International online gambling operators may no longer be able to operate in Switzerland, local media reported. The Swiss House of Representatives voted on Wednesday in favor of the proposed blockage of Internet access to real-money gambling websites that have not been licensed by local authorities.
The measure had previously been approved by the Senate. Discussions over the proposed block of international operators emerged once again in January. However, the effort, which has long been called for by domestic casino, betting, and lottery companies, lost some momentum after Swiss telecoms voiced certain opposition earlier this year.
Local Internet service providers argued that Swiss gambling operators would have to pay for the additional costs that would arise from the IP blockage, as their would be the ones to benefit from the implementation of such a blockage. What is more, they commented on the measure as one that has proved to be rather ineffective in other jurisdictions where it has been implemented, as there were numerous ways for players to access websites even though those were blocked.
Opposition was voiced on Wednesday, as well. Representatives of the Swiss People’s Party and the Greens pointed out yesterday that blocking international websites was not something that a democratic government would do. Despite the two opposing parties’ arguments, it seems that IP blockage will eventually be imposed.
The measure will benefit local gambling operators that have long been complaining about losing precious revenue to their international rivals.
Swiss lawmakers also made it clear on Wednesday that foreign operators will not be able to apply for licenses from local authorities.
Taxation matters were, too, discussed by the government, although legislators seem to have failed to reach an accord on how winnings from gambling activities would be taxed, if taxed at all. The Senate proposed for sports betting and lottery winnings of up to CHF1 million to remain untaxed. On the other hand, the House of Representatives called for all winnings to remain tax-free.
The Swiss government has around two weeks to solve the pending issues related to the new iGaming regulations. Gambling-related matters are scheduled to be discussed on March 15. And the government’s spring legislative session is set to run to March 17.
