Veikkaus Plans Job Cuts as Finland Prepares for Gambling Reforms

Finland’s state-owned gambling operator, Veikkaus, is set to implement significant job reductions as part of its restructuring strategy, anticipating a shift to a multi-license gambling system in 2024. On October 20, 2023, the company announced it expects to eliminate up to 31 positions while simultaneously creating between 22 and 28 new roles aimed at enhancing its competitiveness in the evolving market.

Approximately 20 to 30 employees are currently engaged in formal negotiations regarding these changes, which are expected to last for at least three weeks. The restructuring is designed to allow Veikkaus to concentrate on its core operations, preparing for a future where private operators can apply for gambling licenses in Finland.

According to Reija Laaksonen, Veikkaus’ director of communications and human resources, these organizational changes are crucial for the company to remain competitive. Laaksonen emphasized the importance of aligning any potential measures with the company’s strategic business needs and ensuring that the necessary competencies are in place. All actions taken will comply with applicable legislation.

Controversies Surrounding Advertising Practices

As Veikkaus moves forward with its restructuring, it is also facing increased scrutiny over its advertising practices. Recent reports from Finnish media indicate that Veikkaus has sponsored content on platforms such as Facebook and Instagram to promote its casino and poker services. This raises concerns about potential violations of Finland’s strict gambling advertising regulations.

According to the Lottery Act, the promotion of casino and slot machine games is limited to physical gaming venues. Despite this, Veikkaus’ marketing campaigns for 2025 included animated and video content that promoted Casino Helsinki and online poker events, appearing as sponsored posts in users’ social media feeds.

In response to these concerns, the National Police Board of Finland has launched an investigation to determine whether Veikkaus’ actions constitute illegal advertising. Johanna Syväterä, a senior inspector with the Board, stated that while sharing factual information about casinos is permitted, the line between informing and promoting can be very thin. She noted that the use of visually engaging or emotionally charged elements could transform informative content into promotional material.

Veikkaus has defended its practices, asserting compliance with Finnish law and indicating that it sought prior guidance from regulatory authorities regarding its advertising strategies. The company’s commitment to navigating the upcoming changes in the gambling landscape reflects both its challenges and its efforts to adapt to a more competitive environment.

As Veikkaus prepares for these significant transitions, the impact on its workforce and the scrutiny over its advertising will likely shape its strategies moving forward. The upcoming changes in the Finnish gambling market promise to alter the landscape for operators, presenting both opportunities and challenges for Veikkaus and its competitors alike.