Paf unveils unique pilot project with Meta to fight unlicensed gambling

By jili tutorial · October 7, 2026

Paf and Meta Join Forces: A Landmark Pilot to Curb Unlicensed Gambling

Overview: A New Approach to an Old Problem

Unlicensed gambling remains a persistent challenge for regulated operators, regulators, and tech platforms alike. In a significant development, Nordic gambling operator Paf has announced a unique pilot project with Meta, the parent company of Facebook and Instagram, designed to share intelligence on illegal gambling operators. The move marks a departure from Meta’s past reluctance to address black-market advertising and could set a precedent for future cooperation between Big Tech and the gambling industry.

Paf, headquartered in the Åland Islands (Finland), reported record financial results in 2025. Rather than resting on its success, the company has taken a proactive stance by partnering with one of the world’s largest tech firms. The pilot was unveiled by Jesper Eliasson, Paf’s Chief Business Development Officer, at the SBC Summit last week. This article expands on the announcement, provides context, and explains the significance of the agreement.

The Pilot Project: How It Works and What It Aims to Achieve

Under the pilot, Paf will share specific information with Meta, including licence documents and URLs of both licensed operators and suspected unlicensed ones. The goal is to help Meta’s content moderation teams gain a clearer picture of what illegal gambling operators and affiliates look like—so they can be identified and removed more effectively.

Eliasson explained:

“The work starts shortly. The goal is to build a model in Switzerland that can then be scaled up to more markets.”

This phased approach allows Paf and Meta to test the effectiveness of data-sharing in a controlled environment before rolling it out to other jurisdictions. Switzerland was chosen as a starting point because of its well‑regulated gambling market and robust licensing framework.

Why This Matters: Bridging the Knowledge Gap

Tech platforms often struggle to distinguish between legal and illegal gambling content, especially when operators use complex shell companies or deceptive ad copy. By providing Meta with verified licence information and examples of unlicensed activity, Paf is essentially giving the platform a “translation manual” for the gambling ecosystem. This can reduce false removals (where legitimate ads are taken down) and increase accurate removal of black‑market ads.

Paf’s Motivation: Competing on a Level Playing Field

Eliasson articulated the operator’s stance forcefully:

“I don’t want to share the market with anyone who has no license, has not paid for the license or the compliance work, and who also has no responsible gaming measures in place.”

This sentiment reflects a broader frustration among regulated operators: they invest heavily in licensing fees, compliance, and responsible gaming tools, while unlicensed rivals evade these costs and can offer more aggressive promotions. Paf’s decision to collaborate with Meta is a strategic move to protect its own market position while also promoting safer gambling environments.

The Wider Context: Meta’s Troubled Relationship with Gambling Regulation

A History of Criticism from Regulators and Trade Bodies

Meta has faced heavy criticism for allowing unlicensed gambling ads to proliferate on its platforms. A particularly vocal critic is the Dutch trade body VNLOK, which is currently suing Meta over the issue. According to VNLOK, in the final quarter of 2025 alone, Meta displayed over 70,000 gambling advertisements on its platforms. Of those, 95% came from unlicensed operators. Alarmingly, less than 5% of those ads were removed.

Björn Fuchs, Chairman of VNLOK, expressed frustration at the SBC Summit:

“You can see how much advertising there is on Meta platforms. We have tried to communicate but they have only offered automated responses. We don’t see any improvement – in fact, it’s getting worse. Now is the time for them to uphold their responsibility.”

The UK’s Gambling Commission has also weighed in. Tim Miller, the Commission’s former Executive Director, recently criticised Meta’s inaction on the iGaming Daily podcast, highlighting a widespread perception that Big Tech has been slow to tackle illegal gambling.

Why Meta Has Been Reluctant to Act

Several factors may explain Meta’s past inaction:

Scale and complexity: With billions of users and millions of ads, manual review is impractical. Automated systems often fail to catch nuanced gambling content.
Legal liability concerns: Removing content incorrectly could invite lawsuits from legitimate operators.
Revenue considerations: Unlicensed ads still generate ad revenue for Meta, though the company has stated it does not want illegal operators on its platform.

What This Pilot Means for the Industry

A Potential Turning Point in Big Tech–Gambling Relations

The Paf–Meta pilot suggests that the tide may be turning. If successful, it could encourage other tech companies—such as Google, Twitter, or TikTok—to adopt similar data‑sharing agreements. More importantly, it signals that Meta is ready to invest resources in cleaning up its platforms, at least for a trial period.

Implications for Regulated Markets

Paf is actively preparing to enter mainland Finland’s soon‑to‑be‑launched regulated gambling market. Collaborating with Meta on this pilot not only enhances Paf’s reputation as a responsible operator but also demonstrates to Finnish regulators that the company is committed to combating the black market. For operators eyeing new regulated markets in the Nordics and beyond, this partnership offers a blueprint for how to work with tech platforms to protect their investments.

Challenges Ahead

Despite the optimism, significant obstacles remain:

Scaling the model: What works in Switzerland may not translate to larger, more complex markets like the UK or Germany.
Enforcement: Even with better data, Meta must be willing to act on it—and do so quickly.
Industry fragmentation: Not all operators will be as willing as Paf to share proprietary data with a Big Tech firm.

Conclusion: A Small Step with Big Potential

The Paf–Meta pilot project is far from a complete solution to the unlicensed gambling problem. But it represents a concrete, collaborative effort to bridge the gap between traditional gambling regulation and the digital ad ecosystem. As Eliasson acknowledged:

“I don’t know whether we will succeed, but we have taken the first steps.”

For an industry long frustrated by Big Tech’s inaction, those first steps are a reason for cautious hope. If the model proves effective, it could reshape how online platforms police illegal gambling content—and give licensed operators a fairer chance to compete.