Veikkaus in 2024: Preparing for a change in the gambling system and investing in digital and international business
2024 was a significant year of development work for Veikkaus as it was preparing for the money Gaming market, which will partially open in 2027. During the year, Veikkaus made major investments in the development of digital Gaming and international business, doubling its investment in business development compared to the previous year. Fennica Gaming, Veikkaus' international business-to-business subsidiary, also had a promising year, with the company enjoying growth in its turnover. Veikkaus' domestic business year was challenging, but the number of customers remained at a good level.
Veikkaus in 2024:
• Veikkaus Group's actual sales revenue in 2024 totaled EUR 959.1 million (-7.2% compared to 2023). The actual sales revenue includes both the Gross Gaming revenue from gambling activities and turnover from other business activities.
• Veikkaus Group's operating profit was EUR 461.6 million (-19.5%) and its profit for the financial year was EUR 471.5 million (-18.5%). The result was influenced by significant investments in the Group's future and an increase in the Lottery tax. The Lottery tax paid to the state on the Gross Gaming revenue of parent company Veikkaus Oy is back to the 12% specified in the Lotteries Act, making it 7 percentage points higher than in the previous year. The company paid EUR 114.2 million in Lottery tax, which is EUR 62.6 million more than at the same time the previous year.
• Parent company Veikkaus Oy's Gaming revenue for the fiscal year, or Gross Gaming revenue , was EUR 956.2 million (-7.3%).
• Parent company Veikkaus Oy's operating profit for 2024 was EUR 466.8 million (-19.6%) and its profit for the financial year was EUR 475.9 (-18.3%). From the beginning of 2024, Veikkaus Oy's result will be entered in the state budget without specified use.
• For fiscal year 2024, the total Returns to the State of Finland, including profit for the fiscal year, profits recorded for previous fiscal years as a result of the FAS transition, and Lottery tax totaled EUR 591.9 million (-7.0%).
• 60.2% of Veikkaus' Gross Gaming revenue came from the digital channel (+5.4 percentage points) and 39.8% from physical points of sale.
• At the end of 2024, Veikkaus had approximately 2,600,000 registered customers. The number of registered customers increased by approximately 80,000 during the year.
2024 was the first full year when all Veikkaus games required authentication, which affected the development of Veikkaus Oy's Gross Gaming revenue. The decrease was particularly affected by the authentication requirement for ticket-based games implemented in spring 2023 and the authentication requirement of scratchcards that entered into force at the beginning of 2024. In addition, the Gross Gaming revenue of physical slot machines decreased due to changes in point-of-sale networks. General changes in consumer behavior and decreases in purchasing power also had an impact on Veikkaus' business. In addition, the launches of several new games were delayed due to slower than expected progress in official permit processes.
Money Gaming is shifting strongly towards the digital channel, where Veikkaus is competing against offshore operators that currently operate in Finland without authorization. In 2024, according to an estimate by H2 Gambling Capital, the domestic expenditure on games provided by operators other than Veikkaus will exceed EUR 550 million. During the year under review, Veikkaus accounted for approximately half of the total digital money Gaming market in Finland.
Veikkaus has done a lot of development work in preparing for the upcoming change in the gambling system.
– The reform of the gambling system is a great opportunity for Veikkaus, and we have done long-term work to prepare for the future. In 2024, as planned, we implemented the Veikkaus strategy and invested in both business development and international growth. We want to continuously develop, driven by our new mission 'We passionately drive better gaming', explains Veikkaus CFO Regina Sippel .
Promising year for Fennica Gaming
Fennica Gaming, Veikkaus' international business-to-business subsidiary, also had a promising year, with the company enjoying growth in its turnover. By the end of the year, the company had 14 corporate customers on three different continents.
In 2024, Fennica Gaming delivered online scratchcards to the world's largest markets in France and the state of Virginia in the United States. The company's product range expanded and the customer feedback received during the year was also positive.
– Our subsidiary Fennica Gaming achieved significant results during the year, which also bodes well for the future, says Sippel.
Authenticated Gaming to help prevent Harms caused by gambling
2024 was the first year when all Veikkaus games required authentication, including scratchcards from the beginning of January 2024. At the same time, it became possible to, for example, impose a gambling ban on all Veikkaus games.
The data obtained through authenticated Gaming activities can also be used to prevent and reduce the Harms caused by gambling. Data is used to intervene in risk gambling by means of care communications and care calls.
– Using the data, we can analyze our players' gambling habits and identify the signs of high-risk gambling. Veikkaus launched its care calls in 2022, making two thousand calls. Thanks to the positive experiences with this, the number of calls was increased, and in 2024, more than 6,000 calls were made. The reception of and feedback on care calls has been very good. The aim of the calls is to inform people of the tools and guide them to use services that help manage gambling, says Susanna Saikkonen , Vice President for Sustainability at Veikkaus.
In addition to care calls, Veikkaus also provides other care communications to its customers.
– Communications and care calls are used to encourage players to take for example a gambling test, check loss limits, set gambling bans or refer the player to help, if necessary. Our goal is to offer our customers the safest possible Gaming environment, says Saikkonen.
More information on Veikkaus' website:
• Annual report, Sustainability report and financial statement for 2024 (in Finnish, the English version of the report will be published later)
• Corporate governance review for 2024 (in Finnish)
• Institutional and staff remuneration report for 2024 (in Finnish)
• Veikkaus remuneration policy for 2025 (in Finnish)
• Marketing communication costs in 2024 (in Finnish)
Further information: CFO Regina Sippel and Susanna Saikkonen, Vice President, Sustainability. Contacts via the Veikkaus media service, tel. +358 (0)9 4370 7000.
https://www.veikkaus.fi/fi/yritys#!/article/tiedotteet/yritys/2024/veikkaus-in-2024_preparing-for-a-change-in-the-gambling-system-and-investing-in-digital-and-international-business