The Swiss government is considering the legalization of online gambling after legislators proposed a new bill, which calls for the country’s 21 brick-and-mortar casinos to be allowed to apply for online gaming licenses, local media reported.
Online casino games are currently illegal in the country. The Swiss Casino Federation received the proposed legislation quite well. Members of the federation noted that the Swiss gambling regulations need to be overhauled as the industry has been suffering for quite some time now. Casino revenue has dropped more than 30% since 2007. What is more, gambling venues across the country have been losing substantial amounts of money to foreign gaming sites and illegal gambling clubs.
According to the Swiss Casino Federation, due measures need to be taken in order for the licensed land-based casinos to become competitive enough. Representatives for the federation also noted that the proposed legislation needs to be adopted as soon as possible. However, local media reported that the bill is planned to come into effect in 2019.
If enforced, the proposed law will also allow for low-stakes poker tournaments to be organized outside the 21 licensed casinos. Under the bill, such tournaments will have to be approved by cantonal authorities first, initial bids will have to be kept low, and the total stake will have to be returned to players.
However, lawmakers will have to determine what the term “low stake” means exactly as this has not been previously specified. Commenting on this, poker players from around the country said that stakes should not be too low as this may result in cheating and illegal activities.
The proposed legislation also calls for certain changes in the current taxation of gambling winnings to be implemented. At present, players who have won money by playing at local casinos are exempt from taxes. However, winnings from sports betting and lottery games are still taxable, which many consider quite unfair. Under the proposed legislation, all gambling customers should be exempt from taxes on their winnings.
Some voiced concerns that such an exemption would result in federal and cantonal coffers losing millions of Swiss francs every year. Yet, lawmakers expressed hopes that the new regulations would make gambling attractive enough to draw more customers.
At present, the amount of CHF336 million in casino gambling taxes is annually contributed to the country’s welfare system. Taxes from sports betting and lottery games are used to fund various public projects.
The bill also discusses the implementation of measures for the prevention of money laundering and other related illegal activities. In addition, if the proposed legislation is enforced, cantons will be required to provide gambling customers showing symptoms of addiction with the necessary treatment.
