In an innovative approach to tackle illegal gambling advertisements on digital platforms, Paf, a gambling operator owned by the Government of Åland, has partnered with Facebook for a pilot initiative in Switzerland. This decision comes shortly after the Dutch association VNLOK issued a court summons to Meta over similar illegal ads appearing on Facebook and Instagram.
The pilot, which is expected to commence next week, aims to curb illegal gambling operators from targeting Swiss players. Jesper Eliasson, Paf's chief business development officer, announced the initiative during a panel discussion at the SBC Summit Lisbon focused on the gambling landscape in Scandinavia. The panel included representatives from LeoVegas, FDJ United, and the Danish Gambling Authority, and the conversation quickly shifted toward the issue of the black market in gambling.
As part of the collaboration, Paf will provide Meta with certain data, including licenses and URLs, to help them identify which operators are legitimate and which are not. This information will assist in distinguishing between regulated entities and illegal ones, encompassing both operators and their affiliates.
Eliasson referred to the agreement as "absolutely fresh," revealing that the decision was made on the same day of the summit. Earlier, he had met with Facebook representatives, including Wolfgang Bliem, the CEO of Grand Casino Luzern, which operates mycasino.ch, a leading site in the Swiss gambling market generating over €100 million in annual revenue.
Despite the promising direction of this partnership, Eliasson noted the challenges posed by offshore operators who create advertisements that bypass Facebook's monitoring systems. He emphasized the complications arising from Europe's diverse regulatory landscape, which can make it challenging to validate claims of legitimacy. "The license may come from somewhere else, and it can be hard to detect in that mess of jurisdictions," he stated. The pilot will focus initially on Switzerland, with the intention of developing a scalable model that could be applied in other regions.
Eliasson's personal involvement in the Swiss market, where he oversees Paf's business and its partnership with Grand Casino Luzern, also influenced the choice of Switzerland for this pilot. He expressed that maintaining Paf's market-leading position, which currently holds over 30% of the market after just a few years of operation, is essential. "I don’t want someone who doesn’t have a license, hasn’t paid for the license and the compliance work, and doesn’t take responsible gaming measures to share the market," he explained.
Regarding the partnership with Facebook, Paf is investing little financially, focusing instead on the time and discussions with the platform. Eliasson plans to involve Swiss regulators in the process to facilitate open communication between Facebook and the local authority. He remarked on the audience's mild reception of the news, noting, "I don’t think they believed it. Normally you sue Facebook." Paf, however, invests significantly in customer acquisition on the platform, and Eliasson believes Facebook shares a mutual interest in eliminating illegal business activity on its site.
Eliasson also raised concerns about overly strict product regulations that might inadvertently push users to seek better options elsewhere on the internet. He cautioned against restrictive measures such as slowing down game speeds or excluding titles viewed as "too risky." He highlighted the risk of creating a scenario where regulations encourage users to turn to unregulated platforms.
Bliem discussed the weaknesses in the Swiss regulatory framework during a previous panel at the same conference, pointing out that online licenses are exclusively linked to land-based casinos and are subjected to significantly variable tax rates. He indicated the absence of payment blocking as a critical gap, alongside the lottery monopoly on sports betting, which drives Swiss players to offshore betting sites offering better rates during major events such as the World Cup.
While the pilot's success remains uncertain, Eliasson expressed confidence in this first step toward a potential solution. If the pilot proves ineffective, he indicated that Paf would "rework it and find something else." He reiterated his commitment to collaborating with Facebook to combat illegal operators, stating, "We have good conversations, and they don’t want illegal operators, so we’ll work on it together and see if we succeed." If the pilot initiative is successful, Eliasson hopes to expand this model beyond Switzerland, potentially influencing practices across Europe.
