Veikkaus to Lay Off Between 125 and 190 Staff

Finnish gambling monopoly Veikkaus is set to lay off between 125 and 195 staff, following the conclusion of restructuring negotiations.

As part of the downsizing, the operator will close about 15 of its gaming arcades, at venues where it determined sustainability measures such as mandatory ID play and loss limits have made it too difficult to turn a profit. Veikkaus also made “material changes” to the contracts of around 60-110 employees, as well as 50 contractors. The changes will come into effect in January 2022.

The decision comes after Veikkaus opened negotiations with 830 staff in an effort to cut costs following a decline in business partially caused by the effects of the novel coronavirus (Covid-19) pandemic. At the time, the business said it expected to lay off up to 200 staff.

The exact number of staff to be made redundant has still not been determined, as some staff have the option to take on new roles if they accept.

Jari Heino, senior vice president for channels and sales, said: “The reforms have been designed in such a way that those leaving the company will be offered support during the change. Basically, most members of Veikkaus’ personnel that the negotiations concerned will be offered new positions within the company. For example, Casino Tampere, which will be opened in December, still needs dozens of gaming industry and customer service professionals.

“The sustainable casino of a new era of gaming will offer great facilities and jobs for many people. It is essential that we look ahead and work to make sure that Veikkaus retains its dynamicity today and tomorrow.”

The monopoly is also facing fierce competition from online operators. The hugely popular pay n play option has even further increased the share of online only operators licensed in the EU.