The Finnish state-owned operator, Veikkaus, has revealed plans to reduce its workforce and shut down gaming venues as part of its preparations for the termination of the nation’s gambling monopoly.
Veikkaus has cautioned that staff reductions will be essential before the end of the gambling monopoly. The Finnish government intends to abolish Veikkaus’s gambling monopoly by 2026, aiming to boost Finland’s channeling rate, which is currently low compared to similar nations.
The new system will permit private businesses to apply for licenses to operate sports betting and online casinos. Veikkaus will retain its exclusive rights to lotteries and retail slot machines.
The proposal also suggests dividing Veikkaus into separate companies within the same group, reversing the 2017 merger of gambling brand Veikkaus, slot machine business Raha-automaattiyhdistys, and horse racing betting operator Fintoto.
Veikkaus has already begun making preparations for the end of its monopoly in certain areas, including changes to its organizational structure. Further discussions will take place this month.
Veikkaus intends to close gaming halls. While the plans are still in their initial stages, Veikkaus has warned that the restructuring could result in the loss of roughly 240 jobs, with another 195 employees potentially facing “substantial” changes to their employment terms.
The company also intends to decrease the quantity of gaming locations from sixty-five to between forty and fifty. Furthermore, discussions are ongoing to shut down its Tampere gambling establishment.
“Getting ready for the transformation and globalization of the gaming business is a vital part of Veikkaus’ expansion strategy,” stated Veikkaus CEO Olli Sarekoski. “We are constructing a future where Veikkaus will be the most prosperous gaming enterprise in Finland and a major participant in the global marketplace.
“We aim to be competitive in the forthcoming licensed market and play a significant role in the monopoly market. That’s why we need to make adjustments that impact the entire company’s operations.
“This signifies numerous parallel modifications. We are examining the entire organization from the perspective of profitability and growth. We also have to make tough choices. For some, these changes may mean the termination of their employment. We care about them and will provide support.”
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