Gambling in Switzerland is not regulated in the laissez-faire manner found in some jurisdictions. Instead, regulations are designed not just to permit but also to control games that involve money. The main objectives of Swiss gambling regulations are to protect consumers, reduce the risk of gambling addiction and money laundering, and ensure that gambling revenues are used to benefit the public. This system of regulating gambling was substantially reformed and modernised by the Federal Act on Gambling (Gambling Act or Money-Games Act / Geldspielgesetz) in late 2017-2018, which came into effect on 1 January 2019.
This was a consolidation of previously separate regimes into one federal-plus-cantonal framework for land-based gambling casinos, lotteries, sports betting, games of skill, and online gambling.
Key policy aims included:
- Protecting players (particularly minors, persons at-risk of gambling problems)
- Addressing fraud, money-laundering and manipulation of sport
- Providing integrity, transparency and safe play of gambling
- Directing net revenues from gambling to social, cultural, sports and other public-interest causes.
With that context in mind, we now turn to the details of the regulatory framework.
Regulatory Framework
Constitutional and Legislative Basis
The Swiss approach to regulating gambling stems from federal constitutional law. In 2012, Swiss voters approved a constitutional article requiring games of chance to be regulated, with the dual goals of social protection and the redirection of revenues to the public good.
At the federal level, the main legislation is the Federal Act on Gambling, also known as the Money Gaming Act (MGA), adopted in 2017, coming into effect on 1 January 2019. This law introduces several changes to current gaming regulations.
Subordinate ordinances accompany the Act, such as the Gambling Ordinance, as well as cantonal implementing legislation.
Thus, the legal architecture is multi-layered:
Constitutional Mandate → Federal Act + Ordinances → Cantonal Regulation.
Key Features
The term “money games” (“Geldspiele”) is broadly defined as games of chance or skill that involve consideration of a stake and a prize.
The law differentiates between large-scale games (automated, online), inter-cantonal and small-scale games (not automated and local).
Only approved/licensed games can be offered; unlicensed operators offering games in Switzerland may be subject to access blocking.
Gambling revenues are earmarked for public benefit, such as pension funds or social causes, and not simply private profit.
Why Reform Was Needed
Prior to the 2019 regime, the legal situation was fragmented. Technology changed the landscape (internet gambling), and there were concerns over cross-border unregulated offerings, addiction, and money laundering. The 2018 vote and the 2019 implementation of the new framework had been intended to modernize the regulation, bring online gambling into scope, strengthen controls, and channel revenue to public benefit.
Regulatory Bodies and Supervision
In Switzerland, the regulation of gambling is in the hands of both federal agencies and inter-cantonal and cantonal regulators. Key bodies include:
Swiss Gambling Supervisory Authority (Gespa): An inter-cantonal institution responsible for licensing and supervision of large-scale lotteries, sports betting and skill-games that are intercantonal or online.
Swiss Federal Gaming Board (SFGB)/ESBK( German): It is the federal regulator for casinos (land-based) and the online extension thereof.
Cantonal Authorities: many aspects of small-scale games, local licensing, and social-responsibility measures are regulated at the cantonal level in coordination with federal regulations.
These bodies work together to monitor and supervise the market, ensuring that licence-holders comply with the obligations under their licences. That is, player protection, AML, and combating illegal/unlicensed operators (including cross-border offers) through blocking and enforcement.
Classification of Gambling Activities
To make sense of the regulatory treatment, it’s useful to see how gambling is classified in Switzerland.
Land-Based Casinos (“Casino Games”)
These are large-scale forms of gambling, e.g., slot machines, table games like roulette, poker, blackjack, and others, offered in physical casinos. Casinos have specific licenses under the MGA, namely type A or B, and are subject to federal regulation plus additional cantonal oversight.
Lotteries and Sports Betting
These include lotteries and sportsbetting operations. The law considers them as large-scale if they are automatic/online/inter-cantonal. Liquidity, structuring and distribution across the cantons matter. Current policy has limited the number of licenses, especially online.
Skill Games / Promotional Games
Games of skill or promotional games may fall into various categories of scale and, therefore, may be regulated differently. If they constitute a stake and a prize and are automated/online/inter-cantonal, they are considered large-scale; if small-scale, they are local tournaments, non-automated, and they’re regulated at the cantonal level.
