Paf, a gambling operator owned by the Government of Åland and the tech partner of the leading Swiss online casino, mycasino.ch, is taking a proactive approach to combating illegal gambling advertisements on social media. Instead of pursuing legal action like the Dutch trade body VNLOK, which recently summoned Meta over unlawful ads on Facebook and Instagram, Paf has opted to collaborate with the tech giant. This partnership is set to launch a pilot program aimed at keeping illegal operators from reaching Swiss players via these platforms, with operations expected to commence next week.
Jesper Eliasson, Paf's Chief Business Development Officer, announced the initiative on Wednesday during the SBC Summit Lisbon’s panel titled "Scandinavia: High Tax, High Standards, High Stakes.” In this discussion alongside representatives from LeoVegas, FDJ United, and the Danish Gambling Authority, the focus swiftly shifted to black market concerns.
Eliasson revealed that Paf would provide certain data to Meta for the pilot, including licensing documents and website URLs, to help the company distinguish between regulated and unregulated operators as well as affiliates. He emphasized the necessity of this collaboration after meeting with Facebook representatives in Lisbon, alongside Wolfgang Bliem, the CEO of Grand Casino Luzern. This casino operates mycasino.ch, which reportedly generates over €100 million in annual revenue.
Describing the situation, Eliasson noted that offshore operators often evade detection by crafting advertisements that circumvent Facebook's filters, complicating the verification of their licensing claims across Europe’s diverse regulatory landscape. He said, "The license may come from somewhere else, and it can be hard to detect in that mess of jurisdictions. So we're focusing on Switzerland to see whether we can build a model there that can then be scaled to other jurisdictions."
Eliasson’s personal stake in Switzerland is significant, as he oversees Paf's operations in the market and the partnership with Grand Casino Luzern. He is committed to expanding Paf's reach, noting that mycasino.ch, launched in 2019, became a market leader within 16 months with a €70 million revenue target. Currently, the brand commands over 30% of the Swiss market, and Eliasson is determined to safeguard this position against unlicensed operators who do not adhere to compliance or responsible gaming measures.
This collaboration with Facebook will not require Paf to invest financially; instead, it will focus on time and dialogue, with plans to involve the Swiss regulatory authority. Eliasson expressed a desire to gather all relevant parties to coordinate efforts, stating that while the audience at the summit responded quietly, he believes Facebook is motivated to help eliminate illegal activity from its platform. "They don't want illegal business on the platform," Eliasson asserted.
Challenges remain within the Swiss regulatory framework, and Eliasson cautioned that overly stringent product regulations could unintentionally drive consumers to online alternatives. He referenced a panel discussion where Bliem addressed the shortcomings in the Swiss model, including issues like the absence of a payment blocking mechanism and the monopoly on sports betting held by lotteries, which leads consumers to seek better odds elsewhere.
Despite the uncertainties of this pilot, Eliasson remarked on its potential, affirming, "I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step.” Should the initiative fail to produce the desired results, Paf is prepared to refine its approach. Regardless of the outcome, Eliasson reiterated Paf's commitment to partnering with Facebook in the ongoing struggle against illegal operators, envisioning the potential for this pilot to pave the way for broader applications across Europe.
