Veikkaus revenue drops 7.3% to $1.03 billion in 2024 ahead of market liberalization

Finnish gambling monopoly Veikkaus has reported a 7.3% year-on-year decline in sales revenue for 2024, dropping to €956.2 million ($1.03 billion). The group’s operating profit also fell 19.6% to €466.8 million ($504.2 million).

The decline in profit was attributed to “significant investments” and an increased lottery tax, which rose from 5% to 12% in 2024. The company paid €114.2 million ($123.3 million) in lottery tax to the Finnish state during the year.

Changes in regulations for ticket-based and scratchcard games also impacted gross gaming revenue as new certification requirements took effect in 2023 and 2024.

Digital gaming accounted for roughly 60% of Veikkaus’ gross gaming revenue, while the remaining 39.8% came from physical sales points. By the end of 2024, Veikkaus had expanded its registered customer base by 80,000 users, bringing the total to 2.6 million.

Veikkaus has seen its revenue decline over the past few years. Stakeholders point to growing competition from the grey market in Finland, with consumers becoming less loyal to the brand, especially in non-lottery categories.

Despite struggles in its core B2C business, Veikkaus’ B2B arm, Fennica Gaming, expanded into three new continents. The company provides online lottery and slots services in markets including the US, France, UK, and Sweden.

Sales in the B2B segment hit €3 million ($3.24 million) (up 181%), but losses increased 14% to €8.6 million ($9.29 million). By year-end, it had 14 corporate clients.

Still, Veikkaus remains optimistic as the country plans to open its online gambling market to private competitors in 2026 or early 2027. Under the new system, Veikkaus will receive a license to operate a competitive business arm, while maintaining exclusivity in retail slots and lottery operations.

“The reform of the gambling system is a great opportunity for Veikkaus and we have done long-term work to prepare for the future,” Veikkaus CFO Regina Sippel said in a statement accompanying the results.

“In 2024, as planned, we implemented the Veikkaus strategy and invested in both business development and international growth,” she added. “We want to continuously develop, driven by our new mission ‘We passionately drive better gaming.’”

Veikkaus has previously warned that up to 620 employees could face redundancy due to these reforms.

The company continues to battle offshore gambling operators. Using data from H2 Gambling Capital, Veikkaus estimated that Finnish players spent €550 million ($594.1 million) on illegal gambling in 2024.