Month: April 2023

On 12 April, Brazil’s Ministry of Finance held a public audience in Brasilia announcing that that it would be imposing a 15% of sports betting gross gambling revenue.

The public meeting took place between the Ministry and industry stakeholders to discuss the proposed contents of the Provisional Measure (PM), which will outline the framework for Brazil’s regulatory regime.

According to founder and managing partner of Brazilian law firm Montgomery & Associados, Neil Montgomery, the PM is close to finished. It seems highly likely that President Lula will issue the measure upon his return from the Peoples Republic of China, where he is currently on a state visit.

Montgomery said Brazil’s sports betting tax rate is based on the UK model. However, it is still unclear whether the proposed 15% would be the total amount expected from operators who it would be on top of existing Federal social contributions and Municipal Service Tax which would drive up the total aggregate rate to 26.25%.

“If the latter is ultimately confirmed, then Brazil would be quite distant from the UK model of 15%,” said Montgomery.

“This is why the industry was quite outraged with such announcement and is lobbying that this be corrected in the legislation to be enacted. 

Congressional process

Attending the meeting was a variety of organisation’s representing the interests of the gaming industry in Brazil. The main Brazilian football clubs were there, fresh off issuing a joint deceleration urging the Ministry to include them in the ongoing discussions.

Among the other organisations represented at the meeting were a number of recently formed trade bodies representing Brazilian sportsbooks and foreign operators.

“All these players can still influence the Ministry of Finance and other public bodies in shaping the Provisional Measure to be issued by President Lula,” said Montgomery.

“It must also be noted that even after being issued, the Provisional Measure – which becomes effective immediately upon publication in the Official Gazette and enjoys the same status of a federal ordinary law – can still suffer adjustments while it is being reviewed by Congress.”

According to Montgomery, Congress will have a 120-day period to convert the PM into Federal ordinary law. If it is not able to do so, the PM is scrapped.

Relaunch of scratch card lottery

There has also been rumours the PM dealing with fixed-odds sports betting – or a separate PM issued simultaneously – will address the relaunch of LOTEX, the scratch card instant lottery that the government attempted to privatise in 2019.

“[The lottery] flopped the following year when the winning consortium, formed by IGT and Scientific Games, refused to sign the contract,” said Montgomery.

This was due to – among other reasons – to a 2020 Supreme Federal Court decision which broke the Federal Union’s monopoly on the operation of lotteries in Brazil.

“There is speculation that the Federal Government plans to let CAIXA, the Federal Savings Bank that currently exploits the federal lotteries, to also operate LOTEX, even if temporarily,” added Montgomery.

iGB understands that speculation has come to a head with industry sources widely expecting that the white paper is due to be released next week, perhaps as early as Monday.

A spokesman from the Department of Digital Culture Media and Sport (DCMS) did not make any commitments regarding exact timings.

“We do not comment on speculation,” said the spokesman. “We are determined to protect those most at risk of gambling-related harm and are working to finalise details of our review. The white paper will strengthen our regulatory framework to ensure it is fit for the digital age.”

In addition to iGB sources, there has been repeated speculation in the trade and national press regarding the exact date the white paper will be released. The Times reported the 17 April date, as did gambling regulatory newsletter Compliance + More.

However, numerous previous rumour cycles have left many sceptical about any promises as to when the report will be released.

One sign that the release may indeed be getting close is today’s news that the Premier League will be self-imposing a voluntary front-of shirt ban of gambling sponsors. Previous attempts to push this through have failed, with sources claiming that clubs intended to delay the measure until the white paper’s release.

The white paper saga

The white paper itself has been subject to multiple delays in its journey to the public.

In December 2020, Boris Johnson’s government announced the launch of the Gambling Act review, a wide-ranging probe of the country’s gambling laws to ensure that they were “fit for the digital age”.

The subsequent call for evidence ran from December 2020 to 31 March 2021, and saw interested parties make more than 16,000 submissions.

Input ranged from the Gambling Commission’s own submission, alongside evidence from lobbying bodies, operators, suppliers, campaigning groups and individuals.  

The outcome of this process was intended to be the Gambling Act review white paper.

By summer 2022, its release had been pushed back on three separate occasions, but there was hope that publication was imminent. However, the document was caught up in the wider political turmoil that surrounded the resignations of Boris Johnson, and later, Liz Truss.

Changes to the Gambling Act review

By all accounts, the white paper itself has changed significantly over the past year.  

