Why Switzerland revised its Online Gambling Laws
Posted by Harry Kane on Wednesday, October 25, 2017
Given the progressive and relaxed nature of Switzerland, you would think that this was one country that would have fully embraced online gambling.
Until recently, however, this was far from the case, with the country continuing to be governed by archaic laws from 1923 and 1998.
Fortunately, a bill has finally been passed to upgrade the legislation in Switzerland, bring the market in line with the rest of Europe. It has also unlocked a potentially huge revenue stream, and one that can be reinvested into the economy in the future.
What is the Bill and what does it mean?
The new legislation will be known as the Money Gaming Act, which will subsequently govern both on and offline gambling in Switzerland. This will immediately remove a great deal of the ambiguity that has historically surrounded virtual gambling in the banking capital of Europe, as while previous laws did not expressly prohibit online activity they also did not provide any regulatory guidance of operators.
As a result of this, Swiss-based operators will be able to quickly establish themselves and target national players, creating a lucrative industry that will generate huge sums of money through taxation. While levies will not initially apply to land-based gambling, it will demand a fixed share from all online sports bets and casino winnings, with the rate and the reach of tax likely to increase over time.
How the Swiss Can Benefit Through this Measure
With online gambling now officially legal in Switzerland, the government will be able to tap into a growth market that has engulfed the rest of Europe. So while the ambiguous nature of historical laws made created indecision and enabled overseas operators to profit in the country’s boundaries, local operators will now be able to claim their own market share and divert money back into the national economy.
This is definitely the aim of the new bill, particularly when you consider that the legislation also directs Internet service providers in Switzerland to ban players from accessing overseas casino sites. This will instantaneously eliminate international competition, and while some believe that it violates the free movement of service and constrains customer rights, in the short-term it will also boost public spending in Switzerland and drive sustained economic growth.
This is particularly true given the wealthy nature of Swiss citizens, with the average amount of disposable income per household currently estimated at $35,952 per annum. In contrast, the current OCED average is just $29,016, so nationals clearly have money to indulge on the favourite pastimes. There is also a healthy demand for online gambling in Switzerland, so the new bill will certainly prove to be lucrative for a country that is synonymous with money and wealth.
It is good news for the global market too, as it will continue to grow at a rapid and relentless pace.