Veikkaus open to Finnish monopoly system being scrapped
Operator notes falling market share and rise of online competitors could bring an end to the current set-up
Veikkaus has said it would consider backing an end to the Finnish monopoly system as its market share continues to decrease to a “critical limit”.
The Finnish Lotteries Act is currently being reviewed by the Ministry of the Interior amid growing unease regarding non-licensed operators in the region.
A 2021 report from H2 Gambling Capital indicated there was a channelisation rate of just 51% in the market, compared to 88% in neighbouring Sweden.
Veikkaus CEO Olli Sarekoski told EGR that due to the changing nature of the market and the rise of competitors, a shift away from the monopoly model may be needed.
Sarekoski said: “Veikkaus operates on the present competitive digital market subject to different conditions than its competitors, which is making players choose other gambling companies to an increasing extent.
“As a result, the market share of the monopoly has fallen by five percentage points compared with the respective period last year, and it is nearing 50%, which is considered a critical limit.”
Sarekoski went on to argue that unless this slippage was addressed, measures would need to be taken to benefit not only Veikkaus, but the wider Finnish gambling industry.
He continued: “Unless this drastic downward trend can be stopped, we should start considering whether all gambling should be made subject to the same regulation in Finland.
“That could serve the prevention of the harmful effects of gambling as a whole, secure the company’s future, and thereby work to the benefit of the Finnish people,” he added.
Sarekoski’s clarification comes after Veikkaus deputy CEO Velipekka Nummikoski revealed to Finnish broadcaster Yle his concerns over the market.
Nummikoski said: “We formally have an exclusive rights system, but if we look at digital gaming, Veikkaus’ market share is only half. You can already ask if we really have an exclusive system anymore.
“We would certainly get a significant number of good operators to Finland.”
Earlier this year, Veikkaus posted a 12.7% downturn in EBITDA for full-year 2021 as the operator grappled with the impact of Covid-19.