Each time a new government was formed, a new gambling and culture minister took charge and spent time getting a handle on their new brief. In his resignation letter, Johnson’s gambling minister Chris Philp famously said that the document was on the prime minister’s desk ready to be signed-off.

Some have argued that this moment represented a watershed moment for the industry. Scott Benton MP, the target of a recent undercover sting by Times reporters, was secretly filmed saying that the gambling industry has received most of what it wanted from the white paper.

What does the Gambling Act review cover?

While the exact details of the final document remain a mystery, the broad contents have been repeatedly leaked to the press. Many of the proposals will therefore not be entirely surprising.

Affordability checks (sometimes dubbed financial risk checks) are almost certain to be included in some form. While the measure has often been considered something of a red line for industry, much depends on how the checks will actually be implemented, particularly at lower betting volumes.

A mandatory levy is set to be included, as are so called “smart” stake limits for online slots. These are rumoured to be limited to £2 per spin for under-25s, and £15 for older players.

Another potential provision will be the creation of a gambling ombudsman to solve disputes.

Both industry lobbying bodies and campaigners have stated their support of the principles of the review. However, UK trade body the Betting and Gaming Council (BGC) has often repeated the claim that the more stringent versions of reform threaten to push consumers to the unlicensed sector.  

“We strongly support the Gambling review as a further opportunity to raise standards and promote safer gambling, but any changes introduced by the government must not drive customers towards the growing unsafe, unregulated black market online, where billions of pounds are being staked,” said a BGC spokesman.

This month, the BGC came out in favour of a mandatory levy to fund gambling research education and treatment (RET). That approach marked a change from the current framework, whereby funding is channelled via voluntary contributions from the gambling businesses.

This represented a change from the trade body’s previous position, emphasised just weeks before by the organisation’s chair Michael Dugher at the BGC’s annual general meeting.  

The mandatory levy

Director of Clean Up Gambling Matt Zarb-Cousin argued that this was because the BGC had “lost the argument and now they know it’s happening”.

“They’re wanting to shape how it happens, but in order to do so, they need to accept that it’s happening and welcome it,” he said.

“From the operators that I spoke to, and I spoke to several, their understanding was that they weren’t going to argue for a statutory levy even though they knew it was happening.

“Obviously there was a time when it wasn’t going to happen and the BGC were making a public argument against it. And then there was a time where they realised it was going to happen, but they weren’t publicly supporting it.

“And the operators I spoke to were saying that’s because they were quite happy for that to be the quote-un-quote ‘kicking’ that the government gave them.”

For its part, the BGC highlighted the contributions that industry makes towards the UK national economy.

“The regulated betting and gaming industry in the UK contributes £7.1bn to the economy in GVA and generates £4.2bn in taxes which fund essential public services. The industry also supports 110,000 jobs across the country,” a BGC spokesman told iGB.

The next steps in the process

Whether the white paper is released next week or next month, it will be by no means the end of the process. A number of consultations are planned for the summer where the provisions of the document will be scrutinised and implementation will be discussed.

The BGC has already indicated it is involved in these discussions.

“We have been working with the government to ensure that any future changes are proportionate, carefully targeted and effective,” it said.

According to Zarb-Cousin, things could now move at some speed.

“There are still elements of what what’s going to be announced that will need to be consulted on and ironed out, but I think as we move into that phase it’s going to be more about implementation and what’s technically possible,” he said. “How it is implemented will obviously form the basis of discourse around the coming six months. But I expect the Commission will want to move quite quickly.”

The release of the white paper will be the culmination of years of work from government, campaigners and the industry to finalise what the future of the UK gambling regime will be. For Zarb-Cousin, it represents a major milestone.

“We’ve campaigned for a long time to try to reform this stuff and the agenda around which this review has coalesced has become a common sense. But it wasn’t always like that.”

In an unsurprising move, the English Premier League has collectively agreed to remove gambling sponsorship from the front of club ‘matchday’ shirts. 

For those not interested in sports, this is football (soccer) and the Premier League is one of the most watched professional leagues of any sport, anywhere in the world.

This will certainly be met with smiles by most of the industry’s critics, but let’s face it, this is a largely pointless move made by the league so they don’t lose all the revenue from gambling. It’s placatory at best, pointless at worst. Why?

That’s a great question, and one I’m glad you asked. But where do we begin?

The gambling industry – and its critics – has recognised that advertising around sport is potentially a problem for quite a while. Even those industry guardians The Betting And Gaming Council have stood astride the issue like a moral colossus, protecting our children from harm with their whistle-to-whistle ‘ban’. 

