Loterie Romande Ssportsbook

Loterie Romande covers horse racing only for the French horse racing betting company PMU. A special section is dedicated to this, where you can find races of the day, results, and a guide on how to bet on horse racings.

Loterie Romande bookmaker review: rules, support, sign up, free bets, site

Loterie Romande is founded in 1937 targeting mostly 6 French-speaking Swiss states. Loterie Romande is a well-known Swiss bookmaker. Since 2010, this bookmaker has been offering players its online gaming platform.

To play on Loterie Romande you should be registered in one of the six French-speaking cantons (states) (Fribourg, Geneva, Jura, Neuchâtel, Valais, Vaud).

FDJ Gaming Solutions brings together the technological subsidiaries of the FDJ Group in France and the United Kingdom, and a 37% equity investment in BZP 1 . With the creation of this subsidiary, the technological assets developed for the FDJ Group will be harnessed in order to expand B2B sales of products and services worldwide.

FDJ 2020 business plan: To coincide with the World Lottery Summit 2018, FDJ announces the creation of the subsidiary FDJ Gaming Solutions, which will focus on selling technologies and services to game operators

To coincide with the World Lottery Summit 2018 held in Buenos Aires, FDJ announces the creation of FDJ Gaming Solutions.

FDJ Gaming Solutions brings together the technological subsidiaries of the FDJ Group in France and the United Kingdom, and a 37% equity investment in BZP 1 . With the creation of this subsidiary, the technological assets developed for the FDJ Group will be harnessed in order to expand B2B sales of products and services worldwide.

This new stage in the expansion of FDJ’s expertise on the international stage follows the launch of the FDJ Gaming Solutions brand two years ago. It aligns with the FDJ 2020 strategic plan, which has already achieved a number of results:

• after rolling out a sports betting service in Portugal in late 2015 for the Santa Casa de Misericórdia lottery and surpassing €500 million in player stakes in 2017, in early 2018 FDJ Gaming Solutions delivered a sports betting platform and management service to the Loterie Romande in Switzerland, whose sales have already more than doubled;
• partnering with IDEMIA, FDJ Gaming Solutions has also delivered its software solutions to supply some 25,000 point of sale terminals to Lotto Baden Würtenberg in Germany, Svenska Spel in Sweden, Loterie Romana in Romania, PMU in France, and the Ontario Lottery and Gaming Corporation in Canada;
• The joint-venture “Lotteries Entertainment Innovation Alliance AS” (LEIA), which was created by FDJ with the Danish lottery Danske Lotteri Spil, the Norwegian lottery Norsk Tipping and the Finnish lottery Veikkaus with the aim of innovating in the digital lottery field, will utilise the interactive game distribution platform developed by FDJ Gaming Solutions;
• FDJ Gaming Solutions continues to support BZP in its business development.

Lottery games and sports betting 2 account for 36% of the global gambling market 3 , and in 2017 they generated a gross gaming revenue 4 of €116 billion out of a
worldwide total of €369 billion for gambling 5 . Gambling is on the rise in all the major geographic regions, with projected growth of 16% between 2018 and 2023.

FDJ, the second largest lottery operator in Europe and the fourth largest in the world, with €15.1 billion in player stakes in 2017 6 , occupies a leading position in the
lottery sector. As Vice President of European Lotteries, Stéphane Pallez, Chairwoman and CEO, is a member of the Executive Committee of the World Lottery Association. The World Lottery Association includes 149 national lotteries that operate in 80 countries on every continent.

The creation of FDJ Gaming Solutions aligns with the FDJ 2020 strategic plan. This plan, which has been spearheaded for the past four years by Stéphane Pallez, is endowed with €500 million in investment, including €250 million to transform its technological platform, and it aims to make digital technology and innovation central to the company’s growth in order to respond to customers’ new digital user habits and attract new generations of adults. This plan enables major advances when it comes to products and services that may be shared on the global B2B market.

About FDJ
La Française des Jeux (FDJ) is the world’s fourth largest lottery, with sales of €15.1 billion in 2017. It offers its 26.1 million customers and the general public a fun, responsible and secure range of lottery games and sports betting. The Group, together with its subsidiaries (FDJ Réseau, LVS, etc.) has over 2,180 employees, a network of 30,800 local points of sale and a multimedia channel that attracts 1.8 million customers. In 2017, FDJ redistributed 95% of its player stakes; €10 billion paid to its customers, €3.3 billion to the community (including €230 million to ‘sport for all’), and €755 million to retailers.

