Paf posts record revenue of $207M in 2024 financial year despite hikes gaming taxes

Paf has reported record revenue of €183 million ($207.4 million) for its 2024 financial year, driven by growth in online gaming. However, earnings at the Nordic-facing operator decreased 1% from €55.1 million to €54.3 million, owing to higher tax rates. The lottery tax increased in Finland from 5% to 12%, and in Sweden from 18% to 22%.

The new revenue high surpassed the previous record of €177.1 million, set in the year before, by 3.3%. Online revenue reached a new high at €161.2 million, beating the previous year by 4.8%, on the back of a record number of registered customers, up 11.4% year-on-year to 685,406. The operator expects active customer numbers to continue to grow in 2025 thanks to its marketing initiatives and new tech updates.

As for the land and sea division, which covers arcades and gaming operations on cruise ships and ferries, revenue fell 6.4% to €21.8 million, a result of the aforementioned introduction of higher tax rates. However, the group highlighted "positive trends" within the segment, including a 2.0% rise in passenger numbers and partner satisfaction reaching its highest level to date.

All in all, the group paid €11.8 million more in taxes in 2024 than in the previous year, leading to a slight drop in net profit from a year ago. Still, CEO Christer Fahlstedt expressed optimism about the operator's current standing, describing the tax increase as something the business is able to deal with in the long term, as gambling operators should be taxed for them to contribute to society.

“We had a strong 2024, and we can be really pleased with the year,” Fahlstedt said. “The trend of increased gambling taxes is bringing down earnings, but this was something we were prepared for. Paf is well equipped to handle tax increases thanks to our customer base, which generates long-term income from a large number of players who play for smaller amounts."

The operator also provided an update on its "sustainable" approach to growth and its societal initiatives. The company distributed €21.5 million in total last year, for use across areas such as social activities, culture, youth work, sports and environmental activities. Paf stressed its commitment remains unchanged, even amid the lower profit.

Paf Chairman Mikael von Schantz said: “The level of Paf funds that can be maintained year after year, combined with the voluntary measures taken in relation to responsible gaming towards customers, is impressive. There is no other company in the industry that is currently achieving anything similar.”

“We want to be a sustainable entertainment company,” Fahlstedt added. “Our results show that it is possible to achieve strong results without compromising on responsible gaming.”

The company also once again amended its player loss limits in March, with players aged 25 and over now only allowed to lose €16,000 within a 12-month period, reduced from a €17,500 limit. Users aged between 20 and 24 now face a €6,000 a year loss limit (down from €8,000), while the existing €1,800 limit remains in place for players aged 18 and 19.