Finland’s gambling operator Veikkaus has reported mixed results for the first half of 2025, with declining domestic performance contrasting with strong international growth. The company confirmed that its actual sales revenue for January–June reached €466.4 million, reflecting a 3.6% year-on-year drop compared with €484 million in the same period of 2024. Operating profit decreased by 10.6% to €220.6 million, while profit stood at €229.6 million, marking a 9% fall.

Domestic Pressures Challenge Performance

The slowdown was tied to several issues. The launch of the Milli lottery game, originally slated earlier in the year, was postponed due to regulatory approval delays. Eurojackpot prize levels were also lower than in the previous year, reducing lottery turnover. At the same time, shifts in consumer behavior and a decline in disposable income weighed on gambling spend across the market.

Data shows that Finland’s total gross gaming revenue (GGR) for the first half of 2025 amounted to €970 million, a 0.7% contraction from 2024. Veikkaus’ overall market share slipped to approximately 48%, down two points year on year. The iGaming sector reached €790 million in value, with Veikkaus holding a 36% share, a slight drop from the previous year.

Veikkaus’ reporting divides its operations into “Lottery and Land-Based Gaming” and “Betting and iCasino.” Lottery and land-based GGR was recorded at €318 million, a decrease from €331 million a year earlier. Within that, lottery-specific GGR fell to €246 million, down from €256 million. Slot machines and table games generated €71.3 million, a reduction attributed to the company’s decision to scale back its machine footprint while prioritizing digital operations.

The betting and iCasino segment produced €146 million, a small decline from €152 million the year before. Betting activity was hit by “weak gross gaming margin development” in horse racing and a quieter summer of international football. However, digital casino titles launched in-house performed strongly, helping to offset some of these betting losses. Altogether, lottery and land-based games contributed 68.8% of gambling revenue in Finland, with betting and iCasino accounting for 31.2%.

Despite reduced profits, Veikkaus paid €55.3 million in lottery tax during the period, €2.4 million less than in 2024. The parent company’s gross gaming revenue came to €463.9 million, with an operating profit of €242.7 million and financial profit of €250.5 million.

International Expansion Gains Traction

While the domestic business faced headwinds, Veikkaus’ subsidiary Fennica Gaming delivered striking growth. Comparable revenue almost tripled in the first six months of 2025 compared with the prior year. This surge was supported by the transfer of Veikkaus’ game studio operations under Fennica Gaming and the acquisition of B2B gaming vendor licenses in Ontario, Greece, and the United Arab Emirates.

Fennica Gaming now operates on three continents, signaling the group’s broader ambition ahead of Finland’s shift to a partial multi-license system scheduled for 2027. “The beginning of the year has been very promising for our international business subsidiary, Fennica Gaming,” said CFO Regina Sippel in the operator’s press release.

Veikkaus is using this period to prepare for the regulatory transition, strengthening its digital offering and customer experience. Sippel explained: “During the first half of the year, we have implemented Veikkaus’ strategy as planned and invested in the development of both domestic business and international growth. The reform of the gambling system is a great opportunity for Veikkaus. During 2025, we have continued our determined work to ensure that we are ready when the licensing system is launched. Investments in digital competitiveness and customer experience have been at the core of our development.”

Interestingly, player registrations continued to rise even as revenues dipped. By the end of June, Veikkaus counted 2,625,000 registered customers, an increase of 25,000 from the beginning of the year. All Veikkaus games have required authentication since January 2024, a measure intended to reinforce player protection and responsible gambling.

Analysts suggest that although the monopoly’s market share is declining, the industry is entering a transitional phase. Once competition opens in 2027, the Finnish market is projected to rebound rapidly, potentially surpassing €2 billion in annual value within a few years. Alongside increased tax revenue, regulators are expected to place stronger emphasis on oversight and consumer protection in the restructured framework.