1 Chinese joint venture that prints scratch tickets set up with the China Welfare Lottery in the late 1990s.
2 Scope of games operated by FDJ in France
3 Study by H2Gambling Capital
4 GGR = Difference between player stakes and player wins
5 Lottery games, sports betting, horse betting, casinos, video lottery terminals, etc.
6 GGR of €10.2 billion in 2017

Furthermore, these federal laws have been implemented in revised cantonal laws.

Gaming Law 2021 Comparisons

PLANZER LAW AG is a boutique law firm specialising in technology, gaming and entertainment matters. The team further holds strong expertise in general business law and (white-collar) criminal law. PLANZER LAW AG has advised the global industry leaders as well as innovative start-ups, with clients benefiting from highly specialised expertise, a truly international perspective on legal matters and an outstanding global network of practitioners, executives, regulators and scholars. PLANZER LAW AG notably provides strategic, regulatory and legal advice on all EU/EEA, Swiss and global gaming matters to all stakeholders, such as B2Cs, B2Bs, PSPs, affiliates and regulators. The firm further advises companies on their global business development; for instance, by providing risk assessments and assisting with compliance programmes (eg, AML, responsible gaming, data protection). Numerous B2Cs and B2Bs have used the firm’s services in seeking and concluding partnership agreements with operators.

1. Introduction

1.1 Current Outlook

On 1 January 2019, a new Gaming Act and four related ordinances entered into effect:

• the Gaming Ordinance;
• the Casino Ordinance; and
• two anti-money laundering ordinances.

The enforcement measures against unlicensed operators have only been applicable since 1 July 2019.

Under the new act, only domestic casinos and lotteries can legally operate online games of chance. These incumbent operators, however, can co-operate with international B2Bs and B2Cs, provided that certain legal requirements are met.

At the time of writing, 11 casinos had received an extension of their licence to offer online games. There is continued and substantial interest in business co-operation from international B2Bs and B2Cs as well as domestic casinos. This is not surprising given the high value of the Swiss online gaming market and the only recently acquired experience of the domestic casinos in the online sphere. Accordingly, the opportunities in a market with only a few licensed offerings are substantial.

1.2 Recent Changes

The recent legislative change constituted a complete overhaul of the legislative framework, replacing the formerly applicable Casino Act and Lottery Act with the new Gaming Act (Geldspielgesetz). For the first time, legislation was passed that comprehensively addresses both bricks-and-mortar and remote forms of gaming as well as skill gaming. As a consequence, the cantons also had to pass implementing legislation at regional level in the past year.

COVID-19 restrictions have heavily impacted the bricks-and-mortar revenues in the past one and a half years. When federal and cantonal governments lifted restrictions, the land-based casinos have been among the last business sectors to be permitted to reopen. By contrast, those casinos already operating an online platform were able to rely on these revenues. While elsewhere in Europe, regulators abruptly imposed restrictions on advertising, this has not been the case in Switzerland.

In February 2021, a new president of the Federal Gaming Board (casino regulator) took office. In June 2021, the long-time director of the same authority stepped down from his office. The new director is likely to be announced at the end of 2021 or beginning of 2022. The Federal Gaming Board is a two-tier authority with the full-time Secretariat headed by a director and the part-time Commission headed by a president.

2. Jurisdictional Overview

2.1 Online

Large-scale betting services can be offered exclusively by the two public lotteries: Swisslos and Loterie Romande.

Large-scale bingo services can be offered exclusively by the two public lotteries.

Casino services can be offered exclusively by the licensed bricks-and-mortar casinos.

Large-scale lottery services can be offered exclusively by the two public lotteries.

Fantasy Sports

Given the legislative criteria, fantasy sports are likely to qualify as skill games, in which case a skill game operator is required to apply for a licence from the regulator, Gespa.

Social Gaming

Social gaming does not fall within the ambit of the Gaming Act if it does not include the elements of consideration and/or a prize.

Similar to casino games, online poker services can be offered by the licensed bricks-and-mortar casinos, which can partner with other domestic casinos as well as international poker platforms. International shared liquidity is permitted under the applicable gaming laws.

Other Relevant Sectors

With the entry into effect of the Gaming Act, all games of chance and games of skill are, in principle, regulated and can also be offered online, subject to certain conditions and exclusive rights. So-called major (or large-scale) games (Grossspiele) include lotteries, sports betting and games of skill if they are operated online, automatically or inter-regionally (between cantons). With few exceptions, the two public lotteries hold the exclusive right to offer online games in the areas of lotteries and betting. By contrast, any skill gaming operator can apply for a licence, provided that it also seeks establishment in Switzerland. Under strict conditions, media publishers and shops may organise lotteries and games of skill without a licence or authorisation.

2.2 Land-Based

Overall and with few exceptions, similar exclusive rights and conditions apply in the land-based sector as in the online sector (see 2.1 Online).

Large-scale betting services can be offered exclusively by the two public lotteries: Swisslos and Loterie Romande.

Large-scale bingo services can be offered exclusively by the two public lotteries.

Casino services can be offered exclusively by the licensed bricks-and-mortar casinos. Currently, there are 21 licensed casinos in Switzerland.

With few exceptions, large-scale lottery services can be offered exclusively by the two public lotteries.

Fantasy Sports

Given the legislative criteria, fantasy sports are likely to qualify as skill games. If they are operated online, automatically or inter-regionally (between cantons), a licence from Gespa is required.

Social Gaming

Social gaming does not fall within the ambit of the Gaming Act if it does not include the elements of consideration and/or a prize.

Similar to casino games, the licensed bricks-and-mortar casinos can offer land-based poker services, but no longer have the exclusive right to do so. The large majority of cantons have passed legislation that permits so-called small poker tournaments and they grant authorisations to poker operators that wish to organise such tournaments.

Other Relevant Sectors

3. Legislative Framework

3.1 Key Legislation

In September 2017, the Swiss parliament passed a fully revised Gaming Act. A referendum was organised against the Act, but the voters adopted the Act. On 1 January 2019, it entered into effect along with four related ordinances:

• the Gaming Ordinance;
• the Casino Ordinance; and
• two anti-money laundering ordinances.

The Gaming Act serves as the legal framework for all games that involve consideration and prizes. It brought significant changes as it regulates online games and replaces all formerly applicable federal gaming laws (mainly the Lottery Act and the Casino Act).

Primary Law

• The Gaming Act (Geldspielgesetz, Loi fédérale sur les jeux d’argent, Legge federale sui giochi in denaro) was passed by the federal parliament on 29 September 2017 and entered into force on 1 January 2019.

Secondary Law

• The Gaming Ordinance (Geldspielverordnung, Ordonnance sur les jeux d’argent, Ordinanza sui giochi in denaro) was passed by the federal government on 7 November 2018 and entered into force on 1 January 2019.
• The Casino Ordinance (Spielbankenverordnung – EJPD, Ordonnance du DFJP sur les maisons de jeu, Ordinanza del DFGP sulle case da gioco) was passed by the Federal Department of Justice and Police (EJPD) on 7 November 2018 and entered into force on 1 January 2019.
• The Money Laundering Ordinance (Geldwäschereiverordnung – EJPD, Ordonnance du DFJP sur le blanchiment d’argent, Ordinanza del DFGP sul riciclaggio di denaro) was passed by the EJPD on 7 November 2018 and entered into force on 1 January 2019.
• The Money Laundering Ordinance (Geldwäschereiverordnung – ESBK, Ordonnance du CFMJ sur le blanchiment d’argent, Ordinanza del CFCG sul riciclaggio di denaro) was passed by the Federal Gaming Board (ESBK) on 12 November 2018 and entered into force on 1 January 2019.

Furthermore, these federal laws have been implemented in revised cantonal laws.

3.2 Definition of Gambling

While the Gaming Act does not define “gambling” as such, it addresses “money games” in Article 3(a), which are defined as games in which a prize or something of monetary value can be expected in exchange for a stake (money or money’s worth) or by the conclusion of a legal act or transaction (German version: Spiele, bei denen gegen Leistung eines geldwerten Einsatzes oder bei Abschluss eines Rechtsgeschäfts ein Geldgewinn oder ein anderer geldwerter Vorteil in Aussicht steht; French version: les jeux qui, moyennant une mise d’argent ou la conclusion d’un acte juridique, laissent espérer un gain pécuniaire ou un autre avantage appréciable en argent; Italian version: i giochi che, fatta una posta pecuniaria o concluso un negozio giuridico, prospettano la possibilità di una vincita in denaro o di un altro vantaggio pecuniario).

