Veikkaus avoids punishment for illegal IGT contract amendments

Finnish monopoly operator Veikkaus has been found guilty of breaking the law after it made undeclared changes to its contract with IGT in 2018.

Swedish media outlet YLE reported in January that Veikkaus made significant adjustments to its partnership with IGT, which had been in place since 2004, with the aim of developing a central gaming system.

In 2018, the group changed the concept, pricing and length of the agreement, which did not adhere to competition procurement regulations.

The Finnish Competition and Consumer Authority concluded, following its investigation into the matter, that Veikkaus failed to follow the law on procurement when extending its contract with IGT.

Veikkaus argued the changes to the agreement were necessary as there was a need to divide and renew the system “in a controlled manner”.

However, as it has been longer than six months since the pair amended the contract, the case cannot be taken to court.

According to the Public Procurement Act, investigative measures must be implemented within six months of the signing of any assumed illegal contract in order for it to be possible to impose sanctions, such as fines.

Speaking in January when the story emerged, then Veikkaus SVP of legal and CSR Pekka Ilmivalta admitted it was a risk to make changes to the contract.

He told YLE: “Now that it has been discovered, the risk has been realised. Someone may criticise that we may have acted against the procurement law and point the finger.”