Switzerland’s Federal Council announces new 20-year licenses for all casinos starting in 2025, marking a significant regulatory shift.
In a landmark decision, Switzerland’s Federal Council has decided to renew and issue new 20-year licenses for all existing and some newly approved casinos starting in 2025, heralding a significant development in the Swiss gambling industry.
Regulatory Refresh
On May 22, 2024, the Swiss Federal Council announced its decision to issue fresh licenses to all casinos nationwide, effective from 2025. This move comes as current permits expire at the end of 2024. The new licenses will last 20 years, providing long-term stability for operators. This decision follows comprehensive discussions at the Swiss casino industry delegate meeting.
Expansion and Association
The announcement was also accompanied by the approval of new casinos in Prilly and Winterthur. Winterthur is set to replace the existing facility in Schaffhausen, which did not reapply for its license. Furthermore, all casinos, including the newly licensed ones, are now unified under the Swiss Casino Association, enhancing collaboration and representation of the sector at a national level.
Industry Impact and Growth
Gerhard Pfister, president of the Swiss Casino Association, highlighted the significance of these new licenses, noting that they affirm the government’s confidence in the industry’s ability to operate responsibly and contribute significantly to regional economies. This restructuring comes when the Swiss land-based casino sector has seen a slight decline in revenue. However, online casino platforms reported substantial growth, signaling a shift in player preferences towards digital platforms.
Financial Contributions and Future Projections
Despite the challenges faced by land-based venues, which saw a marginal decline in gross gaming revenue (GGR), online casinos have experienced a robust increase. In 2023, land-based casinos generated CHF 623 million in GGR, a slight decrease from the previous year, while online platforms saw a 14.3% increase, totaling CHF 286 million in GGR. The casinos also contributed more in taxes year-over-year, with CHF 409.3 million going towards public coffers, supporting vital national projects like the AHV pension system.
Broader Implications
The Federal Council’s proactive approach to renewing and extending casino licenses is seen as a strategic move to safeguard and stimulate the gambling sector in Switzerland. This decision is expected to encourage more sustainable and innovative growth within the industry, aligning with broader economic development goals. Additionally, the Loterie Romande, a major public lottery in Switzerland, reported a record net profit, contributing significantly to social causes, further underscoring the gambling sector’s role in national welfare.
This comprehensive overhaul of casino licensing in Switzerland marks a new era for the gambling industry, promising enhanced operational standards and significant economic contributions in the coming decades.