3.3 Definition of Land-Based Gambling

There is no specific definition of land-based gambling. Please see 3.2 Definition of Gambling.

3.4 Definition of Online Gambling

There is no specific definition of online gambling. Please see 3.2 Definition of Gambling.

3.5 Key Offences

The key offences that can be committed are as follows:

• operating, organising or providing casino games or large-scale games without the necessary licences or authorisations (Article 130(1)(a), Gaming Act);
• providing the technical means for the organisation of casino games or large-scale games, being aware of the intended use, to persons who do not hold the required licences or authorisations (Article 130(1)(b), Gaming Act); and
• obtaining a licence or authorisation by way of providing false information or in similar deceptive ways (Article 130(3), Gaming Act).

3.6 Penalties for Unlawful Gambling

According to Article 130(1) of the Gaming Act, a person who intentionally commits the criminal offence of organising casino or large-scale games, or of providing the technical means for such operations, shall be punished with a custodial sentence of up to three years or a fine. According to Article 130(2) of the Gaming Act, the penalty shall be imprisonment for up to five years or a fine of not less than 180 daily rates if the offence is committed with a commercial interest or as an organised form of crime.

Finally, Article 130(3) of the Gaming Act states that a fine of up to 180 daily rates shall be imposed on anyone who deliberately obtains a licence or authorisation by way of false information. Other criminal offences such as advertising only qualify as misdemeanours and are subject to a maximum fine of CHF500,000.

3.7 Pending Legislation

The gaming laws have been passed at federal level and most cantons have passed related cantonal laws within the two-year time limit set forth by the Gaming Act. The federal parliament also passed a new data protection act (Federal Law on Data Protection), which is expected to enter into effect in 2022.

4. Licensing and Regulatory Framework

4.1 Regulatory Authority

The ESBK has regulatory oversight over the casino sector. The Swiss Gambling Supervisory Authority, Gespa (formerly Comlot), is an inter-cantonal authority that has regulatory oversight over the lottery and betting market on behalf of the cantons. The EJPD and the cantonal supervisory authorities also hold certain regulatory powers.

4.2 Regulatory Approach

Switzerland has largely adopted a protectionist approach in the area of games of chance, with the incumbent domestic B2Cs enjoying exclusive operating rights. By contrast, this is not the case in the field of games of skill. Overall, the Gaming Act installed a regulatory regime in which licensed land-based games of chance operators can also offer their games online.

As was already the case under the old law, the market is split into three sectors: lottery and betting; casino; and skill. The two public lotteries – Swisslos and Loterie Romande – continue to enjoy far-reaching exclusive rights in the lottery and betting sector. Similarly, only land-based casinos can legally operate casino games. The exclusive rights of the lotteries and casinos apply in relation to both land-based and online games, with few exceptions, such as for land-based small poker tournaments. Furthermore, the cantons continue to hold the powers to regulate skill games in more detail.

4.3 Types of Licences

Following the completion of a vetting procedure undertaken by the Federal Gaming Board, the federal government grants licences to successful casino applicants. Since these licences represent so-called concessions, applicants have no enforceable right to be granted a land-based licence.

In the lottery and sports betting sectors, the cantons have granted Swisslos and Loterie Romande the exclusive right to offer these games. The cantons are the owners of these two entities.

In relation to online games of chance, the Gaming Act provides for the possibility for international B2Cs and B2Bs to co-operate as business partners with the casinos and lotteries. In the skill gaming sector, independent authorisations are available to B2Cs and a liberal licensing regime applies, whereby online and/or land-based applicants are granted a licence when they meet the legislative requirements.

4.4 Availability of Licences

According to Article 9 of the Gaming Act, the federal government shall extend the casino bricks-and-mortar licence to include the right to conduct casino games online if the applicant fulfils the conditions set out in Article 8(1)(a)(1) to (4) and (b) to (d) with regard to the online offering. International business partners of domestic casinos and lotteries cannot be granted a licence, and do not need one. The licence application and/or extension is carried out through the domestic operator.

In the skill gaming sector, by contrast, international operators do not need to co-operate with incumbent domestic entities and can apply independently for a skill gaming licence.

