Veikkaus fate debated with potential valuation of €4.5 billion

The Finnish state-owned company could be valued in the billions following the transition to a licensed market regime on 1 July 2027. It has sparked renewed debate over the potential partial or full sale of Veikkaus. 

Veikkaus, which has for decades channelled profits into public coffers, will lose its exclusive rights to online casino games and sports betting under the new licensing system. This has prompted political parties and industry observers to reconsider its future ownership and role.

The company has split into two businesses to prepare for the upcoming liberalisation, with the seperately operated online business actively restructing to ensure it can compete against other private operators that will flood the licensed market.

Political divisions over Veikkaus’s fate

A recent survey by the Finnish national broadcaster broadcaster Yle, highlighted a fragmented political outlook regarding the sale of Veikkaus, as opposition parties such as the Social Democratic Party (SDP) and the Centre Party expressed interest in selling Veikkaus. 

SDP Party Secretary Mikkel Näkkäläjärvi remarked that “the state has in this situation no particular strategic interest in owning a gaming company”, emphasising that any sale decision would largely depend on whether the proceeds could be better used for economic or public benefit.

Similarly, Mika Lintilä of the Centre Party suggested that Veikkaus was “no longer a strategic company for the state in the same way as before”.

Populist Liike Nyt, holding one parliamentary seat, advocated for the full privatisation of Veikkaus and a listing on the stock market.

Conversely, the Left Alliance (Vänsterförbundet) stood alone in opposing any sale, with MP Timo Furuholm underscoring Veikkaus’ proven reliability as a revenue source.

Government coalition parties exhibited greater caution however. The National Coalition Party (Samlingspartiet) refrained from taking a firm stance, noting the need for a comprehensive civil-service review assessing market dynamics and societal impact.

The Swedish People’s Party (SFP), with Minister Joakim Strand overseeing ownership steering, declined to comment to avoid conflict of interest. The Finns Party and Christian Democrats neither fully supported nor opposed divestment but warned against using a one-time sale to cover recurring government spending and reiterate that gambling harm prevention remained paramount.

Veikkaus could be valued at €4.5 billion

Speaking to Yle on 22 May, industry consultant Jari Vähänen, formerly a senior executive a Veikkaus, confirmed active commercial interest in a potential sale from foreign operators.

“A couple of gaming companies have contacted us and wondered whether Veikkaus might be for sale,” he told Yle.

Vähänen estimated the entire business could valued at up to €4.5 billion ($5.24 billion). This was based on a 10x multiple of Veikkaus’ annual gaming surplus of €450 million (US$523 million).

He estimates that digital verticals, including online casino and sports betting, could be worth €1 billion-€1.5 billion.

Meanwhile the remaning monopoly business, including Lotto and gaming machines, could be valued at about €3 billion.

Vähänen cautioned that Veikkaus’ financial returns had nearly halved over five years and that prolonged uncertainty surrounding the business could further erode its value once licensing takes effect.

He has been previously vocal about the business’ potential use of its legacy player database, which includes up to 2.5 million customers.

“If they can’t bring those customers with them, the value of Veikkaus’ licensed business will be much lower. But if they start operations with 2.5 million customers, they will dominate the market,” he told the broadcaster last week.

Multiple stakeholders have highlighted that the competitive licenced market will reshape Veikkaus’ income stream, requiring evaluation of both longer-term fiscal implications and public health safeguards before proceeding with privatisation.

Vähänen has publicly advised the government to sell off its interest. He said its role in forming new regulations as a Veikkaus shareholder is a major conflict of interest. “State ownership of a gambling company operating in a competitive market is at least a questionable solution,” he wrote in his draft response to the initial liberalisation framework, back in 2024.

Veikkaus online arm prepares for competition

In an interview with iGB in March 2025, EVP of casino and sports betting at Veikkaus Jarkko Nordlund said Veikkaus was working hard to ensure it secured a prime position in the open online market.

To prove itself in its home market the company initiated a major technology and product overhaul a number of years ago. This included switching its sportsbook platform from DraftKings to OpenBet.

In April Maija Strandberg, director at the Government Ownership Steering Department, indicated that a sale in the near term was unlikely, pointing instead to 2030 as a more probable timeline. Strandberg emphasised three essential preconditions – legislative changes enabling sale, sound corporate governance, and a conducive market environment. 

She also stressed that past profits from Veikkaus did not guarantee future attractiveness; the company must prove competitiveness in the forthcoming licensed market.

A steady decline

Despite the monopoly soon ending, Veikkaus has experienced a continued decline in its revenue over the past couple of years. Speaking to iGB in 2024, Antti Koivula, in his previous role as a gaming lawyer in Finland, noted that “Veikkaus hasn’t been competitive [for some time].

“They’ve lost something like 40% of their gross gaming revenue just in the matter of roughly five years. That’s quite significant.”

Kathryn Evans

Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.