46 PUBLIC GAMING INTERNATIONAL • SEPTEMBER/OCTOBER 2025 look like when this “reform” project is completed at the end of this year? O. Sarekoski: The big picture is that Veikkaus has held the exclusive right, but that has existed only on paper. Latest estimates show that annual offshore gross gaming revenue might be between 600–900 million euros. There is a clear and widely recognize need to update our model, and existing legislative reform is based on the Government Program, which was published summer 2023. Parliament will accept a legislative proposal, most likely during this autumn. There is a clear need for all operators to receive, before actual operations begin, as the most transparent possible guidelines related to marketing, duty of care -model and many other operational details. This is a long process. What are the most relevant impacts of these changes on the way the Veikkaus operates in Finland? O. Sarekoski: Veikkaus existing game portfolio is already definitely comprehensive and thus quite unique. We offer all possible money games on both channels. As a result of the reform, we keep the monopoly for example in lottery-type games, scratch cards and physical slot machines while betting (including horse betting) and online casino moves into a license model. Veikkaus will naturally apply for a license to operate these license model games. The exclusive operations and operations in competitive markets will be separated into different companies within the same Veikkaus group. Under the new regulatory system, can commercial operators offer games that resemble the lottery game-playing experience? Lacking payment and IP blocking, do Finland consumers have access to “synthetic lotteries” like Lottoland? O. Sarekoski: It is important that there is and there will continue to be clear differences, which consumers recognized, between game categories. Soon-to-be licensed offerings can’t resemble the lottery playing experience. Product differences must remain. The current reform does not include any payment or IP blocking methods. Blocking is not proposed for adoption at this stage. So, at least in the near future, Finnish consumer will have access to these “synthetic lotteries”. The lack of blocking naturally challenges the government program, which has a goal of improving the channelization rate. Does this change to a multiple-operator competitive marketplace alter the fundamental mission or the methods of business operations, i.e., maximizing playership and revenues, etc. of Veikkaus? O. Sarekoski: The license model naturally means that there will be several, most likely a few dozen, legal operators. Veikkaus task is to match and exceed our consumers expectations – naturally, all this is done within the defined regulatory framework. From a competition perspective, the new reform creates, above all, a level playing field which we warmly welcome. Will there be a competitive equilibrium between Veikkaus and commercial operators, i.e., with neither having a decisive competitive advantage? For instance, will the amount that Veikkaus is required to turn over to the government be the same as the amount that licensed operators are taxed? Will advertising restrictions apply equally to all? O. Sarekoski: This might be one of the most monitored and supervised items: all operators in all aspects need to be treated equally. That is the basis, and we expect nothing else. Regarding operating income, our position remains unchanged and stands out: all Veikkaus’s proceeds benefit our society. It would seem that turning Finland’s online gambling regulatory framework into a competitive consumer marketplace—with multiple operators competing to increase gambling revenues—is more likely to increase demand, increase playership, and increase amounts gambled. Why does the Ministry of Finance think this will “reduce gambling-related harm”? O. Sarekoski: The current model, from a Finnish perspective, is clearly some short of” Wild West” where almost half of consumption, once again from a Finnish perspective, is unregulated and untaxed. When the overall channelization rate, like here in Finland, is only somewhere between 50–60%, it is clear that at least chance to successfully regulate is kind of a lost case. I firmly believe that a regulated environment is always a safer choice — something that is worth pursuing. So first, the vast majority of gaming consumption must be brought back under regulation so that, for example, work on preventing gambling problems can even succeed. Of course, having said all that, lacking payment and IP blocking will continue to challenge the upcoming reform. You have always been a visionary innovator, adapting to disruption to reposition Veikkaus to deliver ever more value to its players and stakeholders. How will Veikkaus be changing over the next two to three years to preserve its position of strength and sustainability? O. Sarekoski: Globally money gaming is a growth business – but digital gaming is still underdeveloped. I believe that to succeed, operators, including lotteries like Veikkaus, must reach sufficient size and seek growth from an extensive portfolio, partnerships and internationalization. Value is created when operators embrace scalable structure, technology, and operating models. Transformation must be seen as a continuous process; we have lived it already for several years and the journey continues. Now Veikkaus is facing a new and interesting chapter as Finland moves towards a license model. So our transformation journey keeps ongoing. This journey has already demanded and will continue to demand a lot from our skilled personnel. I am proud of the Veikkaus team’s remarkable ability to embrace the opportunity to change, innovate, and turn challenge into opportunity. n Veikkaus drives forward its strategic priorities while Finland restructures its gambling system — continued from page 14
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