Paf CEO Highlights Responsible Gaming, Regulatory Challenges, and Market Expansion at 60-Year Milestone

Paf, owned by the autonomous government of Åland in Finland, is preparing for the launch of Finland’s regulated online market in 2027. CEO Christer Fahlstedt sees this as both an opportunity and a challenge, especially as Paf’s commitment to lower player loss limits impacts short-term revenue but aims to create sustainable operations and strengthen responsible gaming for the long term.

Paf’s Evolution: From Ships to Multi-Market Online Casino

Founded in 1966, Paf began with just two part-time staff members and a modest number of slot machines. The company quickly expanded gaming operations to ferries sailing the Baltic, eventually generating over 95% of profits from gaming at sea. The operator’s strategic shift online in 1999 made it one of the sector’s early digital pioneers. Today, Paf focuses on casino-first online gaming across Sweden, Spain, Estonia, Latvia, and Switzerland. Over €500 million has been distributed to social causes during its 60-year history.

Finland’s Regulated Market: Opportunity, Uncertainty, and Competitive Risks

The upcoming regulation of Finland’s commercial gambling market marks the end of the country’s monopoly model. Preparation remains underway as Paf has not yet submitted its licence application but is "about to," according to Fahlstedt. He acknowledges the significance of the move for Finland but underlines concerns about "more unknowns than knowns" regarding market details and regulatory frameworks.

Fahlstedt notes that regulatory design faces two core risks:

• Excessively liberal marketing rules may provoke public backlash and result in stricter controls.
• Overly strict regulation, particularly on affiliates and channeling, could drive players to the black market.

He anticipates a major debate about gambling advertising within 18 months of the market’s launch: “If this happens, it’s not good for us as an industry as we will have draconian measures imposed in response.”

Paf’s Responsible Gaming Strategy and Lowering Loss Limits

Paf stands out by lowering mandatory annual loss limits for players over 25 years old from the previous €30,000 to €15,000. The company’s goal is to reach €8,000 over time. Fahlstedt concedes a negative revenue impact but views the move as essential for long-term competitiveness and sustainability. “It’s a very long-term prospect and ambition. We’re pushing and forcing ourselves to change our business model to a certain extent.”

He also emphasises that tough cost decisions—including a leaner staff structure—were necessary due to these changes. The internal policy is popular among employees and has become core to Paf’s positioning.

The Black Market Challenge in European Jurisdictions

Black market operators continually challenge regulated gambling environments across Europe. Even in well-established markets like Switzerland, unlicensed sites "dwarf" legal ones. Fahlstedt states, “The regulated market works quite well, but you can also see the massive size of the unregulated market targeting Switzerland.”

Switzerland, which relies on a partnership model with trusted land-based operators and allocates all tax revenues to the pension system, is cited as one of Europe’s most successful regulated markets. Despite this, substantial revenue leaks to unregulated competitors. Fahlstedt urges authorities to recognise and address the scale of this issue.

Joint Deposit Limits and Player Protection: Insights from Spain

Spain recently introduced a shared deposit limit across all operators, capping monthly deposits at €3,300 per player. Paf has advocated national-level joined-up systems and sees the Spanish approach as a step forward. Fahlstedt argues that operator-specific limits force players to open multiple accounts and may fail to offer real protection. Centralised national systems are needed to align player safety measures and affordability checks across the industry.

Industry Collaboration Against Unregulated Markets

Fahlstedt calls for a unified approach by regulated online operators and suppliers. He advocates that serious licensed brands across Europe refuse to use content or payment providers serving both regulated and black markets. He suggests progress in the UK could catalyse broader industry movement: “We could bunch up and demand that if a company wants to provide slot games or payments for the UK, Swiss, German, Swedish, Finnish markets, for example, they cannot also serve the crypto casinos targeting those markets.”

Paf has committed to such efforts and is willing to coordinate with former monopoly operators and industry leaders to enforce standards. The aim is to remove commercial incentives for suppliers to serve both legal and illegal clients.

International Market Performance and Steady Growth

Through its partnership with Grand Casino Lucerne, Paf’s Mycasino brand remains the market leader in Switzerland. The Swiss model illustrates how effective regulation rooted in experienced, vetted land-based operators supports stable growth. Nevertheless, progress can be slow, and authorities face persistent frustration with delays addressing the unregulated sector.

Fahlstedt closes by asserting: “It’s been great fun—as exciting today as it was 10 years ago. It’s never been boring or routine.” Paf’s current market position reflects both its willingness to adapt and lessons learned from decades of state-controlled stewardship.