Veikkaus holds 50% of online market in Finland as FY2022 group revenue dips 3%
State-owned operator posts downturns in land-based and sports betting arms as government gears up for legislative change
Veikkaus has revealed its share of the Finnish digital gambling market stood at just over 50% at the end to 2022, after confirming a 2.7% downturn in full-year 2022 GGR.
The monopoly operator recorded GGR of €1.07bn in 2022 compared to the €1.1bn the group posted in 2021 and that 50.3% – or around €538m – of the company’s GGR last year was derived from digital channels.
Operating income and financial profit remained flat year on year at €680.3m and €680m, respectively.
Breaking down revenue by vertical, Veikkaus saw a 16.9% decrease in sports betting revenue to €123.8m.
Veikkaus said the core reason for the decrease was due to the mandatory annual loss limits of €15,000 introduced for all customers in February 2022.
The operator did note that from June of last year it was possible for “professional gamblers” to apply for an exemption from the loss limits, which helped to stymie the losses from the vertical.
Elsewhere, revenue from the group’s Lotto game dipped by 7.9% to €149.8m, but its Eurojackpot product achieved an 18.9% increase to €151.1m.
The overall lottery segment experienced a slight 1.1% downturn in 2022 to €600m.
Veikkaus also highlighted a post-pandemic recovery in its land-based operations which saw slot machine revenue jump 15.1% to €164.6m. Total land-based operations returned €346.7m during 2022.
The group’s B2B arm, Fennica Gaming, registered turnover of €174,500 for 2022 as Veikkaus said the division was showing “promising initial results”.
Commenting on the results, CFO Regina Sippel highlighted some ongoing concerns for the operator.
Sippel said: “Consumer behaviour at the physical points of sale has not, however, returned to the same level as before the coronavirus pandemic, as can be seen in the figures for visits to Veikkaus gambling halls.
“In addition, the mandatory loss limits introduced in 2021 for slot machines have reduced the volume of slot machine gambling. The war in Ukraine and the resulting increase in consumer uncertainty and reduced purchasing power have also affected demand for Veikkaus games,” she added.
In January, the Finnish government established a new research group to examine the route to a multi-licensed commercial gambling market, which would bring an end to Veikkaus’ monopoly in the Nordic market.