Paf Fights Problem Gambling with First Ever ‘Loss Limits’
Paf, a Finland-based gambling operator, is opening a new front in the war on problem gambling and is putting its own profits on the line in the process. Late last week, the company announced a new set of income-based loss limits that limit the amount of money any player can lose to €30,000 ($34,860 USD) in any given year.
The new, self-imposed, limits are an industry first for a gaming company that is not holding a monopoly position in its market, according to a statement from Paf officials.
As one might expect, the new loss limits are expected to have an impact on Paf’s annual revenue. Paf officials say the gambling company is anticipating about a five percent drop in revenue once the new policy takes effect in September. In a statement on the company’s website, Paf officials outlined their thoughts on the potential revenue loss saying:
This action means that Paf will lose about 5 percent of its income. But we believe that this loss of profit can be accepted by the people of Åland (where Paf is based) whom our owner represents. At the same time, it is our mission to generate a reasonable profit annually, and introducing a hard cap set some more pressure on us to recruit new customers who play at a sustainable level.
Paf is especially mindful of how it earns its revenue as it operates on a unique business model that funnels profits back into community projects in Åland, where it is based.
Pag CEO Christer Fahlstedt said the new limits will help the gambling industry’s reputation saying, “The reputation of the gambling business is at a low, and concrete measures need to be taken in order to regain the trust of the public. We don’t want to see people’s lives destroyed because of gambling addiction. There has to be a way back. We hope that Paf’s new hard cap will take us in the right direction.
The new loss limits are set to take effect in September.