(AsiaGameHub) – The Finnish state-owned firm may be worth billions of euros after the shift to a licensed market model on 1 July 2027. This has reignited discussions about a possible partial or complete divestment of Veikkaus.
Veikkaus, which has directed its earnings to the public treasury for decades, will forfeit its monopoly on online casino games and sports betting under the new licensing framework. This development has led political groups and industry experts to re-evaluate its future ownership structure and function.
To ready itself for the impending market opening, the company has divided into two separate units. The independently run online division is undergoing active restructuring to guarantee it can rival the influx of private competitors entering the licensed market.
Political divisions over Veikkaus’s fate
A recent poll by Finland’s national broadcaster Yle revealed a divided political landscape concerning a Veikkaus sale. Opposition parties like the Social Democratic Party (SDP) and the Centre Party showed openness to a sale.
SDP Party Secretary Mikkel Näkkäläjärvi stated that “the state has no specific strategic interest in owning a gaming company in this scenario,” adding that a sale would hinge on whether the funds could be deployed more effectively for economic or public good.
In a similar vein, Mika Lintilä of the Centre Party indicated Veikkaus was “no longer a strategic asset for the state in the manner it once was.”
The populist Liike Nyt party, which holds one seat in parliament, called for the full privatisation of Veikkaus and a public stock market listing.
In contrast, the Left Alliance (Vänsterförbundet) was the sole party firmly against a sale. MP Timo Furuholm highlighted Veikkaus’ established track record as a dependable source of state income.
Parties within the government coalition were more reserved. The National Coalition Party (Samlingspartiet) avoided a definitive position, citing the necessity for a thorough government analysis of market conditions and social consequences.
The Swedish People’s Party (SFP), whose minister Joakim Strand manages state ownership, abstained from commenting to prevent a conflict of interest. The Finns Party and the Christian Democrats did not outright endorse or reject divestment but cautioned against using a one-off sale to finance ongoing expenditure, reaffirming that preventing gambling-related harm is the top priority.
Veikkaus could be valued at €4.5 billion
In a 22 May interview with Yle, industry advisor Jari Vähänen, a former senior Veikkaus executive, confirmed there is active commercial interest from international operators in a potential acquisition.
“A few gaming firms have reached out to us to inquire if Veikkaus could be on the market,” he informed Yle.
Vähänen projected the whole enterprise could be worth as much as €4.5 billion ($5.24 billion). This valuation applied a 10x multiplier to Veikkaus’ yearly gaming surplus of €450 million (US$523 million).
He calculates that digital operations, encompassing online casino and sports betting, might be valued between €1 billion and €1.5 billion.
Conversely, the remaining monopoly segments, including Lotto and gaming machines, could be worth approximately €3 billion.
Vähänen warned that Veikkaus’ financial performance has almost decreased by half in five years and that extended uncertainty could further diminish its value once the licensing system begins.
He has previously emphasised the importance of the company’s legacy player database, which contains details on up to 2.5 million customers.
“If they cannot transition those customers, the value of Veikkaus’ licensed operations will be substantially reduced. However, if they launch with 2.5 million customers, they will command the market,” he told the broadcaster recently.
Several stakeholders have pointed out that the competitive licensed environment will alter Veikkaus’ revenue flow. This necessitates an assessment of long-term financial effects and public welfare protections before any privatisation moves forward.
Vähänen has openly recommended the government divest its stake. He argued that the state’s dual role as a Veikkaus shareholder and regulator creates a significant conflict of interest. “State ownership of a gambling firm in a competitive market is at best a dubious arrangement,” he wrote in his 2024 draft response to the initial liberalisation proposal.
Veikkaus online arm prepares for competition
Speaking to iGB in March 2025, Veikkaus EVP of Casino and Sports Betting Jarkko Nordlund said the company is striving to secure a leading position in the forthcoming open online market.
To demonstrate its capabilities domestically, the firm embarked on a significant technology and product upgrade several years ago. This involved migrating its sportsbook platform from DraftKings to OpenBet.
In April, Maija Strandberg, Director of the Government Ownership Steering Department, suggested an imminent sale was improbable, proposing 2030 as a more likely timeframe. Strandberg outlined three critical prerequisites: legislative amendments to permit a sale, robust corporate governance, and a favourable market climate.
She also noted that Veikkaus’ historical profitability does not assure future appeal; the company must demonstrate it can compete effectively in the new licensed market.
A steady decline
Even before its monopoly ends, Veikkaus has seen a persistent drop in revenue in recent years. In a 2024 conversation with iGB, Antti Koivula, then a gaming lawyer in Finland, observed that “Veikkaus has not been competitive for a while.
“They have lost around 40% of their gross gaming revenue in about five years. That is a very substantial decrease.”
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