Paf, a gambling operator run by the Government of Åland and partnered with mycasino.ch, is setting up a pilot with Facebook to address illegal gambling advertisements targeting Swiss players. This initiative will start next week, marking a shift from the legal actions recently taken by the Dutch trade group VNLOK against Meta for similar issues.
Jesper Eliasson, Paf's chief business development officer, announced the collaboration at the SBC Summit in Lisbon during a panel titled "Scandinavia: High Tax, High Standards, High Stakes," which featured discussions with representatives from LeoVegas, FDJ United, and the Danish Gambling Authority focusing on the black market.
As part of this pilot, Paf will provide Meta with licensing documents and URLs to help the company differentiate between regulated and unregulated operators, a task complicated by the varying licensing practices across Europe. Speaking to iGB after the panel, Eliasson noted that the partnership is still fresh and was decided the same day. He had met with Facebook representatives, although he did not disclose their names, alongside Wolfgang Bliem, the CEO of Grand Casino Luzern, which owns mycasino.ch, a site that has grown to over €100 million in annual revenue.
Eliasson emphasized that offshore operators often evade Facebook’s systems by using deceptive marketing techniques and asserted that the complex regulatory landscape in Europe makes it challenging to verify operators’ legitimacy. “The licence may come from somewhere else, and it can be hard to detect in that mess of jurisdictions,” he stated. The focus for Paf is Switzerland, with hopes of developing a model that could be adapted for other regions.
For Eliasson, this endeavor has personal significance as he manages Paf's Swiss operations. “I’m personally very engaged there; I’m responsible for our Swiss business and the partnership with Grand Casino Luzern,” he explained, underscoring the business motivation behind sustaining and expanding their market presence.
Launched in 2019, mycasino.ch quickly became a leading entity with a market share exceeding 30%, prompting Eliasson to prioritize the protection of that position against unlicensed competitors. He expressed concern about operators who evade regulatory measures without contributing to licensing or responsible gaming practices.
Paf’s engagement with Facebook requires little investment beyond time and effort, as they also plan to involve the Swiss regulatory body in the discussions. “We want to connect Facebook with the Swiss regulator too, and put everybody around the table,” Eliasson said. Reaction to this announcement at the conference was mixed, with Eliasson stating, “I don’t think they believed it. Normally, you sue Facebook.” He noted that Paf spends significant money on customer acquisition through the platform and believes Facebook also sees interest in removing illegal businesses from their site.
Eliasson highlighted potential pitfalls in Swiss regulatory policies, warning that excessive restrictions on gambling products could drive players to unregulated alternatives. He remarked, “If politicians get too scared, we could easily end up with the reverse effect.” Bliem shared insights into the Swiss regulatory framework, which ties online licenses strictly to land-based casinos and imposes a progressively increasing tax. He pointed out two vulnerabilities: the absence of payment blocking and a lottery monopoly on sports betting, which could encourage Swiss customers to seek better odds abroad during major events.
Although Eliasson acknowledged uncertainties regarding the pilot's success, he expressed optimism about the progress made so far. “I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step,” he remarked. If the pilot does not meet expectations, Paf is willing to revise it. Regardless, Eliasson confirmed Paf's commitment to collaborating with Facebook in combating illegal gambling. He also indicated his desire to extend successful outcomes from this Swiss pilot to other European markets, aiming to set a wider precedent for regulating the industry.
