Åland-based gambling operator Paf has made another move as part of its plan to reduce its reliance on high roller gamblers and provide online casino services in a more socially responsible manner.
In a statement issued Thursday, the company said that it has decided to cut its maximum annual loss limit, that is to say the amount players can lose in a year, by €5,000 to €25,000. The new maximum loss limit will take effect on January 1, 2020 and would apply to all of Paf’s players.
The gambling operator first introduced its annual loss limit last year after research by Stockholm University found that one of the most popular responsible gaming tools offered by gambling companies – setting your own voluntary loss limits – did not produce the desired results of encouraging players to abstain from excessive gambling.
Paf’s original mandatory limit was set at €30,000. Commenting on their decision to lower that limit, the company’s CEO, Christer Fahlstedt, said that they have promised “that none of our players should be able to lose their house or their home” and that they have decided “to strengthen that promise for the next year by lowering our maximum limit.”
The gambling executive added that they have decided to implement the reduction after following closely how the situation has developed and taking into serious consideration the Stockholm University’s research and other feedback received.
“A lower annual loss limit is good for our customers and it’s the most effective thing we can do,” added Mr. Fahlstedt.
Losing High Roller Players
Last year, when Paf rolled out the annual loss cap of €30,000, the company said that it expected the move to result in a 5% drop in its annual income. Mr. Fahlstedt said Thursday that the company would see a 2% drop in annual revenue or about €2 million as a result from the recent reduction of the loss limit.
Paf’s CEO pointed out that “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.”
The introduction of the loss cap also resulted in a steep fall in the number of high roller gamblers opting for Paf’s service. According to the company’s player stats from the past few years, which it published earlier this year, revenue from high rollers represented just 0.08% of the company’s overall revenue between October 2018 and September 2019, down from 0.13% in 2018 and 0.20% in 2017.
Paf said that it is part of its strategy to have no “big players” left in its customer base by 2020. Judging from its player statistics, it is well on track to achieve that. Mr. Fahlstedt said that they “are prepared to say no to this unsustainable money that a relatively small number of players in the gaming industry stand for.”
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