The 16.6% cut will bring about a loss for the company's revenue of about USD 2,1 M

Paf reduces its yearly loss limit for players to nearly USD 27,500

“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,” says Paf CEO Christer Fahlstedt.
2019-10-03
Reading time 2:43 min
The EUR 5,000 reduction will take effect 1 January 2020 and will apply immediately to all online players. The firm says it will have no big players left in its customer database by 2020. Paf points put research results from Stockholm University showing that voluntary gaming limits have no effect.

Paf has cut its yearly loss limit by €5,000 (about USD 5,475). Last year the Finland-based company became the first international gaming firm in the world to introduce a maximum limit for the amount a customer can lose in a year. This loss limit taken in combination with other improved measures in responsible gaming has significantly reduced the number of high rollers at Paf. When the yearly loss limit was introduced it was set at €30,000 – Paf has now chosen to reduce this maximum limit to €25,000 (over USD 27,500), a 16.6% cut.

“We have promised that none of our players should be able to lose their house or their home, that’s why we imposed a loss limit of €30,0000. We have now decided to strengthen that promise for the next year by lowering our maximum limit to €25,000 – which corresponds to just over €2,000 a month on average,” says Paf CEO Christer Fahlstedt in a news release.

“We don’t just want to sit down and pat ourselves on the shoulder when we have done something good. We have followed closely how the situation has developed, taken serious note of what the research says and the feedback we have received. A lower annual loss limit is good for our customers and it’s the most effective thing we can do,” he adds.

Voluntary gaming limits have long been a cornerstone of the tools gaming companies offer to implement responsible gaming to their customers. Research results from Stockholm University show that voluntary gaming limits have no effect. “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,” Fahlstedt explains.

Paf’s decision to reduce its mandatory loss limit will also mean that Paf will lose about two percent of revenue, which corresponds to about €2 million. “We have already promised that we will have no big players left in Paf’s customer database in 2020. We are prepared to say no to this unsustainable money that a relatively small number of players in the gaming industry stand for,” Paf CEO says. “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.” 

Earlier this year Paf decided to make public figures that show how much different customer segments win and lose while playing their online games. The latest figures show that the number of big players at Paf has continued to fall. Now the proportion of big players is down to only 0.08% of the customer database. Paf’s openness is unique in the gaming industry – an industry that tends to be extremely secretive about, in particular, the losses of big players.

“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,” says Daniela Johansson, Paf Deputy CEO and Chief Responsibility Officer.

The new lower loss limit of €25,000 will take effect on 1 January 2020 and will apply immediately to all online players at Paf.

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