Paf's CEO Addresses Sustainability and Competition Challenges in Finland and Europe

Paf, the gaming operator owned by the autonomous government of Åland (Finland), is facing a significant transitional period. The company is preparing for the opening of the regulated gaming market in Finland in 2027, the last integral gaming monopoly in the European Union (only Poland retains a monopoly for online casinos), and is reinforcing its responsible gaming policy with stricter loss limits despite the impact on its short-term results. More than €500 million have been allocated to social causes since Paf was founded 60 years ago, and CEO Christer Fahlstedt insists on the long-term vision amid current challenges.

Paf and the Evolution of the Regulated Finnish Market

The imminent commercial regulation of online gaming in Finland marks a transformation for the local sector and for Paf, which has not yet formally applied for a license but is in the process. Christer Fahlstedt describes mixed feelings about the end of the monopoly: "It is the right thing for Finland, but there are many unknowns, more unknowns than certainties." He warns that a regulation that is simultaneously too lax in advertising and too strict operationally could pave the way for draconian measures in the future or unleash affiliate channels used by illegal operators.

Fahlstedt identifies specific risks:

• Excessive advertising could provoke extreme regulatory responses and a loss of public trust.
• The prohibition of affiliates for legal operators, compared to the freedom maintained by illegal ones, represents a competitive disadvantage.
• The authority in Finland is competent, but implementation may be slow, and the regulatory impact is pending measurement once the market opens.

European Markets: Pressure from the Unregulated Sector and the Swiss Case

Paf has evolved from a small operation with 51 gaming machines to become a relevant player in markets such as Sweden, Spain, Estonia, Latvia, and Switzerland. In Switzerland, it operates in collaboration with Grand Casino Lucerne under the Mycasino brand, leading the regulated Swiss market. However, Fahlstedt acknowledges that the illegal market, both in Switzerland and other European countries, "upsets" the competitive balance, exceeding the regulated market in scale.

The Swiss regulation, based on the transition from brick-and-mortar operators to online and the allocation of taxes to social security, is valued for its acceptance level and limitations on advertising. However, there remains a significant outflow of players and resources to unauthorized platforms, a phenomenon that authorities must urgently address.

Loss Limits: Responsibility Strategy and Internal Evolution

Paf has been promoting mandatory loss limits for clients over 25 years of age for years; the annual maximum has been reduced from €30,000 to €15,000, with the target of reaching €8,000. Fahlstedt acknowledges that this policy negatively impacts short-term figures but strengthens the sustainability of the model in the long term: less "easy" revenue forces difficult decisions, leading to a leaner workforce but a more robust company. "If we had kept revenues without limits, perhaps we wouldn't have advanced as much in competitiveness," the CEO asserts.

"The idea is to build a sustainable structure in these markets in the long term. It is a very popular policy internally, and it is clear that it is the right way forward." — Christer Fahlstedt

Joint Limits and Pan-European Regulation as Industry Responses

The implementation in Spain of a maximum monthly deposit limit of €3,300 per player (covering all accounts with different operators) reflects a trend towards cross-sectional controls and has been defended by Paf. Fahlstedt emphasizes the limitations of partial regulations, which only consider a player's activity on a single platform and promote the shifting of plays between operators, reducing real protection and the effectiveness of risk control.

He insists on the need to migrate to a centralized European model that establishes affordability requirements at the national level and avoids undue competitive advantages from lax policies at certain companies. The establishment of joint limits is a first step, but regulatory convergence is required to protect both players and the industry.

Industry Unity Against Suppliers Operating for the Illegal Market

Fahlstedt calls for regulated operators to take collective action in an environment where platform and payment providers often serve both licensed casinos in jurisdictions like the UK, Switzerland, Germany, Sweden, and Finland, as well as crypto casinos targeting those same markets. The CEO of Paf proposes that all legal operators refuse to work with suppliers that also serve the illegal ones: "We need to unionize, as waiting for authorities could mean two decades of inaction."

The recent situation in the UK—where large operators face increasingly strict regulatory requirements—could be the catalyst for demanding greater exclusivity from suppliers and eliminating the economic incentives that sustain the unregulated sector.

Outlook for Paf and the State Industry

The coming years will define the scope of Paf's strategy as Finland adapts its regulatory framework, loss limits are reduced, and the European market faces the threat of unlicensed gaming. Paf is willing to absorb momentary losses for the sake of operational sustainability, social responsibility, and adaptation to more stringent regulatory scenarios. Collective leadership and inter-sectoral cooperation are seen as keys to restoring competitive balance and defending the integrity of the regulated sector.