Veikkaus confirms job cuts ahead of industry changes

Veikkaus, the gambling monopoly in Finland, has confirmed that it will axe a substantial part of its workforce as it prepares to embrace the regulatory changes pitched by the Finnish government that would introduce the market to a licensee-based model in which private operators will be allowed to run their product side-by-side with the state.

The expected competition, once opposed by Veikkaus and now endorsed by the operator, would mean that around 185-215 jobs will be lost. Further 110-150 workers will have their contracts changed as well, which could mean a reduction of hours or pay, although no official information has transpired about this.

One of the biggest confirmed changes, however, is the closure of Casino Tampere, which will come on December 9, 2023, and which has only been running for two years. Veikkaus will also shutter another 19 arcades, as the company prepares for the new licensing regime, which is still a very long way off.

It’s not all bad news. A silver lining here is that the hit to existing jobs has been less severe than originally expected as Veikkaus has had time to think through how to best prepare for the changing realities of the gambling market at home.

Based on the numbers provided by Veikkaus earlier this year, the job cuts would have been around 240, along with another 200 employees impacted by having their contracts reconsidered or altered in some way.

The lucky break in not impacting as many jobs comes from Veikkaus’ commitment to communicating with its employees, as confirmed by EVP of Human Resources, Heli Lallukka, who said that Veikkaus had been in contact with its staff, looking for ways to move forward in the best possible way.

The closing down of Casino Tampere was not anticipated but it makes financial and business sense as it’s the company’s newest property and not its most important. As to Finland, the government will definitely break up the existing monopoly controlled by Veikkaus as shifting to a licensee-based model would have a significant impact on market channelization.

The government hopes that by introducing more competition to the market, local players would stop playing offshore where the consumer protection measures in place are dearth at best. Channelization has been a serious problem for many jurisdictions, and Finland is not an exception.

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