Online gambling law and regulation in Switzerland

Footnotes

[1] With effect from 1 January 2019, Switzerland’s new Federal Act on Money Games (“AMG”) entered into force. The AMG applies to all kinds of online real money games, including variations of betting, skill games and card games. Under the AMG, online gambling is permitted, however the organiser must obtain a Swiss licence. Online casino licences were available only to existing Swiss land-based casino operators for the first six years after the entry into force of the AMG (2019 to 2024). For the next 20 years, there was a new call for tenders for the limited number of licences. Anyone was able to apply, including providers from abroad. They could do this via a subsidiary domiciled in Switzerland or via participation in a Swiss casino operator. The AMG provides for the further requirements of good reputation, proper business conduct, independent management and sufficient funds of legitimate origin. At the end of 2023, the Federal Council granted licences for gambling operations for the period from 2025 to 2044. Gambling is now permitted in casinos at 22 locations in Switzerland; twelve casinos are allowed to offer online money games.
 

[2] According to the AMG, online lotteries, online sports betting and online skill games are large-scale games for which a permit of the so called Gespa (Swiss Gambling Supervisory Authority) is mandatory. As regards lotteries and sports betting, the number of permits is limited. Currently, they may be legally operated in Switzerland only by the two existing licensed Swiss operators Swisslos and Lotterie Romande; additional licences are not available. Betting other than sports betting is only permissible if the specific betting qualifies as a casino game i.e. not more than 1,000 players can participate, and the organiser must be in possession of a Swiss casino licence.

Games of skill as well as lotteries are exempted from the AMG and thus from the licence requirement if they (i) are carried out for a short period of time in order to promote sales, (ii) do not pose a risk of excessive real money gambling, and if (iii) participation is possible either at no charge or by purchasing goods or services at prices that are in line with the market prices.

To ensure compliance with Swiss law (especially regarding the protection of players and the payment of levies) an international provider who is interested in an online presence in Switzerland has either to establish a Swiss subsidiary or to partner with a Swiss licensee. In addition to all other requirements, foreign providers have to show that they have not actively targeted Swiss players from abroad in the past five years (requirement of “good reputation”). The access to online games of foreign providers without a proper licence will – if necessary - be blocked with measures to be implemented by internet access providers (geo blocking).

Last updated: April 2023