Veikkaus’ slots removal could hurt NGOs

The removal of slot machines from Veikkaus could end up hurting NGOs.

Finland.- Veikkaus has recently announced that it would cut around 3,500 slot machines from public spaces and improve social measures. Now, experts that work with non-profits said that organisations in the social and health care field could end up suffering from a loss of funds in 2021.

Veikkaus’ initiative establishes that by 2025 around 8000 of the 18,500 machines would be removed from shops, kiosks, restaurants and service stations, Yle reported. Besides removing 3,500 slots by next year, Veikkaus is planning to introduce new compulsory pre-game ID checks.

Vertti Kiukas, secretary general of the SOSTE umbrella organisation for social and health NGOs, said that some associations are entirely funded by those proceeds from Veikkaus. “The smaller the organisation, the more dependent it is on funding,” he said. Kicks added that if Veikkaus profits experience a €100 million decline, it would result in NGOs losing around €35 million. Veikkaus’ CEO also recently said that the removal of slot machines could result in annual turnover decreasing by €150 million – €200 million.

”The Ministry of Social Affairs and Health will ultimately decide whether assistance will be taken away from work focusing on mental health, children and the elderly,” he says.

Veikkaus reports revenue decline in Q3

Veikkaus totalled €1.2 billion in gross gaming revenue (GGR), which is a 2.1% setback when compared to the same period a previous year. Profits totalled €762.2 million, which is a 1.3% rise from 2018.

In the third quarter of the year, almost all Veikkaus games saw their turnover fall, with the exception of Lotto. The latter’s turnover of €267.4 million rose between January and September by 6.7%. Total turnover for January-September also declined by 4.1% to €2.2 billion. Of the turnover, 57.1% came from the points of sale, whereas 42.9% came from the digital channel.