Following Veikkaus’ H1 2024 financial results report, questions have been asked within the industry about its revenue and profit falls, especially off the back of the introduction of ID checks.
Antti Koivula, Legal Advisor with Legal Gaming Attorneys at Law, gave his opinion on Gambling Insider yesterday.
This time, we spoke with Veikkaus CFO Regina Sippel.
You introduced ID checks across your games earlier this year. Initially, what was the thought process behind introducing these checks?
The purpose of the identification requirement is to prevent gambling harm, prevent underage gambling and improve the prevention of money laundering. When all gaming is behind identification, the player can better monitor and control their own gambling.
To what extent do you feel you have been successful in this?
Now all Veikkaus customers have access to comprehensive gaming management tools, such as loss limits, the possibility to exclude different game categories and money transfer limits. We can also better monitor players' risk behaviour and intervene in possible risk behaviour. Players and retailers have adopted the identification practices well, and we strive to improve our player and retailer experience further.
In your H1 report, a 21% decline in physical point of sales GGR was in part explained by these ID checks. Why have the checks had this effect?
Some customers have not wanted to continue playing after the introduction of the identification requirement. Identification and mandatory gaming management tools for customers, such as loss limits, have also reduced the gambling of those who play a lot.
Your VP of Lottery Operations, Ville Venojärvi, spoke with Gambling Insider on the Huddle seven months ago and said the ID checks had ‘no drastic impact’ on wagering levels. Why has this changed? Is it because you now have a larger set of data?
We now have data over a longer period of time. It is also to be noted that the 21% decline in GGR refers to the physical point of sales. Our digital channels are growing, and hence, the overall impact on GGR is noticeably lower than 21%. The overall impact varies game by game; for example, our biggest lottery, Eurojackpot, has experienced little to no impact.
The purpose of the identification requirement is to prevent gambling harm, prevent underage gambling and improve the prevention of money laundering - Veikkaus CFO Regina Sippel
Could any other factors have affected this decline?
The general economic situation and the decline in consumers' purchasing power have also contributed to the decline in GGR.
Despite profits being down, your number of customers has increased. Do ID checks mean that players spend less, or is there another explanation?
The number of our customers is still at a high level, but the amounts of money spent by our customers are, on average, lower than before.
How does Veikkaus intend to tackle these declining profits going into H2 and next year?
We strive to improve the customer experience by developing our games and services. We continue to invest especially in the development of Veikkaus' digital channels.
