Åland Islands-based gambling operator Paf is becoming less dependent on high rollers, as it sees revenue from big spenders fall, but profits increase.

The operator, which in 2018 became the first to introduce mandatory loss limits, and last October reduced them from €30K to €25K, says revenue from those losing at least €30,000 fell by a massive 67% year-on-year, to just €3.2m.

Specifically, Paf reported that the number of customers who lost €30K or more last year dropped from 0.13% to 0.04%. Meanwhile, revenue from players losing between €0.01 and €8,000 grew by 10% to €79m. Total gross gaming revenue (GGR) for 2019 was up 4% to €102.8m, while profit was also up 4% to €25.6m.

Paf has also confirmed it will be paying a dividend of €40m to the Åland Islands government to help fund COVID-19 (coronavirus) relief efforts.

Reflecting on the results Paf Chairman, Jan-Mikael von Schantz, said:

“We would like to express our sincere thanks to the management and staff for their excellent work. The importance of Paf’s contribution to society appears to be extraordinarily high in situations such as these.”

While Paf CEO, Christer Fahlstedt, added:

“We believe in openness and that openness gives strong credibility to discussions about responsible gaming. We are proud and happy that our development is going in the right direction.”

AYO.NEWS says:

While Paf’s strategy seems to be paying off in terms of business , many would argue it doesn’t really address the majority of problem gambling cases – as for the vast majority of problem gamblers, financial crisis would start well before they hit a €25K loss limit.

Staying with Paf, last month we reported Paf had significantly expanded its Swedish footprint with the acquisition of Malta-based, Swedish-licensed Mandalorian Technologies – operator of brands including No Account Casino, No Account Bet, and Prank Casino.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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