The Åland gaming company Paf has cut its yearly loss limit by €5,000. Last year Paf became the first international gaming company in the world to introduce a maximum limit for the amount a customer can lose in a year. This loss limit taken in combination with other improved measures in responsible gaming has significantly reduced the number of big players (high rollers) at Paf.
When the yearly loss limit was introduced it was set at €30,000 – Paf has now chosen to reduce this maximum limit to €25,000.
“We have promised that none of our players should be able to lose their house or their home, that’s why we imposed a loss limit of €30,0000. We have now decided to strengthen that promise for the next year by lowering our maximum limit to €25,000 – which corresponds to just over €2,000 a month on average,” says Paf CEO Christer Fahlstedt.
“We don't just want to sit down and pat ourselves on the shoulder when we have done something good. We have followed closely how the situation has developed, taken serious note of what the research says and the feedback we have received. A lower annual loss limit is good for our customers and it’s the most effective thing we can do,” adds Christer Fahlstedt.
Voluntary gaming limits have no effect
Voluntary gaming limits have long been a cornerstone of the tools gaming companies offer to implement responsible gaming to their customers. Research results from Stockholm University (see appendix) show that voluntary gaming limits have no effect.
“This new research reaches a terrible conclusion. It shows that one of the most common tools for responsible gaming – setting your own voluntary limits – is worthless and does not work. That's why we have chosen to lower our fixed mandatory loss limit further because it has a real effect,” says Christer Fahlstedt.
The reduction will lead to lower revenues
Paf’s decision to reduce its mandatory loss limit will also mean that Paf will lose about two percent of revenue, which corresponds to about €2 million.
“We have already promised that we will have no big players left in Paf's customer database in 2020. We are prepared to say no to this unsustainable money that a relatively small number of players in the gaming industry stand for,” says Christer Fahlstedt.
“Of course, it is not good to lose revenue, but we are doing well as a gaming company and I am sure that our customers appreciate the position we have taken,” adds Christer Fahlstedt.
The number of big players at Paf is still falling sharply
Earlier this year Paf decided to make public figures that show how much different customer segments win and lose while playing their online games. The latest figures show that the number of big players at Paf has continued to fall. Now the proportion of big players is down to only 0.08% of the customer database (see appendix). Paf's openness is unique in the gaming industry – an industry that tends to be extremely secretive about, in particular, the losses of big players.
“All of Paf's profits go to the benefit of society. Therefore we should also be able to say that the money we earn has not caused major problems in society. That is why we want to highlight the figures while doing something for real to stop big players. We are also encouraging others in the gaming industry to follow suit,” says Daniela Johansson, Paf Deputy CEO and Chief Responsibility Officer.
The new lower loss limit of €25,000 will take effect on 1 January 2020 and will apply immediately to all online players at Paf.
Paf is a Nordic gaming company founded on Åland in 1966 to generate profit for the benefit of society. We were one of the very first gaming companies to go online in 1999. Many of our games are exclusive to Paf and developed by our in-house Games Studio. We are an award-winning industry leader in responsible gaming. Our physical gaming operations include over 30 cruise ships criss-crossing the Baltic and North Seas.
Paf has roughly 400 employees representing over 30 nationalities. Our offices are located on Åland, in Helsinki, Stockholm, Riga, Tallinn, Oslo, Norrköping and Madrid. Paf (Ålands Penningautomatförening) is licensed and controlled by the Government of Åland.
In 2018, the Paf Group had a total turnover of 111,8 million euros and a profit of 24.6 million euros. More information at aboutpaf.com