We will come back to that later.

A positive step, but a small one

First, the issue itself. It’s a positive step but a small one. For a start, it’s only on the front of shirts. You can still have your gambling company name on the sleeve, for example. 

I give it about 15 seconds after the ban comes in (which is at the start of the 2025/26 season, sports fans) before a club comes out with a strip where the entire sleeve is a gambling company logo.

But the positives of this: it takes gambling sponsor logos off football stickers, I guess (more on that below). It makes them less visible, though not invisible. And… Well, that’s it, I think.

That was a short list. And it took the Premier League how long to come to the conclusion this was a good thing to do?

Does the shirt sponsorship ban do enough?

The move does absolutely nothing to disarm critics. Why? Because it ignores other, equally visible forms of advertising related to the sport. 

Pitchside hoardings are the big one, for me. I mean, the BGC attempted to do… something, with their whistle-to-whistle ban on ‘TV gambling ads’ which they reported cut the number of adverts seen by 4- to 17-year-olds by 97%. 

Except, we know their maths can be slightly dodgy on a good day. The key here though, is the term ‘TV gambling ads’ – actual television adverts, not advertising seen on television passively. This ‘ban’ by the BGC actually did nothing of the sort and, yet again, gave industry critics even more weapons with which to work. 

Because for 90+ minutes in any game, those pitchside advertising hoardings, which are now digital and bright as the sun in the Premier League, are visible.

Better yet, they’re in every photograph from every game, pretty much, so the coverage goes on and on, including in magazines and websites aimed directly at children interested in football. They’re even on the BBC’s Match of the Day. 

They’re every single place the football can be seen or an image of it captured. What, then for all of those 4-to-17-year-olds the BGC thought they had saved?

A major sticking point

A recent article in The Guardian stated: “Pitchside adverts are the biggest conduit for gambling branding during a game, according to a study by academics at the University of Stirling, accounting for 38% of the locations where the sponsors are seen.

“The study, of five matches broadcast live on television, found that the logos were visible more than 500 times during the average match.”

A study a few years ago by Goldsmiths, University of London and the University of East Anglia was pretty illuminating and highlights the need to a total removal of gambling sponsors in the visible parts of the game. 

Advertising gambling products to children in the UK is illegal. But of the 636 stickers in the Official Premier League 2020/21 Panini sticker collection, 270 had a visible gambling logo – that’s 42%. Five magazines were analysed, and all had visible logos. But they’re just logos… right?

Maybe not. The study explained that kids relate to this merchandise in a different way to adults. 

Study lead author Dr Natalie Djohari from the University of East Anglia said: “Advertising Standards Agency guidelines say that it is the responsibility of marketers to ensure children are not exposed to gambling advertising but a football player emblazoned with a logo, even when it is intended to sell products to adult consumers, has their photo refracted multiple times on to football cards, stickers, magazines and other merchandise.

“In this way, gambling logos very quickly become visible throughout the football-related worlds of child fans.” 

Visibility and normalisation

One of the good things that will come from this ‘ban’ (and it’s not a ban, it’s a voluntary action) is that visibility day to day is reduced. 

With shirt-front sponsorship comes social visibility, and even, you could argue, implied endorsement by the wearer. We don’t actually know how powerful something like this might be on a developing brain. But it’s not a great leap to think that a young child growing up in a house of football fans might favour the brand they’ve been seeing all their lives on the shirts of their mum and dad.

Children’s replica kits presently do not have gambling sponsors on, which is fair enough and common sense. But if I have spilled food down my front, I generally don’t notice because honestly, how often do you look at your own shirt? 

If you’ve spilled it down your front, I’ll spot it straight away and I’ll be silently judging you because it’s much more visible to me. The poster on a kid’s bedroom wall with adult players on it has the sponsor on; the website has the sponsor, et cetera, et cetera. 

Smoking and drinking

This visibility is a part of normalisation, and when it comes to addictive things, normalisation is actually a problem. This is regardless as to whether it’s a primary addiction or a comorbidity, by the way. It took decades to reverse the normalisation of smoking, though it has been highly effective overall and tobacco usage is way down in the UK. 

The normalisation of drinking has given us more than one generation of binge drinkers and rampant alcoholism, which is basically socially acceptable and in some circles, even encouraged. Gambling harm by itself is socially not so pervasive, but its effects are still massive in the vulnerable; and if we normalise its advertising to the young, we are taking one almighty gamble that is simply not worth the potential reward.

