Switzerland is to lift its internet gaming ban and regulate the activity instead, under plans for a complete overhaul of its gambling laws unveiled by the country’s Federal Council yesterday.
Under a law being drafted by the Federal Department of Justice and Police alongside representatives from the 26 Swiss Cantons or federal states, the gambling industry and gambling addiction experts, the Council said internet gambling would be legalised and subject to the same regulatory conditions as the traditional offer.
“In particular, the requirements of safety, protection of minors and the fight against gambling addiction [will be] identical,” the Confederation said.
Opting for regulation rather than prohibition of online casinos would allow the Swiss state to keep revenues within the country to fund cultural, social and sporting projects, instead of “going into the pockets of foreign operators”, the Federal Council said in its statement.
The Confederation added that it would implement measures which allowed it to “block the emergence of illegal online casinos that do not respect the protective measures against gambling”, hinting at the potential inclusion of ISP or payment blocking provisions in the new law.
As part of the new unified framework aimed at introducing “a coherent and effective policy on gambling”, Switzerland intends to eliminate the currently unequal treatment of gambling winnings. At present , lottery and sports betting winnings are taxable, but earnings from land-based casinos are exempt.
The Federal Council said any tax shortfall for the Confederation and the cantons resulting from this change would be offset by additional revenues that would accrue from gambling becoming more attractive.
At present, all forms of online gambling are prohibited but the current Swiss law does not allow for effective enforcement, meaning many of Europe’s leading operators are currently able to target Swiss customers from their bases in low-tax jurisdictions elsewhere in Europe.
The 7.9 million-population country is not a Member of the EU, so is not bound by the same obligations under European law to open its online gambling market and allow foreign operators to apply for licences.
The new draft law on gambling will be subject to consultation in the second half of 2013.
16/2/2013, 10:06 pm