Q.& A. | Lars Porko, Former C.E.O., PAF

Lars Porko, the 62-year-old former head of Ålands Penningautomatförening, studied economics at Finland's Turku University before joining PAF in 1974.

PAF has been operating gambling on Åland Islands, a Swedish-speaking semi-autonomous province of Finland, since the late 1960s as the sole concessionaire. In 1999, it was given permission by the Åland government to launch online gambling.

Mr. Porko and PAF are perhaps best known by the gaming industry media for their ongoing dispute with the Finnish mainland over Internet gambling.

At the heart of the near 10-year conflict is whether, by advertising and offering its services to Finnish residents, PAF had organized a lottery on Finnish soil without a license.

In 2005, the Finnish Supreme Court found Mr. Porko and two other PAF employees guilty of "lottery offenses" and ordered each to pay a fine. And in January of this year, Finland's Interior Ministry threatened -- but ultimately didn't take -- further legal action.

Mr. Porko, who on May 1, 2009, stepped down from his post, agreed to answer questions by e-mail about his distinguished 36-year career with PAF.

How did you get in touch with the gambling industry?

After finishing my school 1966 my wallet was empty. I needed to get a job beside my daytime job as an office clerk. So I got a job as a croupier at our local casino during evenings.

Who got the idea to start with PAF, and when did it start?

Paf was founded 1966 by seven non-profit associations who still represent PAF's formal owners. From 1967, PAF have been actively running slots and table games on cruise ships and on Åland Islands.

Maybe I can count my lawyer bills as marketing initiated and done by the Finnish authorities.

When did PAF start with remote betting?

December 1999.

What products does the company offer?

Slots, bingo, lotteries, casino, dice, poker, betting and skill games.

Could you tell last year’s turnover per product and by region?

Last year Group turnover was 106 million euros. Around 75 percent was turnover from Internet games, and the remaining share was from our land and ship operation. Most of the turnover is from our local markets around the Baltic Sea and Scandinavia.

Which type of distribution possibilities does PAF have?

On Åland Islands, onboard cruise liners and ferries, and since 1999, the Internet.

How many unique subscribers does PAF have?

Approximately 500,000.

You had to always fight the Finnish authorities, and never gave up. In short, what were the differing opinions?

They dislike competition and I believe in the right for people to decide by themselves where they use their gaming money.

Several times they tried to get you in prison . . .

Yes, you shall never take on your best suit when you are fighting for what you believe is the truth . . . it is a dirty fight.

Do you have an indication how much you spent over the years on lawyer costs?

At least millions I think, but on the other hand I have not spent so much on advertisement. Maybe I can count my lawyer bills as marketing initiated and done by the Finnish authorities?

You stepped down as C.E.O. this month, and handed over the helm to Anders Ingves, a former C.E.O. of a shipping company . . . a shipping company? Were you involved in this choice?

Yes, in fact Anders was a very successful C.E.O. for Birka Cruises. PAF is selling dreams and short pauses to our guests. They like to take a short cruise and visit our live games onboard or at our casino at Åland. Our goal is to entertain all of our subscribers and players not only via Internet but also give them a possibility to visit our lovely Island as guests to PAF for live tournaments, for good food and entertainment, so PAF is actually in the entertainment industry!

In France there is a betting liberalization/privatization going on, and in Denmark a deregulation is taking place. You will continue with the company in a consulting role until yearend. Would you advise your new skipper to enter France or Denmark -- or both?

Absolutely -- yes, I think he is already on the road. PAF has a very strong ambition to be more recognized on the international battlefields.

When do you foresee a free and open cross border betting market in the whole of Europe?

Also, I think all have to prepare to pay a higher gaming tax as a price to finally get a more open market. I think it is worth to pay back up to 15 to 20 percent, to a player’s home state, for the right to operate cross-border within Europe in a well-regulated market.

I love journalists.

What was for you the most comical moment in your betting arena?

PAF printed our own currency at Åland Island, 10, 50 and silver "daler coins." One daler was equal to one Finnish markka. The intention was to use dalers as a local currency beside the Finnish markka and as playing tokens in our casinos and slot machines and as souvenirs to tourists and collectors.

The Finnish National Bank very strongly disliked that idea and ordered us to immediately take all coins out of circulation and also send the police forces to try to take our money.

Our answer was of course ej, njet and no! That battle become then a big media hurricane for at least a year and it took almost three years before the battle finally was over. The National Bank decided to “give us an offer we could not refuse” and we got a big one-time profit for our daler when we sold them, and the bank melted all coins and printed new markka instead.

Our National Bank was afraid that our daler could hurt the whole Finnish markka monopoly and currency, and for that reason they paid us very well to stop. They were really afraid that our small dalers should hurt the whole Finnish currency monopoly!!

It was later described as my first attempt to break a monopoly, even if I had no attempt to that. And now, 20 years later, I am in the same situation but now we are fighting against old gaming monopolies, and the Finnish markka is since years ago dead, buried, forgotten and changed to euro.

What is your biggest passion or hobby besides your professional work atmosphere?

Making good food, wine, fishing, and travels.

Besides journalists, what irritates you the most in the gambling industry?

I love journalists. You have to do that because they are always just upon your skin in our industry. I dislike all old monopolies and hindrances we still have around us when we are trying to give our players a good time and entertainment.

Christopher A. Krafcik contributed reporting.