• Finnish state-owned operator Veikkaus has reported a 9% drop in pre-tax profit to €229.6 million for the first half of 2025.
• The company attributed the decline to lower lottery jackpots and “significant” investment in its digital capabilities as it prepares for the end of its monopoly.
• Finland is set to end Veikkaus’s monopoly and open a multi-licence online gambling market in January 2027.
• Veikkaus is proactively overhauling its entire iGaming division to ensure it can compete with the new wave of international operators.
• A bright spot was the company’s B2B arm, Fennica Gaming, which saw its revenue nearly triple after securing new licences in international markets.

Finland’s state-owned gambling monopoly, Veikkaus, has posted a decline in its first-half profits, a result the company says is a direct consequence of its heavy investment in preparing for the end of its monopoly status.

For the six months ending 30 June, the operator reported a 3.9% fall in Gross Gaming Revenue ( GGR) to €463.9 million. Pre-tax profit for the period was down 9% to €229.6 million. Veikkaus explained that the results were impacted by lower-than-usual jackpots on games like Eurojackpot, but were primarily shaped by a deliberate strategy of increased spending. The company is in the midst of a major transformation as it braces for the liberalisation of Finland’s online market.

The End of an Era: Preparing for Liberalisation

The Finnish government is moving ahead with plans to dismantle the country’s long-standing gambling monopoly and introduce a multi-licence system for online casino and betting, with a target launch date of January 2027. Unusually for an incumbent monopoly, Veikkaus has been a vocal supporter of the change and is now proactively overhauling its operations to compete.

“Everything we do now is focused on being fully prepared for the opening of the market – and ready to succeed in the new environment,” said President and CEO Olli Sarekoski. “We are especially focused on strengthening our digital capabilities across the entire group to ensure we remain competitive… Leveraging data and AI plays a key role in this transformation.”

A Complete Overhaul of the Digital Arm

To lead this digital overhaul, Veikkaus hired experienced media executive Jarkko Nordlund in late 2023 to be its iGaming EVP. The company is in the process of transforming its product and back-end operations and has been actively hiring talent with experience from Europe’s private operator sector.

Nordlund has previously spoken about the scale of the challenge. “Everyone is waiting for Veikkaus to fail,” he told iGB earlier this year. “The competition will be fierce when the market opens, so we must be very competitive.”

Fennica Gaming: A New B2B Growth Engine

While the domestic B2C business is preparing for competition, Veikkaus is also building a new international revenue stream through its B2B technology arm, Fennica Gaming. This division was a significant bright spot in the H1 results, with its revenue skyrocketing by 166.9% to €2.5 million.

The growth follows the transfer of Veikkaus’s game studio into the Fennica banner and the securing of new B2B vendor licences in key international markets, including Ontario (Canada), Greece, and the United Arab Emirates.

Veikkaus’s H1 2025 results paint a clear picture of a legacy monopoly in the midst of a profound and necessary transformation. The company is accepting a short-term hit to its profits in order to make the significant investments required to compete in the new, liberalised Finnish market of 2027.