Veikkaus launches sports betting tender following €50m Playtech live casino deal
Finnish monopoly operator looking for new partner as it eyes €10m incremental increase in sportsbook GGR
Veikkaus has launched a tender for its new sports betting partner after handing Playtech a €50m live casino supply contract.
The Finnish monopoly operator is looking for a replacement for outgoing partner SBTech, which has been supplying the firm’s sports betting tech since penning a four-year deal in 2019.
Veikkaus has opened the tender, and according to documents seen by EGR, is looking to implement the new supplier in October on another four-year term.
In a two-stage process, Veikkaus will first evaluate tender offers received in the first round.
The operator has said the second round will involve at least five and potentially all of the candidates, should the firms meet the eligibility requirements.
In the second round, potential partners have until 13 September to submit full proposals.
From there, Veikkaus will compare the suppliers against quality of offering and pricing, with a 70:30 weighting in favour of the former.
In terms of quality of offering, there will be 70 evaluation points available.
For pricing, a supplier will be awarded a score between 0 and 20 based on its proposed revenue share percentage. A further 10 points are available based on comparison against rivals for overall pricing package.
Veikkaus said the supplier with the highest number of evaluation points would be selected as the operator’s new partner.
Veikkaus is looking for the new supplier to increase its sports betting gross gaming revenue (GGR) by around €10m per year.
The group posted sports betting GGR of €325m in 2022.
Veikkaus said that to reach the target, the successful supplier would be required to launch new features such as cashout, bet builders and an increase in markets to take its offering to the “next level”.
At a larger scale, Veikkaus is looking for the supplier to plug-in its Managed Trading Services (MTS), secondary data feeds and sports betting platform, although Veikkaus said its current in-house team of traders and specialists would be retained following the initiation of the new contract.
Veikkaus said: “The goal is that Veikkaus can run a competitive sportsbook by optimally utilising various feeds and complementing it with in-house odds generated either by Veikkaus or the supplier’s MTS team.”
The move for a new sports betting partner comes after Veikkaus confirmed its new live casino supply partnership with Playtech.
Under the remit of the agreement, Playtech will supply Veikkaus with its full live casino suite, including games, associated gaming platform(s), a backend system and related tools, hardware and software.