Veikkaus restructures ahead of Finland's gambling market liberalization in 2027

Veikkaus, Finland's state-owned gambling monopoly, has initiated another round of organizational restructuring as it prepares for the country's gambling market liberalization scheduled for 1 July 2027. The operator announced on Wednesday that 15 existing roles will be terminated while 17 new positions will be created across several departments including Data & AI, business units and finance teams. Negotiations regarding these terminations and new hires are expected to last approximately three weeks.

Structural changes and leadership appointments

The restructuring forms part of Veikkaus' broader transformation following its May 2026 decision to establish two subsidiaries - one for exclusive operations and another for the upcoming competitive, licence-based market. This strategic split reflects the company's preparation for the new regulatory environment where it will compete with private operators for the first time. The company has already made significant leadership changes, including eliminating the deputy CEO position after Velipekka Nummikoski was moved to a new role, and appointing former Scientific Games veteran Chris Armes as executive VP of Gaming Technologies, who will assume his role in autumn 2026. Armes will lead Veikkaus' technology organization from its Helsinki headquarters, bringing extensive industry experience to the company's digital transformation.

Financial performance and digital growth

Veikkaus released its interim report for the first half of 2026, showing a 1% year-on-year increase in sales revenue to €471.3 million ($546.8 million). Operating profit rose to €227.7 million from €220.6 million, while profit for the period reached €234.2 million compared to €229.6 million a year earlier. Digital channels were the primary driver of this growth, with digital gross gaming revenue now representing 64.5% of total revenue, up 3.6 percentage points from the previous year. The operator's registered customer base grew to approximately 2,672,000 by the end of June, an increase of around 50,000 from the previous year. This digital expansion demonstrates Veikkaus' successful transition toward online platforms ahead of market liberalization.

Product segment performance

Lottery revenue increased to €254.5 million from €246.1 million, boosted by a 9.1% increase in digital lottery sales through the Veikkaus app and successful product launches such as Milli, which debuted in June 2025. However, slot machine and table game revenue declined to €63.4 million from €71.3 million, primarily due to a reduced retail network and fewer slot machines in operation. Betting and iCasino revenue grew to €151.6 million from €146.5 million, supported by an expanded game catalogue and rapid expansion of live casino offerings. Veikkaus' international B2B subsidiary Fennica Gaming saw revenue surge 80.6% to €10.3 million from €5.7 million, now operating in 21 markets across three continents following successful launches of eInstants and iCasino products in multiple jurisdictions including Italy, Canada, and the UAE, where it secured an online supplier licence last year.

Market liberalization preparations

Veikkaus is adapting to Finland's partial market liberalization under the new Gambling Act ratified in January 2026. From July 2027, the company will retain exclusivity over lottery games, scratchcards, slot machines and physical table games, while betting and iCasino products will become licence-based. The operator has submitted licence applications as a private entity, joining approximately 50 other companies that applied by the end of June. In a significant move, Veikkaus recently joined the Finnish Gambling Association trade body, which has long lobbied for market liberalization. Industry consultant Jari Vähänen, a former senior executive at Veikkaus, estimates the entire business could be valued at up to €4.5 billion following liberalization, reflecting the company's strong market position and growth potential in the new competitive environment.

Financial commitments and strategic outlook

The company has committed to paying market-based compensation for its exclusive operations, estimated at around €1 billion for a 10-year licence period with significant front-loaded payments in 2026. This financial commitment underscores Veikkaus' transition from monopoly operator to competitive market participant. The operator has also made key operational changes during this process, including switching its sportsbook backend from DraftKings to OpenBet to enhance its technological capabilities. As Veikkaus prepares for increased competition, iGaming EVP Jarkko Nordlund previously told iGB that '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 reflects the company's strategic ambition to maintain its dominant position despite the upcoming market changes.

Organizational transformation and future challenges

The current restructuring represents the latest phase in Veikkaus' multi-year transformation program. The creation of 17 new roles alongside 15 terminations indicates a strategic realignment of skills and capabilities rather than simple cost-cutting. The focus on Data & AI departments suggests an emphasis on data-driven decision making and customer analytics as the company prepares for intensified competition. With three years remaining until market liberalization, Veikkaus appears to be systematically addressing both organizational structure and product offerings to position itself as a strong competitor in Finland's future gambling landscape. The company's ability to maintain profitability while undergoing this transformation demonstrates its resilience, though the true test will come when it faces private sector competition in 2027.