4.5 Duration of Licences

According to Article 12 of the Gaming Act, the licence for casino operations is valid for 20 years. In special circumstances, the federal government may provide a licence for a shorter or longer period. The licence may be extended or renewed. With regard to large-scale games, the operator’s licence and game authorisations (Veranstalter- und Spielbewilligung) may be limited in time and renewed; the same is true for small-scale games (Kleinspiele).

4.6 Application Requirements

According to Article 8 of the Gaming Act, a licence for casino operations may be granted if:

• the applicant:
  1. is a public limited company under Swiss law and its share capital is divided into registered shares;
  2. presents a security concept and social concept;
  3. submits economic viability calculations that credibly show that the casino is economically viable;
  4. sets out the measures to be taken to create the conditions for the proper assessment of the casino duties; and
  5. presents the economic benefits of the casino for the region in a report;
• the applicant and its main business partners, as well as their beneficial owners and the holders of shares and their beneficial owners, have a good reputation and provide a guarantee of proper business conduct and independent management;
• the applicant, the holders of shares, the beneficial owners of the shares and, at the request of the ESBK, the most important business partners have sufficient funds of their own and can prove the lawful origin of the available funds;
• the by-laws, the organisational structure and the contractual obligations guarantee the proper and independent conduct of the casino business; and
• the canton and municipality in which the location is located support the operation of a casino.

Large-scale games such as lotteries, sports betting and skill gaming require inter-cantonal authorisation and are subject to supervision by the inter-cantonal authority Gespa. Small-scale games only require cantonal approval. While the Gaming Act further outlines the conditions under which operations of (large-scale) lotteries and betting can be authorised, the cantons have de facto monopolised this sector, and Gespa cannot grant further licences to other applicants. The conditions outlined under Article 22 of the Gaming Act are therefore of interest primarily to skill game operators. Such authorisation can be granted if the operator:

• is a legal entity under Swiss law;
• enjoys a good reputation;
• outlines its economic situation;
• discloses any financial or other form of participation in other companies;
• proves the lawful origin of the available funds;
• guarantees impeccable management and its independence vis-à-vis third parties;
• has sufficient funds and guarantees that the winnings are paid out to the players; and
• has a security concept and a social concept.

Key Differences between Application Requirements for Land-Based and Online Operators

According to Article 9 of the Gaming Act, the federal government may extend the land-based casino licence to include the right to conduct casino games online if the applicant fulfils the conditions set out in Article 8(1)(a)(1) to (4) and (b) to (d) with regard to the online offer. Such application may also be submitted during the ongoing licence term. Various technical requirements must be met in order to be allowed to offer online casino games. According to the Gaming Ordinance, the EJPD can issue technical requirements, notably in relation to games, jackpots, online gaming platforms, jackpot systems, the electronic accounting and control system (EAKS) and the data recording system (DZS).

It is noteworthy that the international business partners of land-based casinos and lotteries do not need to seek establishment in Switzerland, but online skill gaming operators must do so in order to qualify for a licence.

Key Application Requirements for Directors, Owners or Senior Management

The main business partners of casinos must, inter alia, fulfil the following criteria.

• Good reputation – the main business partners must, in principle, fulfil the “good reputation” criterion. Beyond a mere fit and proper test, former market activities in Switzerland are considered to be relevant by law. The regulator has interpreted this criterion strictly in relation to casino partnerships and for the duration of a five-year cool-down period.
• Sound business conduct and independent management – the law demands that the main business partners must guarantee sound business conduct and independent management.
• No outsourcing of important tasks – the law obliges casinos to fulfil the central activities of all the important tasks by themselves. These important tasks, defined by law, cannot be outsourced to international business partners. White-label solutions, in particular, are not permissible under Swiss law.
• No revenue share based on gross gaming revenue (GGR) or turnover – the law prohibits the compensation of business partners based on GGR or turnover. Game providers only are exempted from this rule, and their remuneration must be appropriate/reasonable according to the law.

Key Application Requirements for Shareholders, including Disclosure Thresholds

Shareholders and their beneficial owners need to have a good reputation and provide a guarantee for proper business conduct and independent management. Moreover, shareholders and the beneficial owners of the shares need to have sufficient funds of their own and be able to prove the lawful origin of the available funds.

