The fate of Finland's state-owned gambling company Veikkaus is stirring intense debate in the political arena. As Finland will officially transition to a licensed market on July 1, 2027, Veikkaus will lose its exclusive rights to operate online casinos and sports betting—a state enterprise that has been pouring profits into public finances for decades is now facing the dilemma of being sold or retained. According to the PASA official website, industry consultant Jari Vähänen recently estimated that Veikkaus could be valued at up to 4.5 billion euros (approximately 5.24 billion US dollars), with several international gambling companies already expressing interest in acquiring it.
Political landscape split: The left opposes the sale, while the Social Democratic Party and the Centre Party support letting go
Recent surveys by Finnish national broadcaster Yle have revealed a fragmented political landscape. Within the opposition camp, Social Democratic Party (SDP) secretary Mikkel Näkkäläjärvi openly stated that "the state currently has no special strategic interest in owning a gambling company," and the decision to sell depends on whether the proceeds can be better used for economic or public benefits. Mika Lintilä of the Centre Party also believes that Veikkaus "is no longer a strategic enterprise for the state as it used to be." The populist party Liike Nyt, holding only one seat, advocates for full privatization and listing. The Left Alliance (Vänsterförbundet) is the only party openly opposing the sale, with MP Timo Furuholm emphasizing the reliability of Veikkaus as a source of fiscal revenue. The ruling coalition parties are more cautious—the National Coalition Party states that a comprehensive civil servant assessment must be completed first to examine market dynamics and social impacts; the Swedish People's Party refuses to comment due to conflicts of interest; the Finns Party and the Christian Democrats neither fully support nor oppose, but warn that one-time sale proceeds should not be used to cover recurrent government expenditures, and emphasize that preventing gambling harm remains a top priority.
Digital business valued at €15 billion, monopoly business €30 billion, 2.5 million customer database is the most valuable dowry
Former Veikkaus executive and industry consultant Vähänen told Yle that several international gambling companies have already inquired about purchasing Veikkaus. Based on an annual gambling surplus of about 450 million euros and a tenfold valuation, he arrived at an overall valuation of €4.5 billion: the online casino and sports betting digital business is valued at approximately €10 billion to €15 billion, while the remaining monopoly business of lotteries and gaming machines is valued at about €30 billion. However, Vähänen also warned that Veikkaus's financial returns could nearly halve within five years, and online gambling lawyer Antti Koivula pointed out as early as 2024 that Veikkaus's GGR had dropped by about 40%—the ongoing uncertainty before the licensing system takes effect could further erode its value. The biggest unknown is whether Veikkaus's 2.5 million customer database can be brought into the new market. Vähänen bluntly stated: "If these customers cannot be taken along, the value of Veikkaus's licensed business will be greatly discounted. But if they start with 2.5 million customers, they will dominate the market."
The government holds a reserved attitude, with the earliest possible sale not until 2030
In April, Maija Strandberg, director of the government ownership steering department, stated that a sale is unlikely in the near future, with a more realistic timeline being 2030. She emphasized three prerequisites: 1. Legislative amendments to allow the sale; 2. A sound corporate governance structure; 3. A favorable market environment. She also pointed out that Veikkaus's past profits cannot guarantee future attractiveness—it must prove its competitiveness in the upcoming licensed market. In preparation for the open market, Veikkaus has split into two major business segments, with the independently operated online business actively restructuring and completing a significant technical migration of the sports betting platform from DraftKings to OpenBet. Vähänen even publicly suggested that the government should divest early—he believes that the state being both a shareholder of Veikkaus and a new regulator poses a significant conflict of interest, "In a competitive market, the state owning a gambling company itself is a questionable arrangement."
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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