In review: licensing and taxation of gambling activities in Switzerland
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The Gaming Act was adopted by the Swiss parliament in September 2017 and entered into effect on 1 January 2019. It serves as the legislative framework for all games involving consideration and prize.
Domestic lotteries offered limited products also online without an express legal basis. Domestic casinos had no legal possibility to offer games of chance online. Casinos and public lotters can seek business partnerships with international B2Cs and B 2Bs. International business partners do not need to seek establishment in Switzerland. This requirement only applies to skill gaming operators who can apply for an independent online licence. Financial payment mechanisms must be compliant with anti-money-laundering requirements. Casino suppliers must use IT security management certified in accordance with the ISO/IEC 27001 standard.
In review: licensing and taxation of gambling activities in Switzerland. The Federal Government's Gaming Ordinance, two ordinances by the Federal Department of Justice and Police and ESBK's Money Laundering Ordnance.
There is a progressive gaming tax in the area of casino games. The base rate of 40% applies to GGR up to 10 million Swiss francs. For every additional 1 million franc, the marginal tax rate increases by 0.5%. Online casino operations are taxed between 20% and 80%. There is no federal gaming taxes in regard to skill gaming operations. Players do not pay taxes when playing with licensed domestic operators. Where players gamble with unlicensed foreign operators, their winnings are subject to income tax.
