Paf sees strong results despite tightening responsible gambling measures
The Åland Islands’ gambling operator made social contributions of €21.5m in 2024
Finland.- Paf, the gambling operator controlled by the government of the autonomous Åland Islands, has reported strong results for 2024 despite once again choosing to tighten its loss limits for customers. Revenue was up by 3 per cent year-on-year at €183m.
Group earnings were down by 18 per cent to €54m, affected by the increase in lottery tax in Finland and gaming tax in Sweden. Social contributions reached €21.5m, benefiting social and environmental initiatives.
Chairman Jan-Mikael von Schantz said: “The level of Paf funds that are maintained year after year, combined with the voluntary measures taken in relation to responsible gaming towards customers, is impressive. There is no other company in the industry that is currently achieving anything similar.”
Despite the impact of tax increases, the company says its focus on lower stakes via loss limits had put it in a good positions to take the hit. Paf’s breaks down its revenue into customer segments. It said revenue from low-risk players, dubbed ‘green’ rose by 12.3 per cent year-on-year.
CEO Christer Fahlstedt said: “We had a strong 2024, and we can be really pleased with the year. The trend of increased gambling taxes is bringing down earnings, but this was something we were prepared for. “Paf is well equipped to handle tax increases thanks to our customer base, which generates long-term income from a large number of players who play for smaller amounts.”
Criticism of Veikkaus
Fahlstedt also criticised the Finnish state gambling monopoly Veikkaus for raising its own player loss limits. Paf is planning to compete with Veikkaus in the Finnish mainland when the country liberalises its gambling market, which is expected by 2027.
The Finnish Gambling Act has yet to received parliamentary approval, but Paf has already signed up the Finnish Formula 1 star Kimi Räikkönen as a brand ambassador to ensure a strong presence in the market.
“I am genuinely surprised and a little disappointed that our state-owned counterpart Veikkaus in Finland has chosen to raise its loss limit this spring,” Fahlstedt said. But we are going our own way and they are going in a different direction. At a time when the social harms of gambling are well understood, it’s deeply concerning that a government-owned monopoly would choose to loosen protections rather than strengthen them.”
Paf is the only European gaming operator we’re aware of that has chosen to impose its own loss limits across all customer accounts. It first applied limits in 2018 and has been gradually lowering them, with tighter limits for younger age groups. In March, it lowered its general limit to €16,000 per year.
