Veikkaus is a national betting agency of Finland. It is managed by the Ministry of Education and regulated by the Finnish Ministry of Internal Affairs. Proceeds from the business are allocated to different social programs and charities by the Ministry of Education. These profits constitute over a million euros daily.
Veikkaus was established in 1940 but gained popularity in 1971 when it introduced the Finnish national lottery. About 70% of Finnish population say they have participated in the lottery. Veikkaus has said that at some point the lottery generated one third of the company’s profits. Recently, the trend has seen user demand switch to online services. Online web gambling or mobile gambling are attracting more and more customers worldwide. Veikkaus says that more than 40% of its revenue is generated from online services. In 2014, mobile services accounted for 15% of online sales, but the trend is increasing and the number should be a lot higher for today.
Online gambling includes various forms of entertainment, online casinos, slot machines, poker, sports betting and so on. It has seen growing popularity worldwide. As many countries have restrictions on online gambling, those without, including most countries in the European Union, have seen their customer base grow quickly. In 2015, size of the global online gambling market was almost 40 billion U.S. dollars and the number is projected to grow to 60 billion in the next two years. This is still less than half of the global gambling market, estimated to reach 140 billion U.S. dollars by 2019, but the presence of online casinos is increasing gradually and it is not surprising if we see online gambling as the main source of value for the industry.
Veikkaus recently announced its decision to cut over 100 jobs. A strategy the company said would help it establish a better online presence and be more competitive with the current online casinos. With national lottery still accounting for a big chunk of its profits, there is a room for the company to grow its online user base.