Online / Remote Gambling
One of the major changes in the 2019 Act relates to the express regulation of online/remote gambling (“digital money games”). Providing online casino, betting or lotteries to Swiss residents requires Swiss licensing; such offerings by foreign unlicensed operators are banned and subject to access blocking.
By structuring the market in this way, Switzerland seeks to control risk, concentrate oversight, and ensure that revenue flows remain within the country.
Licensing and Market Access
Land-Based Casino Licensing
Under the MGA, an operator requires a federal license for a physical casino. The number of licenses is limited, e.g., the Federal Council determines how many “A-type” casinos (with no cap on stakes/games) may exist and distributes them among regions.
The length of a license is usually up to 20 years, renewable. The license is not freely transferable.
Casinos can apply for the extension of their license to operate online gambling services, subject to fulfilling the required standards.
Lotteries and Sports Betting Licences
Large-scale lotteries and sports betting operations must apply through Gespa. In practice, only a limited number of operators hold national licences in Switzerland for online lotteries and sports betting, such as Swisslos and Loterie Romande.
This licence covers the organiser’s licence plus individual game authorisations. The number of operators is limited, and the license may be restricted in time.
Online/Remote Operator Requirements
For online casino games, operators must hold a Swiss licence (or an extension of a Swiss land-based casino licence). Foreign operators can’t normally operate directly unless they set up a Swiss subsidiary or partner with a Swiss casino license holder.
Key conditions:
- Good reputation of the applicant, including that a foreign provider has not illegally targeted Switzerland during the past five years.
- Player verification, which means Swiss residents aged ≥18 years and not declared banned may take part in Swiss-licensed online games.
- Account and money flow when winnings must be paid to accounts in the player’s name; transfer to other persons is prohibited.
- Access to unlicensed sites will be blocked: The legislation allows DNS-blocking of foreign providers and placing them on the blacklist if they are non-compliant.
Small-Scale/Local Game Licences
For smaller games such as charity lotteries, local bingo, small tournaments and others that are not automatically executed, not online and not intercantonal, licences are granted by the cantons under easier regulations. These are subject to cantonal laws, and compliance requirements might be lower.
Key Licensing Challenges and Limitations
The limitation of the number of licenses, most of all, online lotteries/sports betting, means that entry into the market is constrained.
A foreign operator must form an association with a Swiss entity or open a Swiss subsidiary, adding complexity.
Compliance burden is high due to player protection and AML, raising the barrier to entry. Enforcing involves blocking access from abroad, and bypassing via VPNs remains problematic.
Taxation and Revenue Allocation
Operator Taxation / Levies
Operators pay taxes or levies on gross gaming revenues, with variations depending on the type and size of the game, whether casino, online, or lottery. For example:
For terrestrial casinos: the basic tax rate is 40% of gross gaming revenue up to CHF 10M, and the federal government can raise it up to 80%.
For online gaming, the rate is 20% of GGR up to CHF 3M, again with a possible uplift to 80%
Player Taxation
Winnings from licensed games-terrestrial casinos, online casino games, and lotteries/sports bets are tax-free for the player.
Winnings from an unlicensed foreign casino are fully liable for tax payment.
Revenue Use / Public Benefit
One of the key policy goals is that gambling revenue should accrue to the public good rather than private profit alone. In that spirit:
- Casino tax revenues feed, for example, Switzerland’s pension system “AHV/IV-Fonds”.
- Net revenues from lotteries and sports betting are channelled into culture, sport, recreation, social projects, and charitable causes.
Why This Matters
Taken together, high tax/levy rates and public-benefit allocation demonstrate Switzerland’s approach to gambling: it shall be permitted but controlled, and the revenue derived therefrom shall be directed toward societal benefit rather than unfettered private gain.
Player Protection, Social Responsibility & AML
Social Responsibility / Problem Gambling Prevention
Player protection is central to Swiss regulation. Under the MGA and related regimes:
Operators-in casinos, as well as online game providers-must provide a “social concept” that includes the following: information to players on risks, self-exclusion mechanisms, deposit/stake or loss limits, early identification of at-risk players, staff training, collection of data to evaluate effectiveness.
