €466.8 million, a 19.6% decrease. The corporation ascribed this decline to a growth in investments and the lottery tax, which climbed from 5% to 12% and generated a tax contribution of €114.2 million to the Finnish government.
Regulations pertaining to scratch card and ticket-based games were altered, which also had an effect on gross gaming revenue. Despite these obstacles, Veikkaus said that retail sales accounted for 39.8% of its overall revenue, with digital gaming accounting for almost 60%. Additionally, the company added 80,000 new registered customers, increasing its user base to 2.6 million.
International Growth Through Fennica Gaming
Veikkaus faced difficulties at home, but in 2024, its business-to-business company Fennica Gaming expanded to three continents. Important markets like the US, UK, France, and Sweden are served by the company’s online lottery and slot solutions.
Sales for Fennica Gaming were €3 million, an 181% increase from the previous year. Nevertheless, the business nevertheless reported a loss of €8.6 million, which was 14% more than the year before. The subsidiary had formed alliances with 14 corporate clients by the end of 2024.
Despite ongoing financial struggles, Veikkaus remains optimistic about the upcoming changes to Finland’s gambling laws. Starting in 2026 or early 2027, the country will introduce a licensing system for online gambling, allowing private operators to enter the market. Veikkaus will receive a separate license to compete in this new landscape while retaining exclusive rights over retail slots and lottery operations.
Commenting on the transition, Veikkaus CFO Regina Sippel stated, “The reform of the gambling system is a great opportunity for Veikkaus, and we have done long-term work to prepare for the future.” She added that the company remains focused on international growth and business development under its mission, “We passionately drive better gaming.”
However, the company has also warned that the changes could result in job cuts, with up to 620 employees facing redundancy. Additionally, the rise of offshore gambling continues to challenge Veikkaus’ market position. Estimates suggest that Finnish players spent €550 million on unauthorized gambling sites in 2024, though some experts believe the figure could be as high as €900 million.
Jari Vähänen, a former Veikkaus executive and partner at Finnish Gambling Consultants, noted that the illegal market could significantly affect the country’s gambling channelization efforts. Regarding Fennica Gaming’s expansion, he commented, “The company’s turnover rose to 3 million euros last year, but there was still quite a lot of loss—around €8.5 million. I hope my ex-colleagues succeed, but making big profits in that B2B business is challenging.”
As Veikkaus navigates these shifts, its ability to adapt to the new regulatory landscape and strengthen its international operations will determine its future success.
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