Veikkaus Oy warns investors to expect reduced 2020 earnings

In Finland and online and land-based gaming operator Veikkaus Oy has reportedly announced that its annual earnings could drop by as much as €50 million ($55.6 million) next year as a result of its decision to implement a new raft of responsible gambling policies and practices.

According to a report from Casino News Daily, the state-owned firm recently came under fire for not doing enough to prevent vulnerable customers from developing dangerous gaming habits and subsequently reacted by revealing that it would be reducing the size of its land-based slot estate by approximately 43% over the course of the next five years.

Gradual decline:

Helsinki-headquartered Veikkaus Oy reportedly detailed that this diminution from supermarkets, service stations and kiosks located across Finland is due to begin from next year via the culling of some 3,500 slots before being followed by similar cuts to leave it running only about 10,500 machines by the end of 2025.

Authentication advances:

Casino Daily News reported that the operator also stated that it would be bringing compulsory identification verification technology to its slot estate in 2021 in order to allow aficionados to permanently or temporarily exclude themselves. Olli Sarekoski, Chief Executive Officer for Veikkaus Oy, purportedly proclaimed that this roll out is to come a full year earlier than had been initially planned and could eventually reduce his firm’s annual profit by as much as €200 million ($222.5 million).

Marketing moves:

As if all of this wasn’t enough, Veikkaus Oy moreover reportedly declared that it would be changing the way it advertises its wares so as to better promote more responsible gambling practices. This move purportedly followed public outcry concerning a summer radio campaign that included regular players being encouraged to gamble by a presumed therapist.

External advice:

Finally, Casino News Daily reported that Veikkaus Oy is to furthermore reduce the number of channels on which it advertises and has established its six-member Ethics Advisory Board, which has been tasked with supplying the firm with an outside view on how to best deliver on its aims of being more socially responsible.