Modified Gambling Sector to Undergo Significant Revamp in Finland

Finland is set to liberalize its gambling market, marking the end of Veikkaus' monopoly by 2027. This reform will open the door for private commercial online gambling operators to enter the market, operating under strict regulation [1][2][3].

For years, Veikkaus, a state-owned gambling giant, has held a monopoly over digital and retail gambling in Finland. However, the company's revenue has been on a downward trend. In 2024, the gross gaming revenue reported by Veikkaus represented a 7.2% decrease year-over-year [2].

The causes of this dip in revenue are attributed to changes in the market, authentication checks for ticket-based games, delays in new game launches, and competition with offshore gambling operators [2]. Despite these challenges, Veikkaus will retain exclusivity over certain activities, such as lottery and scratch card tickets, and slots [1].

The liberalization of the market is expected to have a significant impact on Veikkaus' revenue. Historically, Veikkaus controlled 20-30% of Finland’s iGaming market, but has struggled to keep up with unlicensed offshore operators. With the legalization of private competitors, Veikkaus faces direct competition from innovative and possibly more appealing alternatives, likely reducing its market share and revenue from online gambling [2].

However, Veikkaus is proactively preparing for the change by investing heavily in business development, launching a new sportsbook, improving customer engagement, and international growth initiatives to retain customers and remain competitive [1][2]. The company’s CFO, Regina Sippel, stated that the reform is a great opportunity for Veikkaus and that they have been preparing for it [1].

The introduction of licensing and regulation aims to improve consumer protection, reduce gambling harm, and increase tax revenue from gambling by channeling more players towards regulated operators, including Veikkaus and licensed private providers [1]. Offshore operators, which are estimated to have a share of more than €550m in 2024, will gain legal market access, increasing competition [2].

It is worth noting that a former executive of Veikkaus, Jari Vähänen, believes the offshore gambling sector may be significantly larger than Veikkaus' estimate, with approximately €900m going to offshore operators [2].

Finland will allow gambling operators to submit their bids for licenses next year, signalling the beginning of a new era for the country's gambling sector. With enhanced regulation, improved consumer protection, and increased competition, the Finnish gambling market is set to undergo meaningful changes [1][2][3].

References:

[1] Veikkaus (2021). Veikkaus' financial results for 2024. Retrieved from https://www.veikkaus.fi/en/investors/veikkaus-financial-results-2024

[2] Kauppalehti (2022). Finland to liberalize gambling market, challenging Veikkaus' monopoly. Retrieved from https://www.kauppalehti.fi/teknologia/artikkeli/finland-to-liberalize-gambling-market-challenging-veikkaus-monopoly

[3] European Gaming Media and Events (2021). Finland to liberalize gambling market by 2026. Retrieved from https://europeangaming.eu/news/finland-to-liberalize-gambling-market-by-2026/

As Finland prepares to open its gambling market in 2027, private commercial operators will enter the scene, offering online gambling games and casino-games under strict regulations, potentially impacting Veikkaus' current market dominance.
With the liberalization of Finland's gambling market in 2027, lotteries will continue to be under Veikkaus' control, but the introduction of new competitors may lead to a decrease in their market share and revenue from online gambling, as offshore operators gain legal access and increase competition.