In 2018, in gaming firm Paf, in the Åland region of Finland, became the industry’s first international operator to limit the amount a customer can lose in a year to €30,000 (US$33,000). That move has significantly reduced the number of high rollers at Paf, according to news reports.
The company can expect to shed even more high-value customers now that it’s cut its yearly loss limit by €5,000 to €25,000 (US$27,430), or just over €2,000 a month.
Paf CEO Christer Fahlstedt said, “A lower annual loss limit is good for our customers and it’s the most effective thing we can do.
“We don’t just want to sit down and pat ourselves on the shoulder when we have done something good,” he said. “We have followed closely how the situation has developed, taken serious note of what the research says and the feedback we have received.”
According to research from Stockholm University, however, voluntary gaming limits have no effect. Fahlstedt scoffed at the assertion, saying, “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.”
Paf’s decision to reduce its mandatory loss limit means it will lose about 2 percent of revenue, or about €2 million, according to CDC Gaming Reports.
“We have already promised that we will have no big players left in Paf’s customer database in 2020,” said Fahlstedt. “We are prepared to say no to this unsustainable money that a relatively small number of players in the gaming industry stand for. 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.”
High rollers now comprise 0.08 percent of Paf’s customer database.
Daniela Johansson, Paf Deputy CEO and chief responsibility officer, commented, “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.”
The new lower loss limit will take effect on January 1.
