Veikkaus braces for the end of Finland’s gambling monopoly
For decades, Veikkaus, Finland’s state-owned gambling company, has held a monopoly over gambling, but by 2027, the country will move to a multi-licence system that will bring in private operators and open the market to greater competition.
Policy makers evoked the need to curb the growth of unlicensed online gambling and improve safeguards against gambling-related harm to justify the opening of the market.
Preparing for competition
Veikkaus’ latest half-year results reveal both the pressures of a changing market and the scale of its preparations for life after monopoly. The company reported revenues of €466.4 million in the first six months of 2025, down 3.6% on the previous year. Net profit fell nearly 10% to €229.6 million.
Several factors contributed to the decline. The launch of the company’s much-anticipated Milli lottery game was delayed due to regulatory approval, while Eurojackpot prize levels were lower than in 2024. Broader economic conditions, including declining consumer purchasing power, also weighed on results.
“Many different factors influenced the decline in the domestic gambling business’s gross gaming revenue,” the company noted in its interim report. “The launch of the new Milli game was delayed from the planned schedule … and prize levels in Eurojackpot were lower than in the previous year. In addition, changes in general consumer behaviour and reduced purchasing power affected Veikkaus’ business”.
Chief executive Olli Sarekoski insisted the company is on the right path, pointing to the successful launch of Milli in June and ongoing digital upgrades. “We develop our competitiveness towards the multi-licence market … Everything we do at the moment aims at being ready when the market opens and being able to win in the new situation,” he said in the company’s interim review.
He added: “At Veikkaus, our intention is to improve what we do every day. In order to succeed in a competitive market, we too must change in a direction that better enables our competitiveness”.
International expansion gains pace
As its domestic market falters, Veikkaus is placing big bets on international growth through its subsidiary, Fennica Gaming. The unit, which develops digital scratch cards and casino games for other operators, saw its revenue almost triple compared to the same period in 2024.
The report highlights that Fennica Gaming secured business-to-business licences in Ontario, Canada, as well as in Greece and the United Arab Emirates. It now operates on three continents. Sarekoski hailed the move, saying: “Our subsidiary Fennica Gaming’s early year has been very promising. Our game studio transferred in the spring to become part of Fennica Gaming’s organisation, which helps us better serve our international customers and speed up game development”.
This international push is designed not only to hedge against falling revenues at home but also to position Veikkaus as a credible competitor once Finland’s borders open to rival operators.
The new gambling order
The government’s reform will formally end Veikkaus’ exclusive control of online gambling, sports betting and slot machines. Under the new model, private companies will be able to apply for licences to operate in Finland, provided they meet strict conditions around consumer protection and responsible gaming.
Applications will open in January 2026, with licences taking effect from 2027. The state-owned company will retain its monopoly only over lottery games and physical slot machines in kiosks and casinos.
To increase transparency and identify risks early, the reform also introduces annual reporting obligations for licensees, covering financial performance, marketing activity, and harm-prevention measures.
Operators will be required to pay supervisory contributions calculated on gross gaming revenue, ensuring the new regulatory body is funded in a sustainable way. While the system is designed to balance market liberalisation with player protection, it has already attracted scrutiny in Brussels, with Malta raising objections over its compatibility with EU competition rules.
Challenges at home
Veikkaus still controls nearly half of Finland’s €970 million gambling market, but its dominance is eroding. According to figures in its interim report, around €505 million was gambled through foreign online providers in the first half of 2025, a 2% increase compared with the previous year.
Nearly 61% of Veikkaus’ revenue in early 2025 came from online platforms, compared with 39% from physical outlets. Despite mandatory customer identification introduced in 2024, which was meant to strengthen oversight, Veikkaus is losing ground in the online space.
Still, the company insists it is adapting. Sarekoski described new investments in artificial intelligence and data systems to improve customer service and responsible gambling monitoring. “We are preparing for the multi-licence market by building a new safety net model that strengthens an even more individual way of preventing gambling harms,” he concluded.