Falling down the pyramid

It’s still a complicated issue, even aside from how it completely ignores other advertising in the league by pretending it’s not there. For a start, this is only the Premier League gambling sponsorship. 

Every season, three clubs are relegated to the Championship, and three clubs are promoted. Unless the entire football league adopts this, how will that work? Say a promoted club has a gambling sponsor, what happens then? “Thanks for supporting us in our rise from the second tier… Seeya!”

“Uh, lads – contract.”

Don’t forget, many of the brands affected by the ‘ban’ are not operating in the UK.

They rely on the visibility of the league in the countries in which they operate.

Some online betting firms that operate in Asia, for example (where let’s not forget, there is but one legal online gambling jurisdiction, and it’s not China), are or have been shirt sponsors. So it’s fair to say some advertisers are illegal gambling operators. That seems like an issue to me.

Facile moves like a ‘ban’ on the shirt front gets us precisely nowhere. If this is an issue (and plenty within the industry believe it is, as well as without) then tackle it like it’s an issue. Take decisive action, disarm the critics – and let’s not mess around with the kids.

The Australian sportsbook’s fine, issued by Liquor & Gaming New South Wales (NSW), relates to Betr’s marketing when it launched in the state last October.

The business offered 100-1 and 20-1 odds on major events and advertised these in newspapers, on radio and television, and online.

This breached NSW laws prohibiting inducements to gamble, including opening betting accounts or increasing betting activity.

Liquor & Gaming NSW therefore issued 14 penalty infringement notices totalling $210,000, the largest fine issued to a wagering operator for gambling inducements in the state.

Betr voluntarily ceased the advertising campaign when contacted by Liquor & Gaming NSW. With the penalty notices paid, the matter concluded without a court process.

Promotions crossed the line

“This company tried to attract a new customer base and establish a significant market share with promotions that we consider crossed the line, using inducements that had the potential to cause harm to the community,” Liquor & Gaming NSW executive director regulatory operations and enforcement Jane Lin said.

“In many cases, such promotions can only be legally offered to betting account holders who, unlike the general public, have made a conscious decision to open an account and receive this information.”

It is the second marketing fine for operator, which launched in 2022. The Northern Territory Racing Commission levied a $75,000 fine in February, for sending unsolicited marketing messages to a self-excluded player in February.

The Betr project was announced in April 2022. It brings together Rupert Murdoch’s News Corp, advisory business Tekkorp Capital and sportsbook technology provider BetMakers.

The business may expand its operations through the acquisition of PointsBet Australia, with talks revealed following media interest in January.

SportChamps also hit with marketing fine

Another wagering business SportChamps was also convicted of posting illegal gambling advertisements.

SportChamps was fined $40,000 and ordered to pay $14,000 in costs for the breach. This marked the third time it fell foul of regulations, after a $2,000 fine in 2018 and a $2,500 fine in 2019.

The adverts on Facebook, Twitter, Instagram and its website offered cash prizes for games requiring membership, special odds and bonus cash prizes, free bets and a ‘refer a friend’ promotion.

“Gambling operators like SportChamps that try to get around these restrictions are acting unlawfully and increase the risks of gambling harms,” Lin said.

Offering free bets on Facebook and Instagram showed a “complete disregard for the rules and the well-being of those in our community who didn’t consent to receive gambling advertising”.

“Zero-tolerance approach”

“Liquor & Gaming NSW has a zero-tolerance approach to the publication of illegal gambling inducements,” Ms Lin added. She pledged it would continue to proactively monitor gambling advertising to ensure all operators were compliant with the Betting and Racing Act.

A court may impose a maximum penalty of $110,000 per offence for a business and $11,000 for an individual who publishes a prohibited gambling ad. Each penalty notice carries an additional fine of $15,000.

Co-created with people with lived experience of gambling harms, the campaign will seek to change societal perceptions and understanding of the gambling-related harm, as well as remove any stigma attached to the issue.

The initiative will be supported by a number of organisations including Citizens Advice and notable figures such as television doctor Ellie Cannon and presenter Tyler West, whose brother experienced harm from gambling.

“Gambling harms are hidden and complex in nature,” GambleAware chief exectuive Zoë Osmond said. “For many people who experience gambling harm, feelings of shame and embarrassment can often mean they struggle to talk about the issue with loved ones. 

“Gambling harms can affect anyone, which is why it is so important that we break down the stigma associated with it and encourage people to come forward and talk about gambling harm. It’s about time we put an end to stigma and opened up the conversation about gambling.”

