Paf CEO Declares that Voluntary Gambling Limits are Worthless
Åland-based operator reduces the maximum loss limit by €5,000 to protect players, as Paf CEO declares that voluntary gambling limits are worthless.
The chief executive officer of Paf has declared that voluntary gambling limits are “worthless” as the operator reduces the maximum a customer can lose at the operator by €5,000 to €25,000. Christer Fahlstedt cited research conducted by Stockholm University which showed that self-imposed deposit limits were ineffective.
Referencing the study that focused on 4,328 slot players, Fahlstedt said the research showed that voluntary deposit limits did not affect the amount that was spent over a 90-day reporting period. The CEO said the research proved that one of the most common tools used for responsible gambling did not work, Fahlstedt said it was a “terrible” idea for existing operators to encourage gamblers to spend less.
Last year the Finnish operator became the first online betting company to introduce a maximum amount a customer can lose in a year, this limit was set initially at €30,000 per year. The loss limit came into effect on September 2018, with Paf projecting a 5% hit to revenues. However, the company has now reduced this figure to €25,000 which will impact revenues by another 2% which is estimated to be worth €2 million.
Despite the move, Paf’s CEO said the company wasn’t going to get complacent, nor did it deserve a “pat on the back” for introducing these loss limits and there was more they could do to ensure responsible gambling attitudes in their players. He did, however, state that these measures are good for the consumer, saying;
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. – Christer Fahlstedt, Paf CEO.
Paf’s stance on limiting the amount a customer can lose has been heralded by the company who had suggested that a limit should be mandatory and part of the licensing conditions, but so far the regulator Spelinspektionen has ignored these calls.
The company admitted that once a customer hits the loses limit nothing is stopping them from making losses at another betting site, but the operator is convinced that many players who reach the threshold will see this as a wake-up call and reduce their gambling. Paf also admitted that it would lose VIP accounts when these players hit the limits, even if the player can afford to continue player but the company have stated, “Unfortunately, we will lose them, but the benefits outweigh the disadvantages.”
The Åland-based operator introduced the cap as a reaction to the number of customers Paf had contacted due to risky behaviour, a number that had quintupled in 2017 to almost 10,000. Uniquely Paf operate on a not for profit basis with all profits distributed to good causes on the island.