European Operators Must Unite Against the Black Market: Paf CEO

Christer Fahlstedt, CEO of Paf, has stated that regulated operators in Europe must join forces to exclude suppliers who work with both the illegal market and licensed companies. According to Fahlstedt, the industry cannot wait for authorities to intervene; operators must cut ties with B2B firms that support unregulated sportsbooks and casinos.

The Importance of Operational Unity

Fahlstedt suggests that all regulated online operators in Europe should reach a collective agreement. "When we talk to payment and gaming suppliers that also serve a black market targeting some of the European markets we operate in, we must commit to not using that supplier at all," Fahlstedt emphasizes.

"We need to unite because if we wait for authorities to do this for us, we might still be discussing the same thing in 20 years with nothing changing," he stresses.

Regulatory Changes as a Catalyst

Recent regulatory changes in the United Kingdom may act as catalysts for this trend, according to Fahlstedt. In April, the remote gaming tax in the UK nearly doubled to 40%, and the remote betting tax will rise to 25% in April 2027. These changes have led several operators to reconsider their position in the market.

The evolution in these regulations has even led major operators like Betfred and William Hill, owned by Evoke, to close hundreds of betting locations in the country. H2 Gambling Capital estimates that the black market in the UK could reach £36 billion by 2031. The share of the illegal market in online betting is expected to reach 22% within five years.

Industry Leadership

Fahlstedt believes that what is happening in the UK may spur significant change, especially with large operators facing the largest market in Europe. "The giants of this industry must take leadership," he suggests. "Paf would be willing to join that initiative."

As an example of the possible consequences, Evolution, a leading live casino company, agreed to a £4.75 million settlement with the UK Gambling Commission after its games were found on six unlicensed sites. The company, which recently received a SEK132 billion buyout offer from Candle Lake, collaborated with the regulator to resolve the matter swiftly.

Impact of Market Decisions

Regulatory and fiscal pressure is forcing operators to streamline strategic decisions. The collective commitment among operators to exclude suppliers that support the illegal market could determine the future health of the regulated sector.

Conclusions

The unity of operators could be a key tool in combating the illegal market. This joint effort can help maintain the integrity of regulated gaming and ensure that resources flow into a safe and authorized environment. Recent changes in the UK underscore the need for swift decisions and a collective effort by industry leaders.