Paf reduces reliance on highest-risk players as profits grow

Åland Islands-based operator Paf has seen the number of customers who lost €30,000 or more fall in 2019 to just 0.04% of its players, with revenue from the segment falling 67.2% to €3.2m.

In an initiative it started in 2018, Paf broke down its customer data by net spending level.

It forms part of a wider effort to better protect players, that has also seen it set mandatory loss limits of €25,000 for customers across all jursidictions. The operator claims voluntary limit-setting is far less effective than strictly imposed controls.

In 2019, customers who lost more than €30,000 made up just 0.04% of Paf’s customers, down from 0.13% in 2018. These customers accounted for €3.2m of the operator's €102.8m gross gaming revenue for the year, the operator noted.

Players who lost between €0.01 and €8,000 made up the majority of Paf's customers, at 67.7%, up from 66.1% in 2018, and accounted for the bulk of 2019 revenue, at €79.0m (up 9.7%).

Customers who lost between €15,001 and €30,0000 made up 0.46% of customers, down from 0.49%, and brought in revenue of €20.6m, while those losing between €8,001 and €15,000 made up 1% of customers, down from 1.11%, accounting €23.0m of GGR.

A further 30.8% of Paf’s customers finished the year winning money, taking home a combined €23.0m in profit. While winning customers' average profit amounted to €347, down 9.9%, average gross gaming profit per customer also fell 9.8% to €479.

“We believe in openness and that openness gives strong credibility to discussions about responsible gaming,” Paf chief executive Christer Fahlstedt said. “We are proud and happy that our development is going in the right direction.”

In addition, Paf announced profits of €25.6m in 2019, up 4.1%, from turnover of €114.2m, up 2.1%.

The business announced a dividend of €40m, comprising 2019 profits and money from prior years, which will go into the Åland Islands’ treasury, which it said would be used to alleviate the impact of the novel coronavirus (Covid-19) outbreak.

“Paf’s purpose is to generate surplus for the benefit of society and this year it feels especially good that we have the opportunity to make an even greater contribution,” Paf chief executive Christer Fahlstedt said.

Paf Chairman Jan-Mikael von Schantz said the contribution was especially important at a time of crisis.

“We would like to express our sincere thanks to the management and staff for their excellent work,” Schantz said. The importance of Paf’s contribution to society appears to be extraordinarily high in situations such as these.”