Established in 2006, the Eidgenössische Spielbankenkommission (ESBK) based in Berne, Switzerland is tasked with combating illicit gambling activities, licensing and supervising gambling operators. Many highly-acclaimed casino sites are licensed by the ESBK.
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The Eidgenössische Spielbankenkommission (ESBK) has been around since 2006. The Swiss Gambling Supervisory Authority is the government-appointed gambling supervisory and licensing authority. Today, Switzerland is a home to legal online and land-based gambling market and it offers quite attractive business opportunities to licensed gambling operators. Online gambling has been legal in the country since 2019 following the introduction of the Federal Act on Money Games.
The ESBK has been tasked with regulating and monitoring all the different online gambling activities on the territory of Switzerland, including:
The Eidgenössische Spielbankenkommission (ESBK) officially started operating on the 1st of July, 2006. It replaced another government-appointed agency that regulated lotteries and other gambling venues. The Supervisory Board of the ESBK has five main members. All of the Supervisory Board members are appointed by the Swiss cantonal executives.
The responsibility of the ESBK is to make sure that large-scale gambling operators are aware of the hazards related to gambling, such as illicit gambling activities, including money laundering and other types of fraud. The prevention of excessive gambling and the safety of children are given special attention. The ESBK also evaluates the risk potentials of the game to be licensed using tried-and-true methodologies before granting a remote or any other kind of gambling license.
According to the latest research done on the gambling market, the ESBK also has the power to take appropriate measures against operators which violate any of the rules and regulations enforