Enhanced problem gambling precautions come at a cost for Veikkaus
News on 30 Aug 2018
News on 30 Aug 2018
Veikkaus, a Finnish online and land gambling group comprising slots, lottery and racing and sports betting verticals, has posted its H1-2018 results, highlighting:
* Overall turnover down 0.3 percent year-on-year at Euro 1 587.2 million;
* Profit up 2.5 percent at Euro 505.5 million;
* 57.1 percent of turnover from land outlets and 42.9 percent generated by digital channels;
* Revenue up 1.8 percent at Euro 875 million;
* Sports betting turnover slipped 1.6 percent to Euro 281.4 million, despite the opporunities afforded by the 2018 FIFA World Cup;
* Retail betting turnover declined almost 10 percent;
* Digital betting improved 2.1 percent on a y-o-y basis;
* Veikkaus’ share of the Finnish overall gambling market was estimated at 89 percent. The market is currently worth Euro 981 million, up just under 2 percent y-o-y.
In his report, president and CEO Olli Sarekoski noted that competition for customers is toughest in the digital channels; therefore success in the digital operations of the business will be one of the cornerstones of the revised Veikkaus strategy.
He also commented on measures to guard against problem gambling, which have come at a cost for the group, saying: “According to our estimates, moving to comprehensive identification on
decentralised slot machines will reduce gaming proceeds, depending on the gaming restriction concept. The impacts of the different proposed implementation options on the gaming revenue would amount to Euro 78–170 million in the year 2021 according to our estimates.
“In addition to this, the lottery tax and our partners’ retailer commissions would be affected significantly. In order to minimise the negative impacts, it is of primary importance that we can rapidly adopt effective means of promoting identified gaming and secure our opportunities to develop gaming operations in the digital business.”
Sarekoski went on to reveal that the gaming restriction concept reduced the growth of the GGR in Veikkaus’ digital channel by ca. Euro 10–15 million during the first six months of the year.
