Switzerland
Answer ... According to Article 106 of the Federal Constitution, the competence to legislate on matters of money games (including money gambling as well as lotteries, betting, casino games and skill games) rests with the Confederation. As is usual in Switzerland, enforcement is the responsibility of the 26 cantons, which in turn issue cantonal enforcement ordinances.
Both federal law and cantonal legislative acts must therefore be observed. In addition, there is cooperation between the cantons in some areas based on so-called ‘inter-cantonal concordats’ (see question 2.2)
At the federal level, the Money Gaming Act of 29 September 2017 (SR 935.51), which entered into force on 1 January 2019, serves as a framework law that regulates the admissibility, implementation and use of gaming revenues from bricks-and-mortar money gaming, online money gaming and skill-related money gaming (subject to statutory exceptions such as short-term money games for advertising purposes, money games limited to private circles or financial market-related activities).
The Money Gaming Act is further specified by the Federal Gaming Ordinance (SR 935.511) and the Federal Casino Ordinance (SR 935.511.1), both of 7 November 2018 and in force since 1 January 2019.
In addition, other legislative acts must be observed in the specific case – notably:
- the Federal Anti-Money Laundering Act of 10 October 1997, in force since 1 April 1998 (SR 955.0); and
- the specific Money Laundering Ordinance of 12 November 2018, in force since 1 January 2018, issued by the Federal Gaming Board (SR 955.021).
To standardise cantonal laws and ordinances, the cantons concluded agreements among themselves (‚inter-cantonal concordats’). Three relevant agreements concern gambling:
- All 26 cantons are members of the Cross-Switzerland Money-Gambling Concordat (GSK);
- The German-speaking cantons and the Italian-speaking canton of Ticino have concluded the Inter-cantonal Agreement concerning the Joint Implementation of Money Games 2020; and
- The French-speaking cantons of Western Switzerland have also joined forces in a concordat (Convention romande sur les jeux d’argent).
Switzerland
Answer ... As noted under question 2.1, regulations exist at the federal and cantonal level, which are complemented by inter-cantonal concordats. Accordingly, there are various authorities with regulatory and supervisory functions.
The Federal Gaming Commission (ESBK) is responsible for the supervision and enforcement of the Money Gaming Act regarding casino games. Among other things, it:
- examines licence applications and applications for licence extensions for the online operation of casino games (the granting of a licence ultimately falls under the responsibility of the Federal Council – that is, the Federal Government);
- assesses and collects the casino tax; and
- tackles illegal gambling by establishing barriers to access for illegal online offers and by prosecuting illegal gambling.
The ESBK is an independent body. Administratively, however, it is assigned to the Federal Department of Justice and Police.
The Inter-Cantonal Gaming Supervision (Gespa) is responsible for monitoring and enforcing the Money Gaming Act in the area of large-scale gambling. It is an inter-cantonal institution under public law with its own legal personality. Gespa carries out its supervisory activities independently and autonomously (Article 21 of the GSK). Its tasks include:
- the licensing and supervision of large-scale gaming operators and their large-scale gaming offerings;
- the qualification of these games (in particular, games of skill); and
- the combating of illegal money games.
Gespa also acts as Switzerland’s national platform for combating the manipulation of sports competitions. Finally, Gespa is the competence centre of the cantons for all aspects of money games; it publishes statistics on large and small games and a report on the (charitable) use of the net profits from lotteries and sports betting every year.
The cantons are responsible for the supervision and enforcement of the Money Gaming Act regarding small-scale gaming, including raffles and small poker tournaments hosted outside of casinos.
Switzerland
Answer ... Determining the exact approach across such a wide array of regulators is difficult. However, some common principles follow from the purpose of the Money Gaming Act:
- The population must be adequately protected from the dangers posed by money games;
- Money games must be conducted in a safe and transparent manner;
- The net profits from large-scale games (except for the net profits from games of skill games and the net profits from certain types of small-scale games) must be used in full and in a transparent manner for charitable purposes; and
- A portion of the gross gaming revenues of the casinos must be used for the benefit of old age, survivors’ and disability insurance.