The Nordic gaming company Paf has released its annual report for 2023, highlighting a successful year that generated significant funds for societal benefits. The report also underscores the company’s commitment to sustainable entertainment, with notable developments in revenue and corporate governance.
Paf’s revenue for 2023 rose from €165.7 million (£141.2 million/US$179.4 million) to €177.1 million, marking a 7% increase. This growth translated into a record profit of €55.1 million, up from €44.8 million the previous year, representing a 23% increase. This result is the highest in Paf’s 57-year history. However, upcoming increases in gaming taxes across several countries, including Finland, Sweden, Estonia, and Latvia, will affect future conditions.
Paf will distribute €31.4 million in funds for societal benefits. These funds support various third-sector organizations involved in social activities, culture, youth work, sports, and environmental initiatives.
In 2023, Paf enhanced its focus on responsible gaming by reducing the annual loss limit for all customers to €17,500. Additionally, a specific loss limit of €1,800 per year was introduced for young players aged 18–19. In spring 2024, the loss limit for young players aged 20–24 was further reduced from €10,000 to €8,000 per year.
Paf’s published customer segmentation data from 2017 to 2023 show a trend towards more sustainable gaming practices. Notably, the segment of customers losing more than €30,000 in one year has been eliminated due to the imposed loss limits. The data, which include the number of players ending the year in profit, have been reviewed by auditors as part of the financial statement audit.
Paf has appointed Daniela Forsgård as a new board member, succeeding Birgitta Eriksson, who is stepping down after many years of service.
Paf’s efforts in responsible gaming and societal contributions reflect its ongoing commitment to sustainable and ethical business practices in the igaming industry.
“We can be happy and proud with the past year. We have gained a larger customer base and the number of active customers has increased by 27%, which explains some of it, but we are also well aware that the temporarily low gaming taxes in Finland have helped the result,” says Christer Fahlstedt, CEO.
“The trend of increasing gaming taxes will continue, and we expect to see more much-needed demands for increased responsible gaming measures. The changes will result in reduced profitability and many operators will find it more difficult. But Paf is well prepared for the times ahead,” added Christer Fahlstedt.
“It’s undeniably great that Paf is achieving a great result, allowing us to distribute a total of €31.4 million in the form of Paf funds. The employees have done a phenomenal job over the past year, and the Board would like to thank all Paf employees who have made this possible,” says Jan-Mikael von Schantz, Chairman of the Paf Board.
“This is an important continuation of the direction we are striving to take at Paf for our responsible gaming. Now young customers can only gamble with us for sums that are at more sustainable levels and within the framework of the customer segment we have defined ourselves as the green segment,” says Christer Fahlstedt.
“It is encouraging to see that we have once again increased the green revenues with more sustainable revenues by a full 7.6%. It is possible to change an outdated business model in the industry and we will continue our strive to be a gaming company that provides sustainable entertainment in everyday life,” he added.
“Our published and open customer segments show what our investments in responsible gaming measures have achieved over the years. The publication gives credibility to our efforts at a level that no other gaming company has been able to show.”
“I really want to thank Birgitta for the solid contribution she has made to Paf’s Board over the years.”
“Daniela Forsgård’s merit-based knowledge of finance, combined with the international experience she possesses, will fit in well with the Board. In addition, Daniela has personal experience of Paf as she previously worked at Paf,” says Jan-Mikael von Schantz.
