Paf, the gambling operator under the control of the Åland government, is partnering with Facebook to launch a pilot program designed to combat illegal gambling advertisements targeting Swiss players. This initiative comes shortly after the Dutch trade group VNLOK issued a court summons against Meta regarding unlawful gambling ads on their platforms, Facebook and Instagram.
The collaboration was disclosed by Jesper Eliasson, Paf's chief business development officer, during a panel discussion at the SBC Summit in Lisbon titled "Scandinavia: High Tax, High Standards, High Stakes". The conversation addressed the ongoing issues surrounding the black market in gambling.
As part of the pilot, Paf will provide Meta with essential data, including licensing documents and URLs. This information will help Facebook distinguish between regulated operators and those that are not, which includes both operators and affiliates.
Eliasson described the agreement as "absolutely fresh," having been decided that very day. He met with Facebook representatives earlier, alongside Wolfgang Bliem, the CEO of Grand Casino Luzern, owner of mycasino.ch, which has seen annual revenues exceed €100 million. Eliasson refrained from disclosing the names of the Facebook representatives involved.
A significant challenge in this endeavor is that offshore gambling operators often utilize advertising strategies that bypass Facebook's monitoring systems, making it tough to verify claims due to Europe's complex licensing regulations. "The license may come from somewhere else, and it can be hard to detect in that mess of jurisdictions," Eliasson remarked. Hence, they are centering their efforts on Switzerland, hoping to develop a model that can be adapted for other regions in the future.
Eliasson’s interest in the Swiss market is both personal and strategic. He is directly responsible for Paf's operations in Switzerland, including its partnership with Grand Casino Luzern. "For me it's a business question about growing further in the market," he explained.
Since its inception in 2019, mycasino.ch has quickly established itself as a market leader, achieving €70 million in revenue within just 16 months and capturing over 30% of the market. Eliasson expressed a strong desire to maintain this position, stating, "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."
Paf is not financially investing in this initiative but is committing time and effort to foster dialogue. Eliasson also intends to engage the Swiss regulator in these discussions, emphasizing the need to connect all stakeholders. "We want to connect Facebook with the Swiss regulator too, and put everybody around the table," he indicated.
The announcement received a somewhat skeptical reaction from the summit audience, with Eliasson noting, "I don’t think they believed it. Normally you sue Facebook." Nonetheless, Paf allocates significant budget for customer acquisition on the platform, and Eliasson believes there is a mutual interest in keeping illegal operators off Facebook.
Eliasson also highlighted the potential pitfalls of strict regulations, including measures that could slow down gameplay or ban certain products deemed too risky. He warned that such heavy-handed approaches might inadvertently drive players to unregulated alternatives, stating, "If politicians get too scared, we could easily end up with the reverse effect."
Wolfgang Bliem had outlined the current regulatory framework in Switzerland, indicating that online licenses are granted exclusively to land-based casinos and are subject to progressive taxation ranging from 20% to 80%. He pointed out two critical vulnerabilities in the system: the absence of payment blocking and the monopoly held by lotteries over sports betting—issues that force Swiss customers to seek better odds from offshore operators.
Although the success of the pilot remains uncertain, Eliasson expressed optimism about the initial steps taken. "I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step," he remarked. Should the pilot prove ineffective, Paf is prepared to revise its approach. Regardless, Eliasson confirmed the company's commitment to continuing collaboration with Facebook to eliminate 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."
Eliasson hopes that, if successful, this Swiss experiment could serve as a model applicable to other markets across Europe.