Advertising restrictions: Commercial advertising for games of chance may only take place under strict conditions. It cannot be directed at minors or at persons subject to an exclusion ban, and it may not be obtrusive.
The inter-cantonal authority Gespa publishes annual reports on the effectiveness of protective measures.
Anti-Money Laundering (AML) and Integrity
Gambling can be a means of money laundering or manipulation, and Swiss regulation addresses that:
- Because of the AMLA, casinos are considered financial intermediaries; therefore, they must implement measures such as customer identification, due diligence, report on suspicion, and comply with AML regulations.
- For online and automated games, the ordinance provides for further specification of AML requirements for providers of large-scale games (lotteries, betting, skill games) carried out automatically or online.
- Measures against match-fixing/competition manipulation: Gespa plays a role in detecting manipulation of sports events related to betting.
Together, the AML + social responsibility + market access obligations create a high-compliance environment for operators.
Enforcement, Sanctions and Illicit-Market Controls
Sanctions for Non-compliance
Serious consequences may be imposed on operators for non-compliance with the MGA, its licenses, or the provision of services without a license:
- Fines up to CHF 500,000 in cases of prohibited promotion of games.
- Licence revocation, withdrawal of authorisations and forfeiture of profits.
- For unlicensed online operators offering to Swiss players: technical blocking measures, such as DNS blocking, and criminal proceedings.
Blocking Foreign Operators
A key enforcement tool is access blocking: ISPs may be required to block domains of unlicensed foreign operators targeting Switzerland.
Casinos, lotteries, and relevant providers will only admit Swiss residents, verifying age and identity, as one way to reduce the risk of bypassing jurisdictional restrictions.
Track Record
Regulatory authorities have been active: for example, during 2023, the Swiss authorities opened more than 100 new cases and launched 169 criminal proceedings against illegal gambling.
This suggests both regulatory seriousness and the continuing challenge of unlicensed operators.
Recent Trends and Possible Reforms
While the major reform – the MGA – entered into force in January 2019, developments continue:
Online Licence Rollout
The regime envisages that online casino licences will be available only to land-based Swiss casino operators during a transitional period.
As of the end of 2023, the Federal Council granted licences for online gambling for the period from 2025 to 2044.
This staged rollout means further regulatory evolution is ongoing.
Crypto, Blockchain and Emerging Technologies
Emerging trends such as cryptocurrencies and blockchain gaming raise potential regulatory issues. Existing legislation does not strongly prohibit the use of virtual currencies in gambling, but indeed, industry commentary suggests future regulation may evolve.
Possible Further Liberalisation
Market-watchers note that, even though the regulation is modern, the restriction on the number of licenses, especially regarding lotteries/sports betting, may be pressured for liberalization in the medium term.
Social-Effectiveness Assessment
The authorities (Gespa) publish annual reports on the effectiveness of protection measures, revenue allocation, and market developments- indicating a focus on measurement and continuous improvement.
Case Study: Online Gambling Access and Blocking
An interesting aspect of the Swiss regime is how it handles online foreign gambling services. Key points:
Since 1 January 2019, only Swiss-licensed games may be offered to Swiss residents; foreign non-licensed operators cannot market services to Switzerland.
Operators must verify players as Swiss residents and age-qualified; winnings are to be paid to a player-named account.
Foreign providers targeting Switzerland without a license might face DNS blocking by ISPs and be included on a blacklist.
For example, the Swiss regulator, Gespa, recently filed a criminal complaint against a blockchain-based platform offering gambling services without a Swiss licence.
This indicates that the regulatory authorities not only establish licensing but also pursue effective enforcement and blocking strategies for illicit market players.
The Swiss model shows how a small country with strong federal structures can adapt to the growing development of Internet gambling. By demanding Swiss licensing, market access control, revenue allocation to the public good, and placing an emphasis on protecting players and society, Switzerland has carved out a path between prohibition and uncontrolled liberalization.
It remains a dynamic field, nevertheless: technology, consumer behaviour and regulatory pressures are still evolving. For participants, such as operators, players, investors, and policymakers, there is a need to stay up to date with licensing conditions, compliance obligations, and the monitoring of social effects.
