In a notable shift from confrontation to collaboration, Paf, a gambling operator backed by the Government of Åland, has announced a partnership with Facebook aimed at tackling illegal gambling advertisements targeting Swiss players. This decision comes in the wake of Dutch trade body VNLOK's legal action against Meta over similar issues. The pilot project will kick off next week.
Jesper Eliasson, Paf's chief business development officer, revealed the initiative at the SBC Summit Lisbon during a panel discussion titled "Scandinavia: High Tax, High Standards, High Stakes." This panel included representatives from LeoVegas, FDJ United, and the Danish Gambling Authority, where the topic quickly turned to the challenges of the black market in the gambling industry.
Under the new agreement, Paf will provide Facebook with relevant data, such as licensing documents and website URLs, helping the social media platform identify regulated operators versus illegal ones. This initiative aims to include both operators and affiliates in its scope.
Eliasson stated that the collaboration is a fresh development, mentioning that the decision was made earlier that day following a meeting with Facebook representatives, along with Wolfgang Bliem, CEO of Grand Casino Luzern. Mycasino.ch, the Swiss market leader operated by Bliem's casino, currently generates over €100 million in annual revenue. Eliasson did not disclose the names of the Facebook representatives.
One of the significant challenges Eliasson highlighted is that offshore operators often create advertisements that circumvent Facebook's filters. The multitude of licensing regulations across Europe complicates the verification of these operators. "The licence may come from somewhere else, and it can be hard to detect in that mess of jurisdictions," he explained. Paf's focus is now on establishing a model in Switzerland that could potentially be adapted for other markets.
Eliasson's personal connection to the Swiss market also influenced this choice. He noted that as the head of Paf's Swiss operations and partner with Grand Casino Luzern, he is committed to expanding their presence in the region. He noted that since its 2019 launch, mycasino.ch has quickly become a dominant player, controlling over 30% of the Swiss market. "I don’t want someone who doesn’t have a licence, hasn’t paid for the licence and compliance work, and doesn’t take responsible gaming measures to share the market," said Eliasson.
Paf's involvement in the pilot won't require monetary investment, relying instead on time and discussions. Eliasson mentioned plans to involve the Swiss regulator in the initiative to foster transparency and collaboration.
The audience's reaction at the summit was subdued, as Eliasson remarked that many attendees seemed surprised by Paf's approach, typically marked by other operators suing Facebook instead. However, due to Paf's significant customer acquisition expenses on the platform, Eliasson believes Facebook is equally motivated to eliminate illegal activities on its site.
Eliasson also expressed concerns regarding Switzerland's regulatory weaknesses, particularly the potential negative impacts of stringent gaming product regulations. "People are still free to use the internet, so they’ll go elsewhere for the best product," he cautioned, suggesting that overly cautious policies could drive players to unregulated options.
Bliem previously highlighted the structure of the Swiss model, noting that online licenses are limited to land-based casinos and taxes range from 20% to 80%. He identified critical weaknesses, such as the absence of payment blocking mechanisms and the monopolistic nature of lotteries controlling sports betting, which often pushes Swiss customers to seek better odds overseas.
Eliasson acknowledged the uncertain outcomes of the pilot but expressed optimism about its first steps: "I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step." He affirmed Paf's commitment to continuing its partnership with Facebook in combating illegal operators, emphasizing the importance of ongoing dialogue. If the pilot proves successful, Eliasson hopes to expand this Swiss initiative to other European markets, aiming to set a relevant precedent.
