Veikkaus, the Finnish state-owned gaming company, reported a notable dip in its revenue and net profit for the first half of 2025, aligned with its strategic investments aimed at preparing for the liberalisation of Finland’s iGaming market. The company disclosed that during the six-month period ending June 30, 2025, its sales revenue reached €466.4 million, representing a 3.6% decline from the same period the previous year. Despite the decrease, these figures met the company’s expectations.
The total group gross gaming revenue (GGR) was recorded at €463.9 million, showing a 3.9% reduction compared to last year. This decrease was reflected across different segments; lottery games revenue fell by 3.9% to €246.4 million, slot machine and table games revenue declined by 4.3% to €71.3 million, and iGaming revenue saw a 3.7% drop to €146.5 million. In contrast, the revenue from Veikkaus’s international subsidiary, Fennica Gaming, surged, nearly tripling year-on-year.
In response to these figures, Olli Sarekoski, President and CEO of Veikkaus, stated, “Veikkaus performed during the first half of the year according to expectations. The long-standing decline in gross gaming revenue has been curbed compared to the end of 2024. Work in this area continues.” He further noted that the development projects initiated in the first half are on track and are anticipated to bolster gross gaming revenue in the latter half of the year. An improvement in cost efficiency has also positively impacted the company’s profit levels.
The company is heavily focused on gearing up for the open Finnish market, which is set to commence in January 2027, ending Veikkaus’s monopoly on iGaming. Sarekoski emphasized the importance of these preparations, saying, “Everything we do now is focused on being fully prepared for the opening of the market – and ready to succeed in the new environment.”
Veikkaus is investing in its digital capabilities, seeking to develop a sustainable business model. The company is heavily relying on leveraging data and technological advancements to transform its operations. Sarekoski mentioned, “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.”
Part of this transformation involves a comprehensive overhaul of Veikkaus’s iGaming arm, which began in September 2023 under the leadership of iGaming EVP Jarkko Nordlund. With a robust background in the entertainment industry, Nordlund is steering efforts to revamp the product and backend operations while recruiting talent with vast experience from private operators across Europe. “Everyone is waiting for Veikkaus to fail,” Nordlund had remarked, acknowledging the fierce competition expected once the market opens.
During the first half, Veikkaus launched its new lottery game, Milli, as part of its long-term growth strategy. Though launched in June, the game was expected to be a significant contributor to the revenue, but its impact was somewhat dampened by a delayed regulatory approval. Sarekoski described Milli as the most significant release since Eurojackpot, noting its potential and the international interest it has already attracted.
Despite setbacks in lottery, online, and land-based sectors, Veikkaus experienced substantial growth in its games developer arm, Fennica Gaming. The entity reported a 166.9% increase in revenue to €2.5 million in H1. This growth was facilitated by the transfer of Veikkaus’ game studio operations under the Fennica banner and securing B2B gaming vendor licenses in Ontario, Greece, and the UAE.
Operationally, Veikkaus’s costs rose during the first half due to preparations for the new market, with increased expenses in materials, services, and staffing. Despite some savings in lottery tax and depreciation, the operating profit fell by 10.7% to €220.6 million. Pre-tax profit dropped by 9% to €229.6 million, with net profit figures remaining unchanged since no tax was paid during this period. “To succeed in a competitive market, we must evolve in ways that support our long-term competitiveness,” Sarekoski commented, highlighting the ongoing efforts to enhance the company’s competencies and digital competitiveness.
While Veikkaus remains optimistic about its strategic direction and transformation, industry analysts point to potential challenges. The opening up of Finland’s market may attract more international players, intensifying competition. However, the company is confident that its continuous focus on innovation and strategic partnerships will position it favorably in the evolving landscape. Sarekoski’s vision for Veikkaus is clear: to lead with ambition and adaptability as the market dynamics shift.
4.6/5
