Veikkaus, Finland's state-owned gambling operator, is undergoing a significant internal restructuring in anticipation of the country's forthcoming gambling market liberalization, set to take effect on July 1, 2027. This reorganization is part of Veikkaus's efforts to bolster its competitive edge amid changing market dynamics.
On Wednesday, the company announced the termination of 15 existing roles and the creation of 17 new positions, affecting various units, including the Data & AI department, two business units, and finance teams. The negotiations surrounding these terminations and new roles are expected to last about three weeks.
This restructuring is part of a broader shift initiated after Veikkaus decided in May 2026 to create two distinct subsidiaries: one focusing on exclusive operations and the other catering to the newly competitive, license-based market. Veikkaus has submitted its license applications as a private entity, joining approximately 50 other applicants looking to enter the market by the end of June.
The company initiated a management overhaul late last year as part of its transition strategy, which included eliminating the deputy CEO position after Velipekka Nummikoski transitioned into a different role. In this period, Veikkaus has made significant operational and technological adjustments, such as switching its sportsbook backend from DraftKings to OpenBet and hiring experienced industry professionals to oversee its competitive operations.
Chris Armes, a former executive at Scientific Games, was appointed as the new Executive Vice President of Gaming Technologies, set to assume his responsibilities in autumn 2026 from the company's Helsinki headquarters.
In an interview from July 2025, Jarkko Nordlund, Veikkaus's iGaming EVP, 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."
In its recently released interim report for the first half of 2026, Veikkaus reported its sales revenue rose by 1% to €471.3 million ($546.8 million). Operating profit increased to €227.7 million, up from €220.6 million, while profit for the period reached €234.2 million, compared to €229.6 million in the same timeframe the previous year. The company credits this growth to the rising performance of its digital channels, which accounted for 64.5% of total gross gaming revenue in the first half of 2026, representing a 3.6 percentage point increase from the prior year. Registered customers grew to about 2,672,000 by the end of June, an increase of approximately 50,000 year-over-year.
In terms of gaming categories, lottery and land-based gaming generated €317.9 million in gross gaming revenue, remaining flat compared to the first half of 2025. Lottery games saw a slight uptick, contributing €254.5 million, boosted by a 9.1% increase in digital lottery revenue driven by the Veikkaus app and new product introductions like Milli, launched in June 2025. Conversely, revenue from slot machines and physical table games fell to €63.4 million from €71.3 million, mainly due to a smaller retail network and fewer operational slot machines.
Betting and iCasino gross gaming revenue rose to €151.6 million from €146.5 million, with growth in iCasino attributed to an expanded game catalog and the rapid development of live casino services.
Veikkaus' international B2B subsidiary, Fennica Gaming, demonstrated substantial growth, with revenues increasing by 80.6% to €10.3 million from €5.7 million in the previous year. This expansion aligns with the launch of eInstants and iCasino products across various regions, including Italy, Canada, parts of Germany, Mexico, the Czech Republic, and Iceland, with operations now spanning 21 markets across three continents. Fennica obtained an online supplier license in the UAE last year.
Looking ahead to the planned market liberalization, which is being implemented under the new Gambling Act ratified in January 2026, Veikkaus will lose its exclusivity over betting and iCasino products in July 2027, though it will retain exclusive rights to lottery games, scratchcards, slot machines, and physical table games. The company has committed to compensating the market based on operational volume, an estimate of around €1 billion over the forthcoming ten-year licensing period, with a significant upfront payment scheduled for 2026. This week, Veikkaus also joined the Finnish Gambling Association, a trade body advocating for market liberalization.
