Online casinos in Switzerland - what is legal and what is not?

Online gambling has been legal in Switzerland since 2019 - this has opened up a way for numerous providers who previously operated in a legal grey area to offer their services to Swiss players without legal restrictions. However, with reservations, as the legal operation of an online casino in Switzerland requires a Swiss licence - and this is anything but easy to obtain.

In addition, there are numerous restrictions that apply without such a licence. Although these primarily serve to protect players, they sometimes restrict the diversity of the offer to such an extent that some Swiss players still prefer to try their luck at an online casino with a foreign licence.

So what will the legal situation of online casinos in Switzerland look like in 2024 and how can Swiss players best navigate through the regulatory jungle in order to not only have as much fun as possible, but also be on the safe side?

Legal framework and legislation

The basis for all legal framework conditions relating to gambling in Switzerland is the so-called Gambling Act. This has been in place since 2017 and was updated in 2019 to allow online casino providers in Switzerland to operate legally in Switzerland. The Gambling Act primarily sets out the framework conditions for the operation of gambling services.

Authorised games

The Swiss Gambling Act distinguishes between three different categories of gambling. Who is authorised to operate these types of games is precisely defined:

• Table games: Games such as roulette, blackjack, poker or baccarat may only be legally operated by casinos. Since the law was amended in 2019, this has also been possible online. An exception to this is so-called "small poker tournaments" - these may also be held outside casinos, provided a cantonal licence has been obtained beforehand.
• Lottery and betting: In this category, a distinction is first made between local sports betting and small lotteries and larger games and lotteries. The latter may only be offered by Swisslos and Loterie Romande. Only offers that do not extend beyond one canton may also be operated by smaller companies. Betting on eSports events also falls under this regulation and is therefore generally legal in Switzerland.
• Games of skill: This category includes gambling machines, for example. This type of game may also only be operated by Swisslos, Loterie Romande or licensed casinos. There is an exception here if the game of skill in question is neither automated, intercantonal nor online. In this case, the game can be operated by anyone and without legal restrictions.

What changed for online casinos in 2019?

In 2019, the Gambling Act was expanded to the effect that all of its framework conditions were also made applicable to online casinos. In plain language, this means that online casinos can now be operated legally in Switzerland.

However, there is one major restriction: only those who already have a land-based casino in Switzerland are eligible to obtain an online gambling licence. Popular international online casinos that would also like to gain a foothold in the Swiss market are therefore still unable to offer their services directly to local target groups.

However, this is not a particular restriction for Swiss players, as there are now enough Swiss casinos that have decided to launch their services online and have them licensed accordingly.

What is the situation with crypto casinos in Switzerland?

The legal situation is somewhat more difficult for Swiss players if they want to play legally with their crypto assets. This is because the Swiss Federal Gaming Board (SFGB) has put a stop to the use of cryptocurrencies in the gambling sector. On the one hand, this is justified by the fight against money laundering - on the other hand, this is probably also due to the lack of regulation of the crypto market to date.

Taxes and gambling in Switzerland

Compared to neighbouring countries, Switzerland is very liberal when it comes to the taxation of gambling winnings. This is because they are generally tax-free. However, online gambling winnings are a small exception here - these are taxable, but only if the winnings amount to at least CHF 1 million.

Player protection and prevention

A key aspect of the Gambling Act in Switzerland is the protection of players from the negative effects of gambling. This includes various measures that both online and land-based casinos must implement:

• Player barring system: all licensed casinos are obliged to operate a player barring system. Players who show signs of problematic gambling behaviour or who request a ban are excluded from participating in gambling. This ban can apply to both land-based and online casinos and is recorded in a national register.
• Responsible gaming: Online casinos are obliged to provide their players with guidance on responsible gambling. This includes information on gambling addiction, self-tests to assess one's own gambling behaviour and information on advice centres and support services.
• Stake and loss limits: Players can set individual stake and loss limits in order to better control their gambling behaviour. These limits serve to limit financial losses and minimise the risk of gambling addiction.
• Protection of minors: Access to online casinos is strictly regulated in order to protect minors from the dangers of gambling. Casinos must ensure that only persons of legal age have access to their games, which is guaranteed by comprehensive age verification procedures.
• Advertising restrictions: Advertising for games of chance is subject to strict rules in Switzerland. It must not be targeted at minors, must be designed responsibly and must not make any misleading promises. In addition, information on responsible gambling and offers of help must be clearly recognisable.