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Finland may be preparing to file an IPO of its state-owned gaming operator, Veikkaus Oy. Following extensive reforms that will transform Veikkaus into a regulated, competitive market by 2027 by ending its monopoly over online betting and casino games, the state operator is able to engage in a rewarding sale, likely on Nasdaq Helsinki. In Finland, the government plans to end exclusive rights for the state-owned Veikkaus Oy to offer online betting and casino games.
Gambling Industry Eyes 2027 Reform with Anticipated Veikkaus Listing
As part of its reform, Veikkaus will maintain its monopoly position in lotteries, scratch cards, and renew and enhance its position in the land-based gaming market, but will incorporate a progressive reform to offer operators the ability to enter the online betting and casino market under a competitive licensing model. It is expected that the state will first provide competitive licensing in early 2026, with a full multi-licensing competitive marketplace in 2027.
Finnish authorities are adamant that they are taking steps to previously separate the Veikkaus properties, including: lottery, sports betting, and online betting unit within Veikkaus being distinct operational lines, reported in a format that reflects transparency and profitability in an open market.
Investors should view the potential IPO of Veikkaus with both optimism and caution. Veikkaus’ annual gross gaming revenue of about €1.07 billion and EBIT margin prospects near 20% could suggest a post-privatization market cap of approximately €2.5 to €3.5 billion, depending on how well Veikkaus finds its competitive footing as a regulated organization amidst new advertising restrictions and a proposed ban on the ability for affiliates to promote its products.
Both the Finnish government’s participants in the ownership dialogue, including Director General of Ownership Steering Maija Strandberg, have noted an inquiry into listing Veikkaus with a group of state-owned enterprises that have considered an IPO. While they do not have a formal plan to pursue, presently, holding to statutory limits in the law, the continued dialogue on gambling reform is expected to help pursue an IPO by establishing the legal avenues after 2027, similar to the developments in the gambling market as seen in Sweden and Denmark.
The market reform also aims to curb the substantial share of Finnish online gambling currently lost to offshore operators—estimated at around 50%—by increasing channelization to regulated providers and strengthening consumer protections. Overall, Finland’s move represents one of Europe’s most significant gambling policy shifts in recent years, balancing state revenue goals, market competition, and social responsibility within a newly liberalized framework.
Finland’s Gambling Market Transformation
We anticipate a conclusion to the Veikkaus monopoly on online betting, slots, and casino games by January 2027, along with a multi-license model allowing private operators to enter the market. Veikkaus will retain monopolistic rights to lotteries, scratch cards, and land-based casinos, but online gambling will be open to competition. The reform implements a shift towards limiting gambling-related harm and increasing consumer channelization to legal consumer options, after previous behavior saw consumers lose substantial amounts to offshore betting sites. A new supervisory authority is being established to oversee licensing, marketing, and consumer protection.
Implications of Veikkaus IPO
The initial public offering (“IPO”) will turn Veikkaus into a publicly traded company, subjecting it to increasing investor scrutiny and market discipline. Current estimated valuations will yield strong financial returns, and competition will arise and create uncertainty as firms begin operating with tighter regulations. The effort to IPO is consistent with Finland’s broader strategy to modernize the gambling sector further, aiming to create open competition with open markets, but also with a focus on social responsibility. The IPO may also serve as a precedent for other state-run monopolists seeking partial privatization following regulatory reforms.
Source: Gambling Insider, Finnish Government
