Regulated

The Swiss Federal Gaming Board (“SFGB”), based on the Money Gaming Act (“MGA”), and the Swiss Gambling Supervisory Authority (“Gespa”) regulate, advise, and provide guidance to individuals and business that offer gambling in Switzerland.

Since 1 January 2019, casino games, lotteries, sports betting and skill games have been regulated by the MGA and the Ordinance on Money Games (“MGO”). These laws generally regulate money games in which there is the chance to win a prize or other monetary advantage in return for a stake/monetary transaction to enter the game. The MGA distinguishes between casino games, lotteries, sports betting and skill games. Lotteries, sports betting and skill games can be categorised into large-scale (executed automatically, intercantonal or online) and small-scale games (neither automated, intercantonal nor online) (Art. 2 MGA).

Casino gaming and Poker are namely regulated by the SFGB, whereas Bingo, Betting, Lotteries and Social/Skill arrangements are regulated by the Gespa.

Market size

The gambling sector generates a gross annual turnover (sum of all stakes minus winnings paid out to players) of around CHF 2.05 billion. Of this amount, CHF 1.17 billion is generated by the intercantonal lottery companies (Swisslos and Loterie Romande) and CHF 880 million by the casinos. The organisers of intercantonal, automated or online games of skill generated gross gaming revenue of CHF 20.8 million. This figure does not include revenue from small-scale games which is regulated by the cantons.

Competitive landscape

Swiss law distinguishes between terrestrial casino licences and the extension of the terrestrial licences for online gaming, lottery and betting licences and licences for small games (not executed automatically, online or intercantonal).

Licensed land-based casinos can apply for an extension of their licence to offer online gaming. Licences for (online) betting and lotteries are only granted to Swisslos and Loterie Romande (two state-related companies). Foreign providers cannot apply for a licence and their websites are blocked (DNS-blocking) by the Swiss authorities if the provider does not block the access to the games from Switzerland itself.

On November 29, 2023, the Swiss Federal Council (“SFC”) awarded casino concessions for the years 2025 to 2044 in 22 out of 23 zones. The SFC followed the proposal of SFGB and accepted 22 applications, divided into ten Type A and twelve Type B licenses. Existing casino operators in the zones Baden-Aarau, Basel, Bern, Berner Oberland Ost, Geneva, Fribourg, Jura, Lucerne, Lugano, Locarno, Mendrisio, Montreux, Neuchâtel, Nordbünden, Südbünden, Sarganserland, Schwyz, St. Gallen, Valais and Zurich will be allowed to continue operating their existing casinos beyond 2024. In the newly created zone Winterthur, the SFC accepted the application submitted by Swiss Casinos Winterthur AG. In the likewise new zone Lausanne, the SFC granted a concession to Project Casino Prilly AG.

The casino landscape from 2025 onwards looks as follows.

The SFC also approved the extension of concessions for online casino games to twelve applicants. The supply of and competition for online casino games is therefore increasing.

Finally, the SFC has commissioned SFGB to draw up a report on the casino landscape. On the basis of this report, the SFC will reassess the overall situation in 2028 and decide how to proceed, including with regard to the concession in the zone Schaffhausen; the SFC has not granted a concession for the zone Schaffhausen.

The reallocation of casino concessions is final and the SFC’s decision cannot be appealed.

Localisation

There are no restrictions on payment methods, with the exception of crypto payments (which are currently not allowed).

There are no restrictions on marketing channels. However, marketing services are only permitted for licensed operators. In addition, gambling operators may not advertise in an intrusive or misleading manner. Advertising must not be directed at minors or prohibited persons.

Top Key Attractions and Challenges

Attractions
• Foreign online gambling or betting operators may not apply for a licence and enter the Swiss market independently (with the exception of skill games). Though, foreign gambling or betting operators may get access to the Swiss market by entering into a partnership with a local terrestrial licence holder (art. 46 MGA, art. 31 MGO).
• B2b providers do not need a licence to be able to supply gaming operators with technical means or games.
• Swiss players are very keen on gambling.
• Swiss players may continue to participate legally in online money games provided by foreign online gambling or betting operators (even if the operators are blocked). The circumvention of the blocking measures issued by the authorities is also not punishable by law.

Challenges
• Highly saturated and regulated market.
• Strictly regulated and regular compliance enforcement.
• To protect the Swiss market and to prevent foreign online gambling or betting operators to offer their services into Switzerland, art. 86 et seq. MGA provide that Swiss authorities may blacklist and block websites of foreign online gambling or betting operators without any license (IP blocking). Starting 3 September 2019, the Swiss supervisory authorities SFGB and Gespa published their blacklists with domain names of foreign online gambling or bet-ting operators. These blocking measures constitute administrative measures and are directed to the Swiss internet access providers (“ISPs”). They affect foreign online gambling or betting operators indirectly as their domains are no longer accessible with a Swiss IP-address.
• The Federal Supreme Court decided (2C_336/2021, 18 May 2022; 2C_91/2022, 18 November 2022) that the blocking measures mentioned above (IP blocking and blacklisting) are conducted in compliance with the MGA and the Swiss Constitution.
• In its latest decisions (2C_90/2022, 30 January 2023; 2C_87/2022, 30 January 2023), the Federal Supreme Court decided that the foreign online gambling or betting operator needs to actively ensure that no player with Swiss domicile can register on the website in order to be removed from the blacklist. The addresses of the players need to be actively verified by the operator.