Veikkaus restructures and reports steady growth ahead of Finland’s 2027 gambling market liberalisation

Finland's state-owned gambling operator Veikkaus has initiated another significant phase of internal restructuring as the company prepares for the country's historic transition to a partially liberalised gambling market set to commence on 1 July 2027. The latest organisational changes, announced this week, involve the termination of 15 existing roles and the creation of 17 new positions across key departments including the Data & AI unit, two business divisions and finance teams. These workforce adjustments are expected to be finalised following approximately three weeks of negotiations with affected employees.

Strategic restructuring for market competition

This restructuring forms part of Veikkaus' comprehensive transformation strategy initiated in May 2026 when the company decided to establish two separate subsidiaries - one dedicated to managing its exclusive gambling products and another focused on competing in the new licence-based market. The operator has taken concrete steps to position itself as a competitive player in the future market landscape, including submitting licence applications as a private entity. Approximately 50 other companies have also applied for licences to operate in Finland's newly liberalised gambling market by the June deadline.

The organisational overhaul follows last year's management reshuffle which saw the elimination of the deputy CEO position previously held by Velipekka Nummikoski, who was reassigned to a new role within the company. These structural changes reflect Veikkaus' recognition of the need to adapt its operations and corporate culture to thrive in a competitive environment, as emphasised by iGaming EVP Jarkko Nordlund in July 2025 when he stated: "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."

Technology transformation and executive appointments

Veikkaus has made substantial investments in upgrading its technological infrastructure as part of its preparation for market liberalisation. A significant development was the company's decision to replace its sportsbook backend technology, transitioning from DraftKings to OpenBet's platform. This change represents a strategic move to enhance the operator's sports betting capabilities ahead of increased competition.

The company has also strengthened its leadership team with high-profile industry appointments. In early August 2026, Veikkaus named former Scientific Games veteran Chris Armes as its new Executive Vice President of Gaming Technologies. Armes, who brings extensive experience from the global gaming technology sector, is scheduled to assume his role in autumn 2026 and will lead Veikkaus' technology organisation from the company's Helsinki headquarters. This appointment underscores Veikkaus' commitment to building a world-class technology team capable of competing in the new market environment.

Financial performance highlights digital growth

Veikkaus' interim financial report for the first half of 2026 demonstrates stable performance during this transitional period. The company reported a 1% year-on-year increase in sales revenue to €471.3 million ($546.8 million), with operating profit rising to €227.7 million from €220.6 million in the same period last year. Profit for the period reached €234.2 million, showing an increase from €229.6 million in H1 2025.

Digital channels emerged as the primary growth driver, accounting for 64.5% of the parent company's total gross gaming revenue in the first half of 2026 - a 3.6 percentage point increase compared to the previous year. This digital expansion was accompanied by growth in the customer base, with registered customers increasing by approximately 50,000 year-on-year to reach about 2,672,000 by the end of June 2026.

The lottery segment proved particularly resilient, generating €254.5 million in gross gaming revenue compared to €246.1 million in H1 2025. This growth was largely propelled by a 9.1% increase in digital lottery revenue through the Veikkaus app and successful product launches such as the Milli lottery game introduced in June 2025. However, revenue from slot machines and physical table games declined to €63.4 million from €71.3 million, primarily due to the ongoing reduction of Veikkaus' retail network and fewer operational slot machines.

International expansion and market valuation

Veikkaus' international B2B subsidiary, Fennica Gaming, has become an increasingly important part of the company's growth strategy. Fennica reported an impressive 80.6% revenue increase to €10.3 million in H1 2026, up from €5.7 million in the same period last year. This rapid expansion follows the successful launch of eInstants and iCasino products across multiple jurisdictions including Italy, Canada, Germany, Mexico, the Czech Republic and Iceland.

The subsidiary has significantly expanded its global footprint, now operating in 21 markets across three continents. A major milestone was achieved when Fennica secured an online supplier licence in the UAE last year, marking its entry into the Middle Eastern market. Industry consultant Jari Vähänen, a former senior executive at Veikkaus, estimates that the company's entire business could be valued at up to €4.5 billion following the liberalisation of Finland's gambling market.

Regulatory framework and future market structure

The restructuring and strategic changes at Veikkaus are occurring against the backdrop of Finland's new Gambling Act, which was ratified in January 2026. This legislation establishes a partial liberalisation of the country's gambling market, with Veikkaus set to lose its monopoly over betting and iCasino products from July 2027. These verticals will transition to a licence-based system, while Veikkaus will retain exclusive rights for lottery games, scratchcards, slot machines and physical table games.

As part of the new regulatory framework, Veikkaus has committed to paying market-based compensation for its exclusive operations. The company estimates this will amount to approximately €1 billion over a 10-year licence period, with a significant front-loaded payment scheduled for 2026. In a strategic move to align with the evolving industry landscape, Veikkaus recently joined the Finnish Gambling Association, the trade body that has long advocated for market liberalisation.

These comprehensive preparations position Veikkaus to handle Finland's historic transition from a monopoly gambling market to a competitive landscape while maintaining its social responsibility commitments under the oversight of Finland's gambling authority. The company's restructuring, technology investments and financial performance suggest it is taking proactive steps to secure its position as a leading operator in both the exclusive and competitive segments of Finland's future gambling market.