According to Article 13 (b) and (c) of the Gaming Act, the casino licensee reports to the Federal Gaming Board the name or company name and address of shareholders holding more than 5% of the share in relation to capital or votes, and any amendments to the share in relation to capital or voting rights as well as the identity details referred to above.

4.7 Application Timing

There are no specific application windows for online licences in Switzerland. By contrast, land-based casino licences run for a duration of 20 years, in principle, after which existing and new applicants can apply for a licence. By the end of 2024, all thus far granted casino licences will run out. Incumbent and new applicants for casino licences should expect the federal government to take decisions regarding the number and kinds of licences in spring 2022. It is further expected that the federal government will grant the actual licences in autumn 2023.

4.8 Application Fees

There are no fixed licensing costs defined by law for any game categories. The Federal Gaming Board must assess whether the application meets the legal criteria. According to Article 102 of the Gaming Ordinance, the costs ultimately depend on the time and effort spent by the regulator to assess the application, and vary between CHF100 and CHF350 per hour.

4.9 Ongoing Annual Fees

According to Article 106 of the Gaming Ordinance, the supervisory costs consist of the costs of the Federal Gaming Board and of the services of other offices that it uses. The Gaming Ordinance outlines the details of the calculation, and the amount is defined on an annual basis by the EJPD.

The 2020 All Switzerland Gaming Convention is an inter-cantonal agreement of all cantons in which they further regulate the Swiss lottery and betting market, notably the regulatory authority Gespa and their administrative fees. The inter-cantonal convention entered into effect on 1 January 2021. Gespa can raise fees according to its fee regulations. The latter needs to be approved by the united finance ministers of the cantons. The present Fee Regulations were adopted on 21 January 2021.

5. Land-Based Gambling

5.1 Premises Licensing

According to Article 7 of the Gaming Act, the casinos are geographically distributed as evenly as possible among the interested regions within Switzerland. The law further requires that the respective canton and the municipality in which the casino premises are to be located politically support the operation of a casino. Moreover, the licence can only be granted if the applicant clearly outlines the economic benefits of the casino for the region at hand.

5.2 Recent or Forthcoming Changes

While the Gaming Act did not alter the essence of the regulatory regime applicable to land-based casinos, it did bring a certain regulatory easement; for instance, in relation to casinos in the mountain areas that only need to staff table games during part of the year.

In relation to the public lotteries, their portfolio has been substantially widened and they are at least legally permitted to offer a more attractive sportsbook than before the legislative overhaul. Finally, online skill gaming operators are able to apply for an inter-cantonal authorisation from Gespa.

Depending on the applicable cantonal laws, automated games of skill may or may not be permissible in gaming halls or amusement arcades.

In review: licensing and taxation of gambling activities in Switzerland

The federal Gaming Act was adopted by the Swiss parliament in September 2017 and subsequently a referendum organised by an alliance of youth parties. The Gaming Act was adopted by the voters in June 2018 and entered into effect on 1 January 2019. Apart from a few exceptions defined in the law, the act serves as the legislative framework for all games involving consideration and prize.

The Gaming Act is complemented by federal secondary law, cantonal law and inter-cantonal law:

1. the Federal Government’s Gaming Ordinance;
2. two ordinances by the Federal Department of Justice and Police: Casino Ordinance and Money Laundering Ordinance;
3. the ESBK’s Money Laundering Ordinance;
4. 26 cantonal laws implementing the federal gaming laws; and
5. inter-cantonal agreements through which the cantons regulate shared issues such as licensing.

The ESBK is the regulator for casino games, while Gespa is the inter-cantonal regulator for lottery, sports betting and skill games. Furthermore, the Federal Department of Justice and Police exercises overall supervision regarding money games and enjoys certain powers, too.

iii Remote and land-based gambling

Although the law distinguishes between remote (online) and bricks-and-mortar (offline) gambling, there are no separate, independent online licences available in the area of lottery, sportsbook and casino games. Separate online licences can only be applied for in the field of skill games. Casinos and public lotteries can, upon approval by the respective regulator, offer their games online, too.

iv Land-based gamblingCasinos

There are currently 21 casinos in Switzerland. Casino games, games of chance on gaming machines as well as large poker tournaments can only be offered by and within the licensed bricks-and-mortar casinos. The federal government (the Federal Council) determines the number of licences (i.e., ‘concessions’) (Article 5(3) Gaming Act).

