Switzerland: Sports Betting Regulation
Sports betting is popular and big business around the world and worth some US$45 billion. This trend is likely to continue, and the value of sports betting is expected to increase by over 7% in the next five years!
In Switzerland, sports betting is licensed and overseen by the Swiss Gambling Supervisory Authority, whose main purpose is to ensure that all forms of permitted gambling are safe for all punters.
In 2018, the Swiss Gambling Law was revamped and only ‘Swisslos’ in the German-speaking and Italian-speaking parts and ‘Loterie Romande’ in the French-speaking parts of Switzerland are allowed to offer lotteries and sports betting.
Until recently, horse racing betting was only permitted in the French-speaking parts of Switzerland, but now it has also been permitted in the German-speaking parts of the country.
Punters must be 18 years old and may bet through the ‘Sportip’ (‘Swisslos’) or ‘Jouez Sport’ (‘Loterie Romande’) websites and their apps, as well as at thousands of points of sale, such as newsagents, throughout the country. High street bookmakers do not exist in Switzerland.
Since the revamped Swiss Gambling Law came into effect on 1 January 2019, most foreign betting providers have left the Swiss market, and foreign websites have been blocked.
Sports betting winnings are now only subject to income tax above Sw.Frs.1 million (€1,065, 491). It may be added, however, that winnings from overseas betting, made by individuals domiciled in Switzerland, do not benefit from this exemption.
According to Article 106 (6) of the Swiss Federal Constitution:
“Net revenues from sports betting must be used in their entirety for public benefit purposes.”
For example, last year, Sw.Frs. 56 million (€59,653,807 ) from lotteries and sports betting was paid by ‘Swisslos’ to the Swiss Sports Promotion Foundation and ‘Swisslos’ stated that it supports 21,000 projects a year relating to sports, culture, social affairs and the environment.
The Swiss Gambling Supervisory Authority points out that betting on sports events that involve a “heightened risk of competition manipulation” is prohibited.
As regards gambling addiction in Switzerland, the 26 Cantons are required to take preventative measures and to offer counselling and treatment services to people with gambling addictions.
According to a Survey last year, so-called on-line “problematic gamblers” have more than doubled from 2.3% to 5.2%, with punters aged between 18 and 29 being the most affected.
The Author may be contacted by e-mail at ‘valloni@valloni.ch’