Veikkaus Announces Major Restructuring Amidst Gambling Monopoly Shift

In a strategic move ahead of the impending end of its gambling monopoly in Finland, Veikkaus, the state-owned gambling operator, has confirmed a significant restructuring plan that includes job cuts and operational changes. 

Veikkaus Implements Sweeping Changes, Including Casino Tampere Closure

Veikkaus revealed that approximately 25% of its workforce, totaling 825 employees, will be affected by the restructuring. Heli Lallukka, Executive Vice President of Human Resources, stated that after the conclusion of staff consultations, about 185-215 employees will lose their jobs, and about 110-150 workers will experience material changes in employment terms.

The operator also announced the closure of Casino Tampere on December 9, just shy of two years since its opening. Veikkaus hinted at the closure already in September. Additionally, 19 other gaming arcades under Veikkaus, including well-known venues like Helsinki Redi, Turku Aurakatu, and Joensuu Siltakatu, are set to shut down on December 22.

As part of the broader restructuring, Veikkaus will divide its operations into three distinct units, each led by a senior vice president. Nora Vähävirta will oversee domestic games of chance, slot machines, and arcades. Jarkko Nordlund will head domestic online casino and betting operations, while Jonas Reuter, a recent hire from IGT and Scientific Games, will lead Veikkaus’ international business.

The exact dates for the employment changes will be determined by the end of the year, considering employees’ decisions on offered positions and potential internal transfers within the company.

Veikkaus Restructuring Yields Milder Layoffs Than Anticipated

The scale of the layoffs is less severe than initially anticipated. When restructuring talks began in September, Veikkaus had warned of the possibility of up to 240 job cuts, with an additional 195 employees facing changes in employment terms. However, after what Lallukka referred to as “constructive dialogue with personnel representatives,” the final figures were revised downward.

In response to the upcoming changes, Heli Lallukka highlighted the need for external expertise, stating: “In the future, we will also need know-how from outside the company.” 

She emphasized Veikkaus’ commitment to making significant investments to enhance competitiveness.

These changes come in line with the Finnish government’s goal to reduce the financial and social harms associated with gambling. The proposed new system will allow private companies to apply for licenses to operate sports betting and online casinos, while Veikkaus retains its monopoly for lotteries and retail slot machines. 

Back in April, a Finnish government study recommended reforming the country’s gambling monopoly system, citing concerns about the significant loss of revenue due to unlicensed gaming, which accounts for approximately 50% of all gambling activity.