Finland’s state-run gambling operator Veikkaus has been publicly shamed but won’t face further punishment for handing a lucrative no-bid contract to supplier International Game Technology (IGT).
On Monday, the Finnish Competition and Consumer Authority (KKV) issued its verdict on the 2018 contract Veikkaus signed with IGT to handle the gambling operator’s online and land-based lottery, sports betting and bingo platforms. The no-bid contract, which was for an initial eight-year period with three four-year options, was reportedly worth “tens of millions of euros.”
Veikkaus attempted to justify the deal by noting that IGT was already a long-term partner, and thus the new pact was “a continuation of an old agreement.” But an external law firm concluded that the deal likely violated government procurement rules, and Veikkaus reportedly attempted to minimize publicity regarding the deal.
The KKV said Monday that it viewed the IGT deal as “illegal,” as there were no exceptions under the Procurement Act that justified the “substantial changes” Veikkaus made to its existing IGT pact. There was also “no legal basis for direct procurement.”