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Veikkaus announces structural change and closure of Tampere casino ahead of Finnish gambling reform
Finnish proprietary gambling operator Beikaus announces a series of changes to the company's structure as the Finnish gambling market prepares for a transition to a multi-license gambling system scheduled to begin on January 1, 2026. According to a report by the Helsinki Times, the transition outlined in the Finnish government program raises certain issues as well as providing additional opportunities for the company.
Changes to the gambling system:
According to reports, Veikkaus vice president of human resources, Heli Lallukka, referred to the system change as an important milestone for operators. Indeed, Beikaus will need to change its workforce structure to meet transition requirements, as well as improve expertise in key operating areas. The company reportedly recently concluded negotiations and negotiations over the role of 825 employees. The negotiations were aimed at maintaining the status of Finland's leading operator, Beikaus, as well as the power to compete in the international market.
This restructuring is part of a strategy to provide operators with a lot of investment and external knowledge to respond to the ever-changing market conditions and demands, and they seem to recognize the need to take quick and efficient action to adapt to the gambling environment in which a large number of operators are involved and fierce competition is expected, which requires the ability to develop the latest technologies and maintain and expand their customer base.
As the Helsinki Times reported, Beikaus will split its business into three main categories, with Nora Väävirta SVP in charge of slot machines and the company's own arcade, Jacko Nordlund SVP in charge of the domestic online casino and betting market, and Jonas Reuters SVP in charge of the international business.
The transition to a new gambling system, which will reportedly begin in 2026, will result in approximately 185-215 laid-off employees, with approximately 110-150 laid-off employees expected to face changes to the terms and conditions of the labor agreement. Sources report that these layoffs, however significant, are down from initial estimates predicting the end of employment of about 240 people and reflect revisions to 195 labor agreements. The decrease in the number of layoffs is reportedly due to the company's productive discussions with workers' representatives. Final decisions on termination of employment and modifications to individual employment conditions are expected by the end of the year. This decision will reportedly take into account the possibility of employees accepting new positions or titles within Beikaus and the possibility of transferring internal positions. The company's strategic response to the changing Finnish gambling industry environment against market changes is expected to begin closing casino Tampere on December 9 and end game arcade operations for 19 companies on December 22, 2023. Once completed, Beikaus expects to be fully prepared for the upcoming market conditions and regulatory changes.
Thursday, November 16, 2023