Finland firms Veikkaus, RAY and Fintoto to merge, but who will be CEO?
The major Finnish online gambling organisations Veikkaus, Raha-automaattiyhdistys (RAY) and Fintoto will merge in the next few weeks to create a Nordic mega-company, the publication YLE reports.
The merger will create business synergies and could lead to staff cuts due to rationalisation, and only a third of the current management teams in all three organisations will be retained, the publication speculates.
A CEO of the merged organisation has yet to be named, with several top execs vying for the position and a salary that is likely to exceed Euro 450,000 a year.
Local media reports indicated late last year that Finland's Cabinet Committee on Economic Policy had recommended the merger following an extensive review of market conditions (see previous InfoPowa report).
Spokesmen for the government have said that the intention is to maintain domestic market exclusivity, and generate more funds for national charitable organisations.
Finland's gambling industry is estimated to be worth around Euros 1.7 billion annually, and one of the most active markets in Europe, with Finns spending generously on internet gambling.
Swedish betting company Nordicbet is offering odds on who will get the top job, with Juha Koponen of Veikkaus the favourite, followed by RAY's Velipekka Nummikoski and Fintoto CEO Pertti Koskenniemi.
The odds have been assessed on the basis that the management incumbents have the most experience and knowledge of the companies, although outside recruitment for the top job has not been ruled out.
In terms of commercial track records, Veikkaus has performed the best of the three, and Koponen has a strong reputation as a business leader.
Online Casino News Courtesy of Infopowa
