Switzerland Legalizes Online Gambling

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Switzerland's government has just passed a brand new Money Gaming Act that ousts 1998's Gambling Act and the obsolete Lotteries and Betting Act from 1923. This was done in an effort to revitalize the gambling industry as well as digital economy in this central European country. This legislation has passed final votes in Swiss parliament. However, certain youth and non-government organizations are strongly opposed and are scheming a state-level referendum.

The new Money Gaming Act presents a massive change in the way gambling operators will function and will signal a huge turning point for the industry. Some of its acts concern land-based and online sectors' provisions and, most notably, it fully covers iGaming as a legal service for the first time – even though there was no prohibition per se as foreign operators were still able to target Swiss players – but now they might be taking a back seat. Now that online gambling will be legalized, this branch of industry will be reserved for local operators with a land-based presence and those licensed locally (which could also encompass foreign operators). Another amendment in this new Act is that Swiss internet providers will be obligated to block local players from accessing foreign gambling sites – a pricey service that will be compensated to providers by the government. International operators will still be allowed to form partnerships with local ones, but will not be green-lighted to enter the Swiss market alone. Furthermore, lottery winnings will be taxed only if they surpass the 1 million Swiss franc mark. Land-based casino winnings will keep being untaxed like before. Also, this new law allows for smaller poker tournaments to be organized outside casino venues.

There are those who oppose this bill – particularly the part with Switzerland’s internet operators being forced to block the digital passageways to international gambling and betting sites. The Green Liberal Party, Free Democratic Party and Swiss People's Party see this as a violation of freedoms on the internet and are planning to set up a country-wide referendum against this legislation.

According to the country’s laws, in order for the referendum to be held, 50,000 citizen signatures must be collected! The petition began on October 10th and these organizations will have 100 days to amass the number of signatures needed for referendum to be organized.

What is your take on this radical shift in the gambling landscape in Switzerland? Drop us a line in the comments section below!

Source:

“Switzerland online gaming legislation passes final vote; might face referendum”, Lanter Alex, worldcasinodirectory.com, October 10, 2017.