Veikkaus enters new chapter

Veikkaus enters new chapter

Monday, February 27, 2017
Merger will ‘create better consumer proposition’

Finnish stated-owned gambling operator Veikkaus has stated that Finland’s social, sports and healthcare organisations will benefit greatly from its unified operations moving forward. 

 Led by new Group chief executive Olli Sarekoski, Finland has completed the merger of its three former state gambling enterprises RAY (slots), Fintoto (horseracing) and Veikkaus (sports-betting) under the Veikkaus umbrella in a move to create a better market proposition for Finnish betting/gaming consumers. 

Updating the market, Veikkaus reported the final results of RAY, Fintoto and Veikkaus as independent assets. 

Racing enterprise Fintoto reported flat-lining sales of €235m while Veikkaus betting and RAY slots declared record-breaking years for their respective businesses. The Veikkaus betting enterprises would record total profits of €580m, while Ray slot arcades would declare a turnover €809.4m, combined with an underlying corporate profit of €423.5m.

The favourable 2016 results means that Veikkaus is positive of being able to tackle foreign competitors within the estimated €3.5bn Finnish gambling market.

Entering 2017, Veikkaus has targeted growing its digital gaming services, where unlicensed foreign operators have targeted national consumers. At present, the firm estimates that the unlicensed share of the total Finnish gambling market remained at circa 8 percent.

Totally Gaming says: Unifying its gambling enterprises was the correct move by Finnish authorities, as they look to further protect the country’s lucrative player base from foreign competitors. Should Veikkaus  create an effective stated-owned gambling enterprise, the market will become harder to more costly for foreign competitors to enter.

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