Barriers

The campaign follows the publication of a GambleAware-commissioned study in February that showed stigma remains a personal and social barrier to people in Scotland.

The study looked at Gambling Support Service (GSS), which is delivered in the country via a joint initiative between GambleAware and Citizens Advice Scotland (CAS).  The project delivers training to frontline workers, helping them recognise when people are at risk of, or experiencing, gambling harms. 

The evaluation focused on the first two years of the project, with the main concerns being that public understanding of the severity of gambling harm was limited, while stigma exists towards those experiencing gambling harm, which in turn stops them from seeking advice. 

888 have endured much negative news over the previous year, but the business’s financial results contained cause for cautious optimism.

After taking on £1.70bn in debt – including £1.19bn of the total on a floating rate – acquiring William Hill’s non-US operations, central banks globally tightened interest rates which made servicing that debt far more burdensome.

While this will continue to be a concern for the foreseeable future, the business continues to execute its long-term strategy of deleveraging the business’s debt to EBIDTA ration from 5.6x to 3.5x by the end of 2025. Accordingly, the company said that it does not intend to pay any dividends to investors until that ratio falls below 3.0x.

The company also made clear that it has already taken steps to reduce its exposure to interest rates by hedging their interest rate exposure so that 70% of their interest rates are fixed for the next 3 years.

Focus on profitability

888 also highlighted the complimentary nature of its and William Hill’s business, opting to raise its synergy target from £100m to £150m.

“In 2023 we remain on track to deliver higher profitability as we deliver against our clear strategic priorities,” said 888 executive chair Lord Mendelsohn. “Our clear priorities of integration, market focus, and deleveraging give us confidence in our 2025 targets, as we build a stronger and more sustainable business for the future.”

Analysts Regulus Partners applauded the group’s strategy as correct – but argued that the future was still one characterised by continued decline compared to its rivals.

“888 is quite rightly focusing on profitability given its £1.73bn net debt (5.6x pf EBITDA) and so maintaining revenue growth regardless of cash flow impact or sustainability cannot be a priority,” said Regulus.

“However, while the reasons for market share losses are sounder than before, the result remains continued relative decline for a group which has been consistently undermining its strategic position since c. 2012.”

Middle East VIP scandal  

In January, the business announced that CEO Itai Pazner had resigned in the wake of anti-money laundering failures in its Middle Eastern VIP operations. The business subsequently suspended all accounts in that region, leading to a hit the company’s revenue, as well as regulatory uncertainties.

However, in the report the Mr Green operator said it had concluded its internal investigation into certain “shortfalls in best practices” in its operations in the region – and had introduced a number of new policies and procedures to mitigate the AML risk.  

Subsequently, the business announced that it had initiated the process of reopening accounts and on-boarding new customers.  

“No further [are] impacts expected and the board currently expects to recover 40-50% of revenue from the cohort, resulting in a £25-30m revenue headwind for FY23,” said the report.

Full year 2022 results

In 2022, the business recorded a 74% increase in revenue to £1.24bn, as well as an adjusted EBITDA rise of 82% to £217.9m. However, once the revenue impact of the William Hill acquisition is taken into account, the company saw its organic revenue decline 3% compared to 2021.

The company has £170m cash on hand and £150m in loans it can access. The company made a loss of £115.7m in 2022.

“The group’s financial performance in the period primarily reflected the extensive actions being taken to drive higher standards of player protection,” said Mendelsohn.

“While recent compliance issues in the Middle East were very disappointing, they have underlined the importance of our enhanced and proactive risk management framework.”

Bettor Capital, an investment platform focused on the real-money igaming market, led the funding round, while further backing also came from Tigrim Capital and Winforton Investments, complementing reinvestment from existing shareholders.

The round also drew investment from industry professionals including Sportingbet founder Mark Blandford and Alea founder and chief executive Alexandre Tomic.

It was also announced that David VanEgmond, founder and chief executive of Bettor Capital, and formerly of Barstool Sports and FanDuel, will join the BeyondPlay board. This also came after in February it was announced that Bettor Capital had purchased LeoVegas Group’s 25% holding in BeyondPlay for €1.9m.

BeyondPlay said that it would use the funds to support its ongoing product development program, with a focus on delivering the final phase of its multiplayer software, as well as to grow its team ahead of planned launches over the next two years.

Bettor Capital funding round

“This is another major milestone for BeyondPlay, and we’re excited to have secured the confidence and support of such reputable and knowledgeable investors,” BeyondPlay founder and chief executive Karolina Pelc said.

