Finlands government-owned gaming operator, Veikkaus, has declared plans to reduce its workforce and shut down gaming venues as the nation prepares to dismantle its gambling monopoly.
Veikkaus has cautioned that the impending termination of the gambling monopoly will result in staff reductions. The Finnish government intends to abolish Veikkaus’s gambling monopoly by 2026. This initiative aims to enhance Finlands channelization rate, which is presently low compared to similar nations.
The new framework will permit private entities to apply for licenses to operate sports betting and online casinos. Veikkaus will maintain its exclusive control over lotteries and retail slot machines.
The proposal also suggests dividing Veikkaus into separate companies within the same group. This would reverse the 2017 merger of the gambling brand Veikkaus, the slot machine business Raha-automaattiyhdistys, and the horse racing betting operator Fintoto.
Veikkaus has already commenced preparations for the end of its monopoly in specific sectors. The company states that this includes modifications to its organizational structure, with further discussions scheduled for this month.
Veikkaus intends to close gaming halls. Although the plans are still in their initial phases, Veikkaus has warned that the restructuring could lead to the loss of approximately 240 positions. An additional 195 employees may also experience “substantial” alterations to their employment terms.
The company also intends to decrease the quantity of its gaming locations from sixty-five to between forty and fifty. Furthermore, discussions are in progress concerning the shutting down of its Tampere gambling establishment.
Veikkaus’s chief executive, Olli Sarekoski, stated, “Getting ready for the transformation and internationalization of the gaming sector is a vital component of Veikkaus’s strategy for expansion.” “We are constructing a future where Veikkaus will be the most successful gambling enterprise in Finland and have a substantial impact on global markets.
“We aim to be competitive in the future licensed marketplace and have a significant influence in the monopoly market. Consequently, we must implement company-wide adjustments that affect our operations.
“This involves numerous simultaneous modifications. We are examining the entire organization from the standpoint of profitability and growth. We must also make difficult choices. For some, these alterations may result in the termination of their employment. We are concerned about them and will provide them with support.”
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