Veikkaus to spend big on social responsibility

Finnish gambling operator Veikkaus will spend a significant sum on its responsible gambling policy in 2020, it has been revealed.

Focusing on player safety 

The brand currently holds a monopoly in the country and will focus both on protecting minors and reducing slot machines. In total, it expects to get rid of 3,500 machines across Finland over the next 12 months.

New age verification procedures are also expected to come in. The proposed changes have been approved by Veikkaus’ Board of Directors.

Earlier this year, authorities in Finland aimed to crack down on TV and radio gambling ads.

Pekka Ilmivata, Director of Responsibility at Veikkaus, said: “Responsible gaming measures have been planned and will continue to be numerous in the coming year.

“We will be involved in the planning of this work. For example, with those dealing with gambling problems, as well as with addiction experts.”

Financial changes

The operator warned that it expects its gambling revenue to drop significantly as a result of these implementations. In fact, it has predicted a possible decline of €50 million (£42.5 million).

As part of these changes, Veikkaus will also change how it reports its annual earnings. Its profits from gaming activities will be displayed, after deducting the winnings paid to players.

Similar reporting models are used in other Nordic countries, namely Sweden and Denmark. This new policy will be utilised for the first time in the company’s 2019 Annual & Sustainability Report. The results will be published in either February or March 2020.

Responsibility for all

The Finnish brand is ensuring that its management team implements these changes by having responsibility play a role in bonuses. The effectiveness of operations for 2020 will have a 40% weighting. This will be measured through operating expenses, as a percentage of gross margin.

Veikkaus will completely cut the 40% efficiency measure from bonuses if the threshold for gambling harm is above what it should be.

Meanwhile, the number of players will count for 35% of bonuses and a quarter is weighted on the development of staff experience.

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