Switzerland voted to block online gambling websites

8 years ago - Published in Finance, Fundamental Analysis

Online gambling sites are no longer welcome in Switzerland after legislators voted to require internet service providers to block the domains of unapproved sites. The Swiss House of Representatives voted on Wednesday in favor of the proposed blockage of Internet access to real-money gambling websites that have not been licensed by local authorities.

The measure had previously been approved by the Senate. Discussions over the proposed block of international operators emerged once again in January. However, the effort, which has long been called for by domestic casino, betting, and lottery companies, lost some momentum after Swiss telecoms voiced certain opposition earlier this year. “Blocking websites works – experience abroad demonstrates that,” said Thierry Burkart from the centre-right Radical Party.

In January, the lower house’s Legal Affairs Committee narrowly voted to expunge the domain-blocking language from the country’s proposed gambling legislation. But the committee’s vote wasn’t binding and the pro-blocking camp eventually got its way when the matter came up for a floor vote.

However, the effort, which has long been called for by domestic casino, betting, and lottery companies, lost some momentum after Swiss telecoms voiced certain opposition earlier this year.

Local Internet service providers argued that Swiss gambling operators would have to pay for the additional costs that would arise from the IP blockage, as their would be the ones to benefit from the implementation of such a blockage. What is more, they commented on the measure as one that has proved to be rather ineffective in other jurisdictions where it has been implemented, as there were numerous ways for players to access websites even though those were blocked.

The measure will benefit local gambling operators that have long been complaining about losing precious revenue to their international rivals. Swiss lawmakers also made it clear on Wednesday that foreign operators will not be able to apply for licenses from local authorities. However, despite reaching a conclusion on the matter of blocking websites, the country remains undecided as to whether it should tax winnings.

The Senate has previously said that it would like all winnings from sports betting and lotteries to remain tax-free up to CHF1 million (€939,400).

The Swiss government has around two weeks to solve the pending issues related to the new iGaming regulations. Gambling-related matters are scheduled to be discussed on March 15. And the government’s spring legislative session is set to run to March 17.