Finnish government-owned betting agency Veikkaus is bracing for layoffs as the market prepares to embrace a partial multi-licence system from 2027. The organisation expects stiff competition from private gambling operators once the market opens to licensed private operators. To remain competitive in an open market, Veikkaus is planning a full-scale organisational restructuring, including layoffs, contract renegotiations, and new job roles.
Veikkaus Announces Restructuring Plans: Insights at a Glance
- Veikkaus has announced plans for internal restructuring in the wake of the Finnish gambling market opening to private operators starting in 2027. The government-owned betting organisation is focusing on its core business and expansion efforts.
- Several private gambling operators have expressed an interest in entering the Finnish market. Veikkaus is analysing the competition and implementing changes to its organisational structure to remain competitive.
- Veikkaus’ restructuring plans may affect 75 employment positions and alter job roles as per Section 16 of the Act on Co-operation. Estimates suggest 20-31 layoffs, 20-30 alterations, and 22-28 new employment positions.
Veikkaus Prepares for Open Gambling Market
According to Veikkaus’ official press release from October 20, the company has been working proactively to compete with private operators. Several gaming companies have expressed their interest in entering the Finnish market. Veikkaus is focusing on strengthening its core business in online gambling in Finland.
The state-owned betting provider has been working proactively to compete with private operators. In June, Veikkaus launched an online sports betting platform in association with OpenBet. The new platform is available across Veikkaus’ existing retail network of 4,000+ POS terminals nationwide.
Reija Laaksonen, Veikkaus’ Director of Communications and Human Resources, explained how the company plans to operate in an open market. He explained that while the Veikkaus brand remains strong, the restructuring would further streamline operations.
Laaksonen said:
The competition will certainly be really tough, as many signs already show. Veikkaus is a strong company that can compete with the competition, but as an organisation, we need to change in this situation.
The unprecedented change is the result of Finland’s evolving gambling ecosystem, which is preparing for updated regulations in 2027. While the provisions of the Gambling Act are under scrutiny following the Constitutional Law Committee’s criticism of vague marketing rules, Veikkaus wants to stay prepared for when the law is enforced.
Veikkaus Announces Plans for Organisational Restructuring
According to the latest announcement, Veikkaus’ restructuring strategy may affect 75 employment positions. The company can legally alter the contracts in accordance with the provisions of Section 16 of Finland’s Act on Co-operation. Veikkaus estimates that the restructuring may result in the termination of 20-31 positions within the current organisation.
However, Veikkaus is working to retain a majority of its existing employees. The company is considering negotiating employee contracts and compensation for 20-30 employees to accommodate them in the new structure. The restructuring strategy will also open up 22-28 new employment opportunities. The reshuffle will enable Veikkaus to streamline operations and boost growth.
Laaksonen explained that Veikkaus will pay close attention to business requirements and take calculated measures aligning with the new strategy. He said:
When targeting possible measures, Veikkaus will pay special attention to the organisation’s business requirements and to ensuring competence in line with Veikkaus’ strategy. Any measures would be implemented in accordance with applicable legislation.
Veikkaus will implement the restructuring strategy after three weeks unless otherwise agreed during the negotiation. The final plan will only be executed once negotiations conclude successfully. Veikkaus’ announcement highlights the challenges of transitioning from a closed to an open gambling market.
Apart from organisational hurdles, public awareness and enforcement are the core areas of concern. In the absence of online gambling regulations, Finnish consumers are active in reputable offshore casinos. However, as Finland prepares to regulate the market, educating consumers is necessary to ensure compliance.
In September, the Finnish police prosecuted two popular social media influencers for promoting offshore online casinos. Such actions are necessary alongside public awareness campaigns to educate consumers about trusted online casinos in Finland, as the market progresses towards a licensed structure.