Veikkaus revenue falls 4% as GGR lost to foreign operators

By Owain Flanders

Full-year 2019 gross gaming revenue (GGR) for Finnish monopoly operator Veikkaus was €1.69bn ($1.87bn), down 4% year-on-year, while profit was €1bn, a drop of 1%.

Lotto was the operator's best-performing segment, with revenue increasing 9% to €205.2m.

The operator attributed its decline in GGR mainly to a decrease in market share, which was 85%, down 1% year-on-year.

GGR lost to operators other than Veikkaus increased 9% from 2018, to €309m.

Regina Sippel, Veikkaus CFO, said: “The year 2019 was challenging to Veikkaus business-wise.

“The provision and marketing of foreign online games increased. This led to a decrease in our market share and a drop in gross gaming revenue.

“Under these circumstances, the profit we have made by focusing on cost-effectiveness can be considered good.”

Following a period of public scrutiny in regards to its responsible gambling commitments, during 2020 Veikkaus vowed to introduce mandatory identification for its slot machines and other games, significantly reduce the number of distributed slot machines and implement a new, more responsible marketing strategy.

According to surveys commissioned by the operator, the percentage of problem gamblers in Finland last year remained at 2018's total of 2.8%.

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