Veikkaus accelerates restructuring and reports digital growth ahead of Finland's 2027 gambling market liberalization

Finland's state-owned gambling operator Veikkaus has entered another phase of its comprehensive restructuring program as the country moves closer to its landmark gambling market liberalization scheduled for 1 July 2027. The operator announced substantial organizational changes this week, eliminating 15 existing positions while creating 17 new roles across key departments. This strategic reshuffle primarily affects the Data & AI division, two business units, and finance teams, with negotiations expected to continue for approximately three weeks.

Strategic transformation for competitive positioning

The current restructuring forms part of Veikkaus' broader organizational transformation that began in May 2026 with the establishment of two distinct subsidiaries. One subsidiary focuses on maintaining exclusive operations in Finland's monopoly market segments, while the other prepares for competition in the newly liberalized, license-based gambling market. This dual structure represents a fundamental shift for the state-owned operator as it transitions from complete market dominance to operating within a competitive framework.

These structural changes follow significant leadership realignments implemented late last year, including the elimination of the deputy CEO position after Velipekka Nummikoski was reassigned to a new role within the organization. The company has also made strategic technology investments, notably switching its sportsbook backend from DraftKings to OpenBet to enhance its competitive capabilities.

Financial performance highlights digital dominance

Veikkaus released its interim financial results for the first half of 2026 this week, reporting a 1% year-on-year increase in sales revenue to €471.3 million. The company's operating profit rose to €227.7 million from €220.6 million, while period profit reached €234.2 million compared to €229.6 million in H1 2025. This positive financial performance was driven primarily by growth in digital channels, which now account for 64.5% of total gross gaming revenue, representing a 3.6 percentage point increase from the previous year.

The operator's registered customer base grew to approximately 2,672,000 by the end of June 2026, adding around 50,000 new customers compared to the previous year. This expansion in digital engagement reflects Veikkaus' successful efforts to transition players from retail to online channels ahead of market liberalization.

Detailed segment performance analysis

Lottery and land-based gaming operations generated €317.9 million in gross gaming revenue during H1 2026, remaining stable compared to the same period in 2025. Within this segment, lottery games contributed €254.5 million, showing growth from €246.1 million in the previous year. This increase was fueled by a 9.1% rise in digital lottery revenue, supported by the Veikkaus mobile app and successful product launches including Milli, which debuted in June 2025.

Revenue from slot machines and physical table games declined to €63.4 million from €71.3 million, a reduction attributed to Veikkaus' strategic reduction of its retail network and fewer operational slot machines. Meanwhile, the betting and iCasino segment showed positive momentum with gross gaming revenue increasing to €151.6 million from €146.5 million. This growth was driven by an expanded game catalog and rapid expansion of live casino offerings, positioning the company more competitively ahead of market liberalization.

International expansion through Fennica Gaming

Veikkaus' international B2B subsidiary, Fennica Gaming, demonstrated remarkable growth during the first half of 2026, with revenue surging 80.6% to €10.3 million from €5.7 million in the previous year. This expansion reflects the successful launch of eInstants and iCasino products across multiple markets including Italy, Canada, parts of Germany, Mexico, the Czech Republic and Iceland.

Fennica now operates in 21 markets across three continents and multiple gaming verticals, having secured an important UAE online supplier license last year. The subsidiary's rapid international growth provides Veikkaus with valuable experience in competitive markets and diversified revenue streams as it prepares for domestic competition.

Preparing for market liberalization

Under Finland's new Gambling Act ratified in January 2026, Veikkaus will maintain exclusive rights for lottery games, scratchcards, slot machines and physical table games after July 2027, while losing its monopoly on betting and iCasino products. The company has already submitted license applications as a private entity, joining approximately 50 other operators seeking entry to Finland's newly competitive market.

In a significant strategic move, Veikkaus recently joined the Finnish Gambling Association, the trade body that has long advocated for market liberalization. The company has committed to paying market-based compensation for its exclusive operations, estimated at around €1 billion over a 10-year license period, with a substantial upfront payment scheduled for 2026.

Leadership and technological advancements

Veikkaus has strengthened its executive team with several high-profile appointments, including former Scientific Games veteran Chris Armes as Executive VP of Gaming Technologies. Armes is set to assume his position in autumn 2026, leading the company's technology organization from its Helsinki headquarters. The recruitment of industry veterans like Armes underscores Veikkaus' commitment to building competitive capabilities ahead of market liberalization.

Jarkko Nordlund, Veikkaus iGaming EVP, emphasized the company's determination to maintain market leadership in July 2025, stating:

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.

Industry consultant Jari Vähänen, a former Veikkaus executive, has estimated the company could be valued at up to €4.5 billion following market liberalization, reflecting its strong market position and digital capabilities.