While there are no bookies in Switzerland, the two public lotteries can sell their lottery and sports-betting products in their respective geographical territories, Swisslos in Italian- and German-speaking Switzerland, Loterie Romande in French-speaking Switzerland, notably through a wide network of kiosks.

Depending on the applicable cantonal laws, automated games of skill may or may not be permissible in gaming halls or amusement arcades.

Cantonal laws may permit small poker tournaments on their territory, which most cantons allow for in their implementing laws. In comparison to large poker tournaments in casinos, these tournaments are subject to various regulatory limitations.

v Remote gambling

Prior to the adoption of the Gaming Act, Switzerland was one of many unregulated online gaming markets for international operators. Domestic lotteries offered a limited range of products also online without an express legal basis. By contrast, domestic casinos had no legal possibility to offer games of chance online.

The situation significantly changed with the Gaming Act. Public lotteries can offer a wide range of lottery and sports-betting products online. Similarly, casinos can offer a full range of casino games as well as poker online. Persons with residence or habitual stay in Switzerland can sign up to these licensed offers and play remotely.

Casinos and public lotteries can seek business partnerships or collaborations with international B2Cs and B2Bs, provided that certain legal requirements are met, such as the good reputation criterion (B2Cs) or a fit and proper test (B2Bs and poker collaborations). The good reputation criterion also refers to former commercial activities on the Swiss market. However, the 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.

vi Ancillary matters

While game operators (lotteries, casinos, skill game operators, poker tournament organisers and minor games organisers) need some form of licence or authorisation, platform or game providers do not need to, and nor are they able to, apply for licences. The regulator considers the domestic operator as the licensee. However, if the domestic casino wishes to see a partnership with an international B2C or B2B approved, it will have to make sure that the international partner meets various regulatory requirements.

While there is no personal licensing for key individuals in land-based casinos, they nevertheless need to be approved by the regulator as the law requires them, for instance, to enjoy a good reputation. The latter criterion also applies to international B2Cs and B2Bs when they are considered as main business partners.

There are also various technical requirements, such as that casinos may only purchase online games from suppliers that use an IT security management certified in accordance with the ISO/IEC 27001 standard or ensure comparable security by other means.

vii Financial payment mechanisms

Generally speaking, Swiss gaming law itself does not per se exclude certain payment mechanisms such as e-wallets or cryptocurrencies. Naturally, any payment mechanism must be compliant with anti-money-laundering requirements. Furthermore, the Gaming Ordinance requires that winnings and balances in a player account can only be transferred to a ‘payment account’ that is held in the name of the holder of the player account. The initial practice of the ESBK of limiting ‘payment accounts’ to Swiss bank accounts was criticised in the casino sector and scholarly literature. 3 The ESBK has subsequently broadened the range of accepted payment accounts.

Taxation

i Lottery and sports betting

All net proceeds from the two public lotteries should in principle be allocated to good causes, notably sports and culture. However, cantonal practices in allocating the proceeds may vary significantly and there is little oversight with regard to the use of the net proceeds. Costs stemming from B2Bs that provide services to lotteries are in principle deductible.

A progressive gaming tax applies in the area of casino games, with a higher tax applying to land-based operations than to online operations. The tax rate for land-based casino operations is between 40 and 80 per cent of the gross gaming revenues (GGR). The base rate of 40 per cent applies to GGR up to 10 million Swiss francs. For every additional 1 million Swiss francs, the marginal tax rate increases by 0.5 per cent (Article 114 Gaming Ordinance). The tax rate for online casino operations is between 20 and 80 per cent of the GGR. The rate can be reduced to half the amount in the first four years of operation. The base rate of 20 per cent applies to GGR up to 3 million Swiss francs. After that threshold, the marginal tax rate increases in a series of varying rates.

There is no federal gaming tax in regard to skill gaming operations. The normal tax competition between cantons and municipalities applies in this field. Accordingly, the usual local corporate tax rates apply to these operations, which can be higly attractive in comparison to other European jurisdictions.

In most constellations, players do not pay taxes when playing with licensed domestic operators. The exception to this general rule is winnings exceeding 1 million Swiss francs from game activities of domestic lotteries and online operations of domestic casinos. Where players gamble with unlicensed foreign operators, their winnings are subject to income tax.