Veikkaus redundancies likely as monopoly prepares for life in re-regulated Finnish gambling market
In June last year, the Finnish government announced Veikkaus’ current monopoly system would end “no later than 2026”. This was confirmed in a draft bill published in July this year, setting out plans for the new-look market to launch in 2027.
Veikkaus has been largely supportive of the plans but has warned on several occasions that it will impact jobs at the operator. State-owned Veikkaus will be split into separate companies that form part of the same group ahead of the market launching. Its monopoly arm covering land-based slots and lottery, B2B subsidiary Fennica Gaming and a licensed online gaming business will operate as separate entities.
Last November, Veikkaus said November “about 185-215” employees would lose their jobs. Veikkaus’ Casino Tampere was also shut in December, less than two years after it opened.
Now, has Veikkaus set out details of further changes, aimed at ensuring it remains competitive in the Finnish market. This, it said, could include new jobs and roles, with others to be reevaluated and restructured.
With this, Veikkaus has issued a proposal for change negotiations, covering between 580 and 620 employees. This could lead to between one and four terminations and material changes to between 10 and 37 other roles.
Restructuring an opportunity for Veikkaus to reform and grow
Speaking on the changes, Veikkaus executive vice-president of HR, Heli Lallukka, reiterates the aim to keep the operator competitive. This includes both the land-based market and monopoly market.
“In practice, we are aiming at an operating model through which we can focus on our core business,” Lallukka said. “The planned measures would enable us to deal with the changes in Veikkaus’ mission and operating environment, as well as with the changes in the overall gambling sector.
“It may also mean changes to the organisational structure and the operating models,” she added.
As it transitions to a product-led organisation, it will first look at the roles within its technology functions and its development processes. She even hinted at further international expansion plans, with its Fennica Gaming B2B arm already striking supply deals around the world.
“This [will] require some restructuring,” Lallukka said.
She added that Veikkaus views this as a “turning point” for the business, providing an opportunity to reform and grow.
“We will continue to invest in business that we deem to be significant for Veikkaus’ future competitiveness,” Lallukka said. “We want to turn Veikkaus into a company that is a major operator both in Finland and internationally, the customers’ first choice, and a shared source of pride of all Finns.”
Veikkaus profits drop 19.1% in H1
The announcement comes on the back of Veikkaus this week publishing its H1 results, with both revenue and profit down.
Gross gaming revenue (GGR) fell by 21%, while sales revenue was also 68% lower.
Additionally, operating profit plunged by 20.4% to €246.9m, with total group profit dropping 19.1% to €252.3m.