SBC News Voice of the Sports Betting Industry
Finland’s state-owned gambling monopoly, Veikkaus, has revealed a significant downturn in both revenue and profit as Finland’s parliament prepares for the overhaul of its national gambling regime in 2027.
For the period from January to June 2024, Veikkaus reported a 6.8% decline in sales revenue, which fell to €483.8 million ($535.4 million).
Gross gaming revenue (GGR) decreased by 21% year-on-year, a drop attributed largely to the mandatory ID verification requirements for ticket-based games introduced in 2023.
Veikkaus explained that the ID verification rule for these games led to a 21% decrease in sales. Additionally, the introduction of an ID requirement for scratchcards this year caused revenue in that category to decline by 44% compared to the same period last year.
Operating profit for Veikkaus also fell sharply, down 20.4% to €246.9 million, while total group profit declined by 19.1% to €252.3 million.
The monopoly attributed these reductions to substantial investments aimed at future growth and the return of the lottery tax to its previous rate of 12%, up from a temporarily reduced rate of 5%.
H1 trading saw Veikkaus pay €57.6 million in lottery tax to the state, an increase of €31.7 million from the previous year.
The parent company, Veikkaus Oy, also faced similar declines, with gross gaming revenue dropping by 7% to €482.8 million and operating profit decreasing by 20.1% to €250.2 million.
Consequently, Veikkaus Oy’s total financial profit for the first half of the year stood at €255.6 million, reflecting an 18.8% year-on-year decline. Total contributions to the state for this period amounted to €313.2 million, down 8.1% from the same period in 2023.
Despite these setbacks, Veikkaus highlighted some positive aspects of its performance. The number of registered customers increased by 15,000 in the first half of the year, bringing the total to over 2.5 million by the end of June 2024.
Strategic improvements saw the company’s digital channels accounted for 60.5% of gross gaming revenue, indicating a growing shift towards online gambling.
Looking ahead, Veikkaus is preparing for significant changes to Finland’s gambling industry. It was confirmed in June 2023 that Veikkaus’ current monopoly structure will be dismantled by 2026, resulting in the creation of separate companies within the same group.
Veikkaus CFO Regina Sippel said: “During the first half of the year, we implemented Veikkaus’ strategy as planned, investing in both business development and international growth. Fennica Gaming reached significant results during the first half of the year, and the future Outlook is bright.
“The upcoming overhaul of the gambling system is a great chance for Veikkaus, and we will continue to Invest in business development, and offering the best customer experience.”
