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Veikkaus Reveals 2023 Financial Figures and Gross Gaming Revenue Drop

Veikkaus Reveals 2023 Financial Figures and Gross Gaming Revenue Drop

Posted on: Mar 14, 2024. Last Updated on: Mar 14, 2024.

Author: John Olanipekun Expertise: iGaming, Online casinos

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Finnish government-owned gambling company Veikkaus has released its full-year financial results for 2023. In the year, the operator recorded a gross gaming revenue of €1.03bn, down by 3.6% compared to 2022. Revenue from materials and services reached €130.3 million, while Veikkaus Oy, the parent company, recorded a profit of €585 million, a decrease of 14% year-on-year. The decline is attributed to a 42.4% higher lottery tax compared to 2022.

Digital sales accounted for 54.8% of total sales, up 4.5% year-on-year. Eurojackpot games contributed €151.1 million, which was steady with the previous year’s figures. Lotto games made up the remaining €136 million, down by 8.9%.

Veikkaus’ profits and performance in 2023 were as expected and we can be satisfied as a whole. The year was particularly successful for our online games and Veikkaus will continue to deepen its investments in its digital channel.

Regina SippelChief Financial Officer at Veikkaus

In the report, Veikkaus celebrated progress in ID verification, revealing that 90.6% of domestic gambling revenue is now from authenticated gambling. Additionally, the company reported an 8% increase in registered customers to 2.5 million.

The operator acknowledged that the ID rules will have an impact on revenue and has introduced mandatory identification for the purchase of scratchcards at the beginning of this year.

Today, all of our games, including all physical scratchcards, are subject to the identification requirement. This means that we have become a global pioneer in ensuring the responsibility of our gambling operations.

Susanna SaikkonenVice-President for Sustainability at Veikkaus

Finland to Open Market by 2026

Veikkaus is preparing to end its monopoly on gaming as Finland opens its gambling market to international operators by 2026. The company has shuttered Casino Tampere and several gaming arcades in response to these changes.

Before the market opening, Veikkaus will split into three separate units, undoing the 2017 merger of Veikkaus (betting), Raha-automaattiyhdistys (slots), and Fintoto (horse racing betting). Each unit will be headed by a senior vice president.

Nora Vähävirta, currently serving as the Chief Operating Officer of business operations, will lead the unit focused on domestic gaming, slot machines, and arcades. Jarkko Nordlund, appointed as an executive director at Veikkaus in September, will serve as Senior Vice President overseeing domestic online casino and betting operations.

Lastly, Jonas Reuter, who also joined the company in September, will assume the corresponding role for the international business unit.

For a long time, Veikkaus enjoyed a monopoly in the Finnish gambling market, with all profits allocated to significant socio-cultural initiatives like the arts, healthcare, and social programs, among others. While this has been an effective method to support the notable cases, online casino players have been left on the receiving end with limited options to choose from.

However, with the transition to the new market, several new companies can enter the scene and make the gambling market more varied, vibrant, and competitive.