Veikkaus is dividing its operations in three separate units and cutting about a quarter off its staff ahead of the termination of their gambling monopoly.
Veikkaus has confirmed that “about 185-225” of the 825 workers it employs will be losing their jobs following consultations with its staff. There will also be material changes to the employment conditions of “about 110-150 workers”.
Casino Tampere will also close on the 9th of December. This is less than 2 years since it opened.
Nineteen other gaming arcades are closing on December 22 after concluding discussions with representatives of the staff.
Veikkaus divides operations in three units
Veikkaus will be divided into three units of operations, each led by a senior vice president.
Nora Vahavirta will be overseeing domestic slot machines, arcades, and games of chance. Jarkko Norlund will oversee domestic betting and online casinos. Jarkko joined Veikkaus in September as the executive director.
Jonas Reuter will be in charge of the international operations for Veikkaus. He was recently employed by Veikkaus. Reuter was appointed EVP for international business in September. He is a former IGT executive and Scientific Games executive.
The layoffs are not as bad as originally expected
Veikkaus is undergoing a number of changes in its staffing. However, these aren’t as drastic as initially thought.
Veikkaus had warned in September that the company could lose up to 240 positions. Veikkaus also expected to make changes in the employment of 195 additional employees.
Heli Lallukka said that “smaller figures” had been finalised after “constructive dialog with personnel representatives”.
Lallukka continued: “In coming years we will make significant investments to improve our competitiveness.” Although we already possess top-level professionals, in the future it will be necessary to bring outside expertise into the business.
By the end of next year, the exact dates for the changes in employment will be known.
Arcade closures
Veikkaus operates 65 gambling venues in Finland, including Casino Tampere. It employs about 80 people.
The game arcades at Playhouse venues, including Joensuu Siltakatu and Helsinki Redi will be closed. Playhouse Lahti Trio will be closed, as well as Imatra, Mansikkala and Helsinki Kaisaniemi. Hameenlinna, Goodman, Mikkeli, Turku, Lappeenranta Leir, Turku, Skanssi.
Veikkaus arcades in Turku Aurakatu Kuopio Kastiokatu and Helsinki Tripla are also closing. In December, the Pelaamo Seinajoki Ideapark, Oulu Kauppurienkatu, and Game Room operations at Tornio Raja will close.
Monopoly Model Ending In Finland
As part of a wide range of reforms, the Finnish government announced in June that it plans to eliminate Veikkaus’ gambling monopoly before 2026.
By directing more customers to licensed operators, the primary goal is to minimize financial and social harms associated with gambling. A report published in April revealed that about half of all gaming in Canada is conducted on non-licensed platforms.
A new proposed system will allow companies to obtain a license to operate online casinos and sportsbooks. Veikkaus will retain the monopoly for retail slots and lottery.
Veikkaus will be split up in separate groups. This would reverse a 2017 merger between betting brand Veikkaus, slot business Raha-automaattiyhdistys and horse race betting operator Fintoto.
