Paf, a gambling operator owned by the Government of Åland, is launching a pilot program with Facebook to combat illegal gambling ads targeting Swiss players. This initiative comes shortly after the Dutch trade association VNLOK issued a court summons to Meta regarding unauthorized gambling advertisements on its platforms. The pilot is set to commence next week and is aimed at preventing illegal operators from accessing Swiss users via Facebook.
Jesper Eliasson, Paf’s chief business development officer, disclosed the news on Wednesday at the SBC Summit Lisbon during a panel discussion themed "Scandinavia: High Tax, High Standards, High Stakes." The panel also included representatives from LeoVegas, FDJ United, and the Danish Gambling Authority, and it quickly focused on the issue of the black market.
As part of the pilot, Paf will be sharing specific data with Meta, such as licensing documentation and URLs of authorized operators, enabling Meta to differentiate between regulated entities and those that are not. This information will encompass both operators and affiliates.
In a follow-up conversation with iGB, Eliasson described the partnership as "absolutely fresh," having finalized the agreement on the same day. He had earlier met with Facebook representatives in Lisbon alongside Wolfgang Bliem, CEO of Grand Casino Luzern, which operates the Swiss platform mycasino.ch—now boasting over €100 million in annual revenue. Eliasson did not disclose the names of the Facebook representatives present at the meeting.
Eliasson explained that one challenge lies in the tactics used by offshore operators, who create advertisements that evade Facebook's monitoring systems. He pointed out that Europe's varied licensing structures complicate 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 noted, emphasizing a focus on Switzerland to develop a scalable model that could eventually be applied in other regions.
Regarding the choice of Switzerland for this pilot, Eliasson stated that it is both a personal and strategic decision. As the head of Paf's Swiss operations and the partnership with Grand Casino Luzern, he views it as essential for further growth in the market. Mycasino.ch, which launched in 2019, quickly became a market leader, generating €70 million in revenue within 16 months and capturing over 30% of the market share. Eliasson expressed a desire to safeguard this position against unlicensed competitors that do not adhere to proper licensing or responsible gaming practices.
Paf's involvement with Facebook in this initiative does not involve any direct financial investment but rather an allocation of time and dialogue. Eliasson aims to include the Swiss regulator in discussions, stating, "We want to connect Facebook with the Swiss regulator too, and put everybody around the table."
The reaction from the audience during the announcement was subdued. "I don’t think they believed it. Normally you sue Facebook," Eliasson remarked. Despite this skepticism, he highlighted the significant investment Paf makes in acquiring customers through Facebook, asserting that the tech giant shares an interest in eradicating illegal businesses from its platform.
Eliasson also cautioned about potential issues that may arise from overly restrictive product regulations. He warned that making games slower or banning titles deemed "too risky" could have adverse consequences, driving players to unregulated alternatives online. "If politicians get too scared, we could easily end up with the reverse effect," he noted.
On the previous day, Bliem presented insights into the Swiss regulatory framework, explaining that online licenses are exclusively granted to land-based casinos and taxed progressively between 20% to 80%. He identified weaknesses in the system, including the absence of payment blocking and the lotteries' monopoly on sports betting, which encourages Swiss customers to seek better odds abroad, particularly during major events like the World Cup.
Eliasson acknowledged that the success of this pilot is not guaranteed but expressed confidence that they have accomplished the first step. "I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step," he said. If the pilot does not yield the desired results, he indicated that Paf would "rework it and find something else."
Regardless of the outcomes, Paf remains committed to collaborating with Facebook to confront illegal gambling operators. "We have good conversations, and they don’t want illegal operators," Eliasson stated, adding that they will continue to work together to gauge their success. He also expressed a desire to expand this Swiss model to other markets if the pilot proves effective, aiming to set a precedent for similar initiatives across Europe.