“A combination of Bettor Capital’s leading strategic expertise and the mindsets and experience of some of the industry’s most successful serial entrepreneurs will take our growth to the next level.

“Exceeding our funding target is a testament to the hard work and dedication of the BeyondPlay team. Innovation requires a willingness to take risks, so I am very happy to see that our increasing momentum towards product and client launches is recognised and trusted by both new and existing investors alike.”

The round followed the news that BeyondPlay last month secured a Remote Casino Host and Gambling Software Licence from the British Gambling Commission. BeyondPlay already held a B2B Critical Supply Licence from the Malta Gaming Authority, while further applications are currently ongoing in other markets. 

A highly experienced executive, Aument most recently served as global chief executive for transportation at Aecom, where she led a team of over 14,000 people.

Prior to this, Aument spent over 15 years with Transurban, starting out on smaller leadership roles and working her way up to become president and chief executive for North America.

Aument also had a spell working for the Virginia Port Authority, Bechtel Civil Infrastructure and Dittus Communications. 

In addition, Aument sits on a range of advisory boards for organisations including Cornell University and the Eno Center for Transportation.

Aristocrat director

“I am delighted that Jennifer has agreed to join the Aristocrat board,” Aristocrat chairman Neil Chatfield said. “Jennifer has a particular understanding of US and Australian environments, the complexities of supply chains and the delivery of major projects, and is a thought leader in the use of consumer digital technology. 

“Jennifer also brings strong government relations and public affairs capabilities. Jennifer is an impressive, people-oriented business leader, with a track record of active community engagement. 

“I am pleased to welcome Jennifer to Aristocrat and look forward to her contribution to our ongoing success.”

MPs from a number of parties will visit a local betting shop to place a BGC Charity Bet on the British showpiece racing event, which takes place on 15 April at Aintree Racecourse as part of the Grand National festival.

Each participating MP will be given £50 to bet on a horse, with all the winnings going to a charity of their choice. Should their bet not win, BGC members will make a £250 donation to the MP’s nominated charity.

MPs can visit a Paddy Power, William Hill, Ladbrokes, Coral, Betfred or local independent betting shop in their constituency to place the charity bet ahead of the race this weekend.

Levelling Up Minister Dehenna Davison, Shadow DCMS Minister Alex Davies-Jones, Minister for Enterprise Kevin Hollinrake and COP26 President Alok Sharma are among the MPs that will take part in the initiative this year.

Shadow Defence Secretary John Healey, former Labour Cabinet Minister John Spellar, former DCMS Minister Caroline Dinenage and Shadow Apprenticeships Minister Toby Perkins will also place a charity bet.

Last year’s Grand National charity bet drive raised almost £11,000 for a number of charities.

“Millions of people, from all different backgrounds, will be coming together to watch the Grand National and place a bet on the world’s most famous horserace,” BGC chief exectuive Michael Dugher said.

“Betting shops support tens of thousands of jobs, bring vital revenue to the UK’s hard-pressed high streets and support the national and local economies through tax and business rates. They also provide community to millions of betting and gaming fans.

“I also want to say a huge thanks to the MPs who have made the time and effort to meet with their local constituents working in high street shops, for backing so many good causes and local charities, and for promoting the Grand National which remains one of Britain’s biggest and best cultural and sporting events seen around the world.”

The new limits are to be implemented in early summer 2023. It will cost the company roughly €7.0m annually and applies to all Paf’s online games.  

Paf chief executive Christer Fahlstedt said it is the operator’s biggest investment in responsible gaming since its formation.  

“We are adjusting a number of different limits and the overall impact of our measures will make a noticeable difference in our numbers and customer segments,” he said.  

“We have an opportunity to take another step and improve our commitment to responsible gaming. It’s something we want to do because it’s the right thing to do, if we are to continue our journey to become a sustainable entertainment company,” he adds.  

Additionally, Paf is reducing its loss limit for young people aged 18 and 19 by 82%.  

The loss limit for the operator’s newly legal players will drop from the current €10,000 to €1,800 per year.  

Although the limit for those aged 20-24 will remain at €10,000. The new €17,500 will apply to players 25 and up.  

“The change further strengthens our RG-focus on young people, which is good because it is in line with the research on gambling problems that says young adults are an extra vulnerable group when it comes to gambling,” said Daniela Johansson, deputy chief executive and chief responsibility officer at Paf.

Fahlstedt added that the operator will continue to focus on responsible gaming and urges other operators in the industry to follow Paf’s lead.