Veikkaus plans to cease table game operations due to heavy competition from the online gambling sector
Finland’s state-owned gambling monopoly Veikkaus is considering the possibility to abandon its table game operations at restaurants around the country, local news outlets reported on Monday.
Veikkaus is the only betting and gaming entity authorized to operate gambling services in Finland. The state-run operator was formed through the merger of its predecessor with the Finnish Slot Machine Association (RAY) and Fintoto, a parimutuel betting group previously owned by the Finnish Trotting and Breeding Association.
Veikkaus currently operates 187 gaming tables located across 162 restaurants, bars, casinos, and other facilities. The operator said in a statement from yesterday that it plans to cease table game operations due to the growing competition from the digital gambling sector and the rapid shift of business onto various digital channels.
Olli Sarekoski, CEO of the state-run monopoly, said in a statement that their “network of sales locations has shrunk significantly” over the past several years and that they are planning overhauls of these locations as well as to cease table game operations.
Redundancy Talks
It also emerged yesterday that Veikkaus has begun redundancy talks involving more than 1,300 current employees. At present, the state-owned betting agency employs around 2,000 people. According to yesterday’s statement by the operator, it could lay off up to 400 of its employees by the end of the ongoing talks. Of those 400 people, about 200 will be from the Helsinki area, while the rest will be from around the country.
Gambling is a popular pastime in Finland. Veikkaus is currently authorized to operate various gaming and betting services around the country, but international companies have for years targeted Finnish players without holding a license from local regulators.
The government of the Scandinavian country has remained firm that the monopoly model was the best way to protect local gamblers from the risks betting and casino games involve. According to a 2017 survey by local news outlet Yle, 66% of the country’s residents actually supported the current regulatory regime.
On the other hand, it should be noted the unregulated online gambling space in the country has grown significantly, as online gambling companies have been luring customers with attractive alternatives to what Veikkaus has been offering.
Up until recently, the monopoly model was the status quo across Scandinavia. However, Denmark was the first country in the region to take a different course in the regulation of gambling and adopted in 2012 a new law that allowed international gambling companies to apply for licenses from the local regulator and operate in the country. Sweden re-organized its market this year to welcome some of the biggest players in the industry into its new, regulated online gambling space.
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