Veikkaus talks up open iGaming preperations in H1, despite losses

Veikkaus reported a year-on-year decline in revenue and net profit during the first half of 2025 after investing “significantly” in preparations for the upcoming liberalisation of the Finnish iGaming market.

Actual sales revenue in the six months to 30 June 2025 amounted to €466.4 million ($548.4 million), Veikkaus reported. This fell some 3.6% short of H1 last year but was in line with expectations for the period.

Total group GGR topped €463.9 million, falling 3.9% short of the previous year. Lottery games revenue was down 3.9% to €246.4 million. Slot machine and table games revenue also fell 4.3% to €71.3 million and iGaming revenue dipped 3.7% to €146.5 million.

However, revenue from its Fennica Gaming international subsidiary almost tripled year-on-year.

“Veikkaus performed during the first half of the year according to expectations,” President and CEO Olli Sarekoski said. “The long-standing decline in gross gaming revenue has been curbed compared to the end of 2024. Work in this area continues.

“The development projects from the first half of the year have progressed as planned and are expected to support gross gaming revenue in the second half. The improvement in cost efficiency has positively impacted the profit level.”

Veikkaus focused on preparations for open Finnish market

Sarekoski also referenced the group’s work in preparation for Finland opening its market to more operators. The country plans to launch its multi-licence, liberalised market in January 2027, marking the end of Veikkaus’s monopoly on iGaming.

Veikkaus, which has been in steady decline for some years, supports the change. Sarekoski said the group continues to work to ensure it is in a competitive position once the new-look market opens.

“Everything we do now is focused on being fully prepared for the opening of the market – and ready to succeed in the new environment,” Sarekoski said. “We want to continuously develop ourselves in the spirit of our new purpose of ‘we passionately drive better gaming’.

“We’ve the will to act with ambition and in accordance with our values, following the culture of doing the right thing, and creating a sustainable business and games. We are especially focused on strengthening our digital capabilities across the entire group to ensure we remain competitive in a changing landscape. Leveraging data and AI plays a key role in this transformation.”

Complete product overhaul for Veikkaus’ online arm

Veikkaus told iGB in July it was leaning heavily on a new and improved sportsbook and various other platforms, to obtain a top spot in the open iGaming market.

The overhaul of Viekkaus’ iGaming arm started in September 2023 when the business hired iGaming EVP Jarkko Nordlund. Nordlund brings extensive experience in entertainment industries with him, having spent time at MTV, Universal Music and Canal+.

As part of the transformation, the business has overhauled its product and back-end operations and has sought to hire talent with vast experience from private operators in Europe.

“Everyone is waiting for Veikkaus to fail,” Nordlund told iGB at the time. “The competition will be fierce when the market opens, so we must be very competitive. Our aim is to challenge the mentality of our current position, so we need to secure market leadership.”

Delayed Milli launch hits Veikkaus in H1

The launch of a new lottery game by Veikkaus during H1 forms part of its long-term strategy for success. Milli went live in June, with Sarekoski billing it as the most significant lottery game release since Eurojackpot.

“Milli has great potential and we have high expectations for its performance – it has already attracted international interest,” he said.

However, the tardy launch of Milli impacted financial performance in H1. This delay was due to regulatory approval coming into effect later than expected.

Veikkaus said it was also hit by lower jackpot levels, particularly in Eurojackpot, as well as changes in general consumer behaviour and a decrease in purchasing power.

Fennica Gaming revenue skyrockets in H1

Despite losses across online, lottery and land-based, Veikkaus-owned games developer Fennica Gaming saw revenue skyrocket 166.9% to €2.5 million in H1.

This followed Veikkaus’ game studio operations being transferred under the Fennica Gaming banner. The company also secured B2B gaming vendor licences for Ontario in Canada, Greece and the United Arab Emirates during the period.

“This integration allows us to better serve our international customers and accelerate game development,” Sarekoski said. “Veikkaus has world-class game development expertise which can now be more effectively leveraged to serve all our customers.”

Veikkaus faces H1 pre-tax profit declines

Spending-wise, costs across the operator were higher across materials and services, staff and other operating expenses, due in part to ongoing preparations for the new Finnish market. There were some savings on lottery tax and depreciation, amortisation and impairment, but operating profit fell 10.7% to €220.6 million.

Pre-tax profit was also 9% lower than last year at €229.6 million and, as Veikkaus did not pay tax in H1, the figures for bottom-line net profit were the same.

“To succeed in a competitive market, we must evolve in ways that support our long-term competitiveness,” Sarekoski said.

“This means not only developing our systems but also strengthening our competencies for operating in a competitive environment. We have further strengthened our expertise through new recruitments and by engaging partners to support the development of our digital competitiveness.”