PAF and Meta Launch Pioneering Collaboration to Combat Illegal Gambling in Switzerland

A significant shift in the fight against the illegal gambling sector was announced at the SBC Summit in Lisbon. Jesper Eliasson, Director at PAF, revealed that the company has entered into an experimental partnership with Meta to combat the unlicensed black market in Switzerland. This collaboration marks a rare instance of a gambling operator working directly with a major social media platform to sharpen enforcement against illegal advertising and predatory activities that target vulnerable players.

Eliasson explained that social media platforms are currently pivotal in driving traffic to black market sites, especially as regulated markets face tighter taxation and stricter frameworks. The partnership aims to provide Meta with the necessary parameters, such as license documents and specific URLs, to distinguish between legitimate, regulated operators and those operating outside the law. This effort targets not only the operators themselves but also the creatives and affiliates that facilitate their growth.

Numbers and facts

The necessity for such action was highlighted by other industry leaders at the summit. Bjorn Fuchs, Chair of VNLOK, dismissed the KSA’s reported 90% channelization rate in the Netherlands as a “lullaby,” warning that the black market continues to thrive. Fuchs noted that VNLOK has lobbied Meta for five years without success, leading the organization to initiate a legal case against the tech giant. In contrast, the PAF initiative seeks a cooperative technological solution to thwart the surge of the unlicensed sector.

“One could say that dialogue and cooperation are effective in the long term, but after five years we don’t see any improvement and the advertisements are getting worse. That’s why we took the step to go to court and ask the Dutch judge to look at the matter.” - Bjorn Fuchs, Chair of VNLOK

Background

The experiment in Switzerland is seen as a potential landmark moment. If successful, PAF intends to expand the model to other European markets. The challenges are not unique to Switzerland; in the UK, Richard Clarke of Paddy Power Betfair mentioned recent discussions with former Gambling Minister Baroness Twycross regarding the “horrific” consumer experience on black market sites. Educating policymakers and taking direct action on platforms where these illegal operators recruit is now a top priority for the industry.

Meta's involvement in Switzerland is also notable due to the country's strict data protection stance. On June 21, 2024, the Federal Data Protection and Information Commissioner (FDPIC) confirmed that Meta would not use Swiss user data to train its AI models for the time being. This regulatory environment may have influenced Meta's willingness to engage in more transparent cooperation with licensed entities like PAF to ensure compliance with local gambling laws.

Why it matters for German players

For players in Germany, this development is highly relevant due to the strict requirements of the Interstate Treaty on Gambling 2021 (GlüStV 2021). Only providers listed on the GGL whitelist are permitted to offer services. These providers must adhere to a 1,000 Euro monthly deposit limit and a 1 Euro per spin limit on virtual slots, monitored via the LUGAS system. If the PAF-Meta model succeeds, it could lead to similar filters in Germany, ensuring that players only see ads for safe, GGL-licensed casinos rather than high-risk offshore sites.

What it means for GGL-licensed casinos

For GGL-licensed casinos, a potential expansion of this collaboration to Germany would level the playing field. Currently, legal operators face high compliance costs while illegal competitors often bypass these by advertising freely on social media. Automated blocking of unlicensed ads on Meta's platforms would significantly increase channelization toward the legal market, protecting the investments of licensed companies and ensuring that the integrity of the German regulatory framework is maintained.