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Paf Teams Up with Facebook to Curb Illegal Gambling Ads in Switzerland: A Deep Dive into the Pilot Program

By jili tutorial · October 3, 2026

Paf Teams Up with Facebook to Curb Illegal Gambling Ads in Switzerland: A Deep Dive into the Pilot Program

Introduction: A Novel Approach to a Persistent Problem

Just days after the Dutch trade association VNLOK filed a court summons against Meta over illegal gambling advertisements on Facebook and Instagram, a Nordic operator has chosen a different path—collaboration rather than litigation. Paf, the gambling operator owned by the Government of Åland and the technology partner behind Switzerland’s market leader mycasino.ch, has agreed to a pilot scheme with Facebook designed to prevent unlicensed operators from targeting Swiss players on the platform. Work is scheduled to begin next week.

This initiative marks a significant departure from the adversarial stance many regulators and industry bodies have taken toward Big Tech. Instead of suing, Paf is investing time and dialogue to build a data-sharing model that could become a blueprint for other markets. Below, we break down the pilot’s mechanics, the strategic rationale behind choosing Switzerland, the regulatory landscape that makes it necessary, and the potential for scaling across Europe.

Background: The Broader Context of Illegal Gambling Ads

In late October, VNLOK (the Dutch trade body for licensed online gambling operators) served Meta with a court summons, alleging that the company had failed to remove ads for unlicensed gambling sites from Facebook and Instagram. This legal action reflects a growing frustration among regulated operators who pay for licenses, comply with strict responsible gambling requirements, and compete against offshore rivals that bypass these obligations.

Why Collaboration Over Litigation?

Paf’s approach is deliberately non-confrontational. As Jesper Eliasson, chief business development officer at Paf, explained during the SBC Summit Lisbon’s “Scandinavia: High Tax, High Standards, High Stakes” panel, the company spends substantial sums acquiring customers on Facebook. “They don’t want illegal business on the platform,” Eliasson noted, framing the pilot as a mutual interest. Meta benefits from cleaner ad inventory, while Paf protects its market share and investment.

The Pilot Program: How Paf and Facebook Will Work Together

Key Details Announced

Eliasson broke the news on Wednesday during the SBC Summit. The agreement was “absolutely fresh. We decided it today,” he told iGB afterward. He had met with Facebook representatives in Lisbon earlier that day alongside Wolfgang Bliem, CEO of Grand Casino Luzern, which owns mycasino.ch. Eliasson declined to name the Facebook representatives.

Data Sharing: What Paf Will Provide

Paf will share specific data with Meta, including:

This data will be used to build a clearer picture of who is regulated and who is not, covering both operators and affiliates.

No Financial Investment

Paf is investing “nothing. Only time and talks,” Eliasson said. The company also plans to bring the Swiss gambling regulator into the process. “We want to connect Facebook with the Swiss regulator too, and put everybody around the table,” he explained.

Timeline and Next Steps

Work is due to begin in the coming week. The pilot will initially focus on Switzerland, with the aim of creating a scalable model that can be applied to other jurisdictions if successful.

Why Switzerland? Strategic and Personal Motivations

A Market Leader Under Pressure

Mycasino.ch launched in 2019 and quickly became the dominant player in Switzerland’s regulated online gambling market. Eliasson noted that “after 16 months we were a €70 million business and clear market leader.” Today, the site generates more than €100 million in annual revenue and holds over 30% of the market.

Protecting that position is paramount. “I don’t want someone who doesn’t have a licence, hasn’t paid for the licence and the compliance work, and doesn’t take responsible gaming measures to share the market,” Eliasson said.

Personal Engagement

Eliasson’s involvement is personal as well as strategic. “I’m personally very engaged there; I’m responsible for our Swiss business and the partnership with Grand Casino Luzern,” he said. “For me it’s a business question about growing further in the market.”

Switzerland as a Test Bed

Switzerland offers a relatively contained regulatory environment with a clear licensing system tied to land-based casinos. This makes it easier to verify operator legitimacy and measure the pilot’s effectiveness compared to more fragmented European markets.

Regulatory Weak Points in Switzerland: What Makes the Black Market Thrive

The Swiss Licensing Model

Online gambling licenses in Switzerland are exclusively tied to land-based casinos. Taxes are progressive, ranging from 20% to 80%. While this system provides strong oversight, it also creates vulnerabilities.

Two Key Weaknesses Identified by Wolfgang Bliem

  1. Lack of payment blocking – Switzerland does not enforce payment blocking for unlicensed operators, allowing Swiss players to deposit funds with offshore sites easily.
  2. Lotteries’ monopoly on sports betting – The state lottery holds exclusive rights to sports betting, but its odds are often less competitive than those offered by offshore operators. During major events like the World Cup, Swiss customers go abroad for better value.

The Challenge of “Toothless Jurisdictions”

Eliasson also pointed to crypto casinos that exploit what he called “toothless jurisdictions”—jurisdictions with weak enforcement or low licensing standards. These operators use creative ad content that bypasses Facebook’s automated detection systems, and Europe’s patchwork of licensing makes it hard to verify claims. “The licence may come from somewhere else, and it can be hard to detect in that mess of jurisdictions,” he said.

Risks and Challenges: Can the Pilot Succeed?

Uncertain Outcome

Eliasson is realistic about the chances. “I’m not sure whether we’ll succeed, but I’m 100% sure we’ve succeeded with the first step,” he said. If the pilot falls short, Paf will “rework it and find something else.”

Potential Backlash from Heavy-Handed Regulation

Eliasson also warned that overly restrictive product rules—such as slowing games down or banning titles deemed “too risky”—could backfire. “People are still free to use the internet, so they’ll go elsewhere for the best product,” he said. “If politicians get too scared, we could easily end up with the reverse effect.”

Skepticism from Industry Peers

The announcement drew a muted response from the audience at the SBC Summit. “I don’t think they believed it. Normally you sue Facebook,” Eliasson remarked. The novelty of collaboration may raise questions about enforcement and long-term commitment.

Scaling the Model: What Happens Next

From Switzerland to Europe

Eliasson explicitly stated that if the pilot is successful, he wants to expand it to other markets. The hope is to set a precedent across Europe, where the black market is estimated to account for a significant share of online gambling activity.

The Role of Other Stakeholders

Paf intends to involve the Swiss regulator directly. “We want to connect Facebook with the Swiss regulator too,” Eliasson said. A multi-stakeholder approach could strengthen the model and encourage other platforms (e.g., Google, TikTok) to adopt similar verification processes.

Key Takeaways: What This Means for the Industry

Conclusion: A Bold Experiment Worth Watching

Paf’s decision to partner with Facebook rather than sue represents a pragmatic gamble in a high-stakes environment. With mycasino.ch generating over €100 million annually and holding a 30% market share, the company has a clear incentive to clean up its competitive landscape. By investing only time and dialogue—and by inviting regulators to the table—Paf is testing whether cooperation can outperform confrontation.

Whether the pilot succeeds or fails, it has already achieved something notable: opening a new channel of communication between a regulated operator and one of the world’s largest ad platforms. For an industry accustomed to legal battles, that alone is a step forward.