Finland’s monopoly gambling operator Veikkaus said a promising outlook for its Fennica Gaming subsidiary has softened the impact of changes in the land-based sector over the first half of the year.
The mandatory identification of physical channel coupon games implemented in the spring of 2023 decreased the gambling margin by 21 per cent, while the decrease was 44 per cent for the mandatory identification of scratch cards that entered into force at the start of 2024.
However, the number of customers has increased and the share of digital channels in the gambling margin has risen to 60.5 per cent, Veikkaus said, up by 6.6 percentage points.
Veikkaus Group’s income for H1 fell 6.8 per cent to €483.8m, while operating profit fell 19.1 per cent to €252.3m.
Operating profit was “significantly affected” by an increase in the lottery tax, with Veikkaus paying €31.7m more than the prior-year period.
Parent company Veikkaus Oy’s operating profit was €250.2m, down 20.1 per cent.
Overall, Veikkaus’ contributions to the state fell 8.1 per cent year-on-year to €313.2m for the period between January and June.
Veikkaus’ registered customers climbed by around 15,000 year-on-year.
Veikkaus said Fennica Gaming now has 15 signed contracts in the gaming industry, including agreements signed in Brazil, France and Virginia, USA, in the latest period.
“During the beginning of the year, we implemented Veikkaus' strategy as planned and invested in both business development and international growth. Fennica Gaming has achieved significant results during the beginning of the year, and this bodes well for the future as well,” said Regina Sippel, chief financial officer of Veikkaus.
Sippel added that the multi-licensing system for online gaming, which will come into force in 2027, is a “great opportunity” for the company.
Veikkaus will “continue to invest in developing our business and providing the best customer experience in the industry,” Sippel said.
