Finland Considers Selling Veikkaus Before Online Gambling Licenses Launch

(AsiaGameHub) –   Finland is set to end Veikkaus’ monopoly over online casino and sports betting services on July 1, 2027. This licensing reform has turned state ownership of the firm into a pressing political and commercial issue.

Key Things to Note

• Per Jari Vähänen’s estimates, Veikkaus could carry a total valuation of up to €4.5 billion.
• The company’s online casino and sports betting division may be valued between €1 billion and €1.5 billion.
• Finnish political parties remain divided on whether to pursue a full sale, partial sale, or continued full state ownership of the firm.

Customer Base Could Be the Core Determinant of Actual Value

Potential buyers will not only assess the Veikkaus brand when evaluating a purchase. The company’s customer database may hold equal weight in valuation calculations.

Veikkaus has as many as 2.5 million long-standing existing customers. As the country shifts from a monopoly-controlled system to a licensed Finnish online gambling market, this customer list could give the operator a significant head start over private betting sites and online casino brands.

“If they cannot retain these customers through the transition, the value of Veikkaus’ licensed business will be far lower. But if they launch their new operations with 2.5 million customers intact, they will dominate the market,” Jari Vähänen told public broadcaster Yle last week.

Vähänen, a former senior executive at Veikkaus who now works as an industry consultant, also noted that foreign operators have made inquiries about the company.

“Several gaming firms have reached out to us to ask if Veikkaus might be put up for sale,” he told Yle.

His maximum valuation estimate for the firm hits €4.5 billion. This figure is calculated using a 10-times multiple on Veikkaus’ annual gaming surplus, which stands at roughly €450 million. He valued the digital gambling segment, which covers online casino and sports betting services, at €1 billion to €1.5 billion. Lotto and gaming machine operations are expected to make up around €3 billion of the total valuation.

However, Finland does not have an unlimited window of time to make a decision. Veikkaus’ returns have dropped by nearly half over the past five years, and lengthy delays could reduce buyer interest ahead of the launch of the licensed market.

Veikkaus has already split into two separate business units to prepare for the transition. One unit focuses on competing in the open online market, while the other retains control of the remaining monopoly operations. This restructuring gives Finland a more straightforward sale option, but it also makes related policy decisions more complex.

Some parties already see little justification for the state to remain involved in the gambling sector. SDP Party Secretary Mikkel Näkkäläjärvi said “the state has no specific strategic interest in owning a gaming company in this scenario”. Mika Lintilä of the Centre Party stated that Veikkaus was “no longer a strategically important company for the state in the same way as it was previously”.

Liike Nyt is pushing for full privatization and a public stock market listing for the firm. The Left Alliance opposes this approach, with MP Timo Furuholm defending Veikkaus as a reliable, proven source of government revenue.

Coalition parties have adopted a more cautious, gradual stance. The National Coalition Party is calling for a civil service review of the proposal’s market effects and social impact. The Swedish People’s Party has not issued a public position, as Minister Joakim Strand oversees ownership steering matters. The Finns Party and Christian Democrats have warned against using sale proceeds to fund recurring public spending, while keeping gambling harm prevention as a top priority.

For Vähänen, the ownership issue arises well before any potential sale takes place. Finland will be drafting regulations for the licensed gambling market while still owning the company that will have to compete under those same rules.

“State ownership of a gambling company operating in a competitive market is, at the very least, a questionable approach,” he wrote in a 2024 draft response to the initial liberalization framework.