Veikkaus GGR Declines 3.6% Amid Regulatory Changes
Date: 2024-03-12 Author: Dima Zakharov Categories: PAYMENT SOLUTIONS
Regulatory Challenges Impact Veikkaus' Revenue
In 2023, the Gross Gaming Revenue (GGR) of Veikkaus, the state-owned Finnish gambling monopoly, experienced a decline of 3.6% to €1.03 billion. This decline marks yet another year of revenue decrease, with a 3.0% dip compared to 2022.
Seismic Regulatory Changes
The year 2023 was marked by substantial regulatory changes for Veikkaus. The Finnish government announced the termination of Finland’s existing gambling monopoly system by 2026, to be replaced by a new licensing system. This necessitated Veikkaus to split into several entities under the same group, resulting in significant operational adjustments.
Employee Layoffs and Closure of Casino Tampere
As a consequence of the monopoly's end, Veikkaus confirmed staff layoffs, affecting approximately 185-215 employees. Moreover, Casino Tampere ceased operations in December, less than two years after its launch.
Mandatory ID Requirement
Veikkaus introduced mandatory ID registration for all players, aiming to enhance responsible gambling practices. The data collected aided in identifying high-risk gambling behaviors and implementing targeted interventions.
Financial Performance
Veikkaus Oy, the parent company, recorded a 14.0% year-on-year decrease in profit for 2023, with operating profit declining by 14.7%. Increased lottery taxes and rising operational expenses contributed to the financial downturn.
Digital Channel Success
Veikkaus noted a significant shift towards digital channels, with 54.8% of customer gambling activities occurring online. Despite revenue declines, Veikkaus remains committed to digital investments to sustain growth.
In summary, Veikkaus faces regulatory hurdles and operational transformations, requiring strategic adaptations to maintain its market position and financial stability.
