The historic state gaming monopoly in Finland has its days numbered.
With the imminent liberalization of the betting sector scheduled for next year, government authorities have begun to seriously analyze the sale of Veikkaus to the private sector.
The company, which has been operating since 1940, has enormous brand recognition.
Due to this strong presence, experts indicate that the company’s market valuation could reach billions of euros, attracting the attention of investors.
What is the stipulated value for the sale of Veikkaus
Currently, the operator controls casino games and sports betting, directing its profits to public projects.
To adapt to the new reality, the group split into two independent fronts.
One entity will be responsible for lotteries, while the other will manage the sports and casino verticals.
Estimates indicate that the total value of the brand could be around 4.5 billion euros, a calculation based on ten times the surplus from operations.
Of this amount, the lottery division represents around 3 billion euros.
The casino and sports-focused arm, which will attract the most commercial interest, is valued at between 1 billion and 1.5 billion euros.
Political debates and next steps
Despite the numbers, transferring control from the state-owned company to an outsourced company is a subject that generates controversy on the local scene.
The political debate is quite divided. On the one hand, some parliamentarians argue that the State should not have a stake in the ownership of a gaming organization.
On the other hand, there are those who emphasize the importance of maintaining the company as a secure source of income.
At this moment, the commercialization idea is still in an early stage of discussions.
For the transaction to move forward, a strong political motivation will be needed to resolve the company’s commercial issues in the coming months.
