Veikkaus accelerates restructuring and digital growth ahead of Finland's gambling market liberalisation

Veikkaus, Finland's state-owned gambling monopoly, is intensifying its restructuring efforts as the country moves toward a partially liberalised gambling market set to launch on 1 July 2027. The operator's latest organisational changes, announced this week, involve terminating 15 existing roles while creating 17 new positions across its Data & AI department, business units and finance teams. These negotiations mark a crucial phase in the company's transformation, expected to last approximately three weeks as Veikkaus positions itself for the competitive era ahead.

Strategic restructuring for market readiness

The current restructuring builds upon Veikkaus' fundamental May 2026 decision to split operations between two subsidiaries - one managing exclusive gambling products and another competing in the new licence-based market. This structural separation reflects the dual nature of Finland's gambling future where Veikkaus will operate both as a monopoly provider and a market competitor. The company has already taken concrete steps toward market participation by submitting licence applications as a private entity, joining about 50 other operators seeking entry into Finland's newly competitive space.

Leadership changes have formed a critical component of this transition. Late last year, Veikkaus eliminated the deputy CEO position after reassigning Velipekka Nummikoski to a new role. The company further strengthened its executive team with the August 2026 appointment of Chris Armes, a former Scientific Games veteran, as executive VP of Gaming Technologies. Armes will assume leadership of Veikkaus' technology organisation from Helsinki in autumn 2026, bringing extensive industry experience to guide the operator's technological evolution.

Financial performance highlights digital dominance

Veikkaus' interim H1 2026 results reveal steady financial growth amid its transformation. Sales revenue increased by 1% year-on-year to €471.3 million, with operating profit rising to €227.7 million from €220.6 million. Period profit reached €234.2 million compared to €229.6 million in H1 2025. These figures demonstrate Veikkaus' financial resilience during its transition period, with digital channels emerging as the primary growth driver. Digital gross gaming revenue now represents 64.5% of total revenue, marking a 3.6 percentage point increase from the previous year.

The company's customer base expanded to approximately 2,672,000 registered users by June 2026, adding around 50,000 new customers compared to the previous year. This growth in digital engagement reflects Veikkaus' successful efforts to transition players toward online platforms, a strategic priority as it prepares for market competition where digital offerings will be crucial for maintaining market share.

Segment performance reveals shifting dynamics

Analysis of Veikkaus' product segments shows distinct trends shaping its business. Lottery and land-based gaming generated €317.9 million in gross gaming revenue, maintaining stability compared to H1 2025. Within this segment, lottery games showed particular strength with €254.5 million in revenue, up from €246.1 million, benefiting from a 9.1% increase in digital lottery revenue. The June 2025 launch of the Milli lottery product contributed to this growth alongside improvements to the Veikkaus app.

Slot machines and physical table games experienced decline, with revenue falling to €63.4 million from €71.3 million. This reduction stems directly from Veikkaus' strategic decision to reduce its retail network and decrease the number of slot machines in operation, part of broader social responsibility measures and preparation for the new market structure.

Betting and iCasino operations showed positive momentum with gross gaming revenue rising to €151.6 million from €146.5 million. The iCasino segment's growth resulted from strategic expansion of its game catalogue and rapid development of live casino offerings, positioning Veikkaus more competitively for the open market where these products will face direct competition.

International expansion through Fennica Gaming

Veikkaus' international ambitions continue through its B2B subsidiary Fennica Gaming, which reported remarkable 80.6% revenue growth to €10.3 million in H1 2026. This expansion follows Fennica's strategic product launches across multiple jurisdictions including Italy, Canada, Germany, Mexico, the Czech Republic and Iceland. The subsidiary's success in obtaining an online supplier licence in the UAE last year marked another milestone in its global growth strategy.

Fennica now operates across 21 markets spanning three continents, having expanded its product offerings to include eInstants and iCasino solutions. Industry consultant Jari Vähänen estimates the entire Veikkaus business could reach a valuation of up to €4.5 billion following market liberalisation, reflecting both its domestic strength and international growth potential.

Preparing for the new regulatory landscape

Finland's Gambling Act, ratified in January 2026, establishes the framework for Veikkaus' future operations. From July 2027, the company will lose its monopoly on betting and iCasino products while retaining exclusive rights for lottery games, scratchcards, slot machines and physical table games. This partial liberalisation requires Veikkaus to pay market-based compensation estimated at €1 billion over a 10-year licence period, with significant upfront payments due in 2026.

Veikkaus has taken proactive steps to engage with the evolving industry landscape, including its recent membership in the Finnish Gambling Association. This trade body has long advocated for market liberalisation, and Veikkaus' participation signals its commitment to active engagement with industry stakeholders during this transitional period.

As Jarkko Nordlund, Veikkaus iGaming EVP, stated in July 2025:

'The competition will be fierce when the market opens, so we must be very competitive. Our aim is to challenge the mentality of our current position, so we need to secure market leadership.'

This statement encapsulates Veikkaus' strategic mindset as it navigates the complex transition from monopoly operator to competitive market participant while maintaining responsibility for Finland's exclusive gambling products.