Proposal Submitted to End Swiss Online Gambling Ban

Federal government in Bern has proposed a new bill that would end the Swiss online gambling ban, legalize online casinos and private poker, and exempt all winnings from tax.

Swiss online gambling ban could be lifted
Low-stakes poker would be legalized
Gambling in Switzerland would become tax-free!

While online gambling is currently illegal in Switzerland, the ban is almost impossible to enforce, as there are a number of foreign online casinos that Swiss players can readily access via the internet. The lack of legal online casinos in Switzerland has caused the Swiss casino industry to lose CHF 300 M per year in profits to these same foreign internet gaming sites. The bill, which was submitted to the Swiss parliament yesterday, would permit the 21 casinos to apply for permission to set up their online gaming services and get in competition with the non-Swiss casinos.

The Swiss Federation of Casinos welcome the bill that would uplift the Swiss online gambling ban, but want the new legislation to be enforced sooner than 2019 if passed. The federation said in a joint statement: “Over the past few years Swiss casinos have been under extreme pressure… The new law on gambling for money should take into account this evolution [in the industry] and create the conditions to allow Swiss casinos to be competitive.”

Legislation would uplift Swiss online gambling ban, low-stakes poker ban

In addition to ending the Swiss online gambling ban, the new bill allow low-stakes poker to be played outside of casinos. This would replace existing law that bans privately-run money-stakes poker tournaments. Organizers would be obliged to get approval from cantonal authorities, games would have to have low initial bids, and the total stake should be given back to players. What counts as ‘low stakes’ is still unclear, having not yet been specified by authorities, and the figure could make the difference.

“The amount must relate to reality…If the limit is too low, say between CHF 30 and CHF 50, that will reignite cheating and clandestine activity,” an anonymous poker player told Swiss newspaper Le Matin.

The introduction of low-stakes poker—with a reasonable figure—is welcomed by socialist MP Mathias Reynard, who’s been a longtime supporter of the legalization of poker tournaments. Says Reynard: “Poker without a money stake is not the same.”

End of Swiss online gambling ban would also lead to introduction of tax-free gaming

According to current Swiss gambling laws , money won by gambling in casinos is exempted from tax, while winnings from lotteries and bookmakers are taxable. The bill that proposes to end Swiss online gambling is also hoping to equalize this unfair situation and exempt all gamblers from paying tax on any of their winnings, regardless of how they won them.

This new law, while good for players, could result in federal and cantonal losses of CHF 30 M and CHF 90 M respectively. However, authorities are hoping that these new, more relaxed rules would make gambling in Switzerland attractive enough to make up for the huge losses through taxes on casinos themselves. They would also get additional revenue from lotteries.

In addition to a Swiss online gambling ban lift and the introduction of low-stakes poker and tax-free gaming, the new bill would also: allow for the tightening of security to prevent money laundering and fraud; would reinforce rules to protect players from gambling excessively; would make cantons obliged to offer counseling and treatment for gambling addiction; and give casinos the ability to ban people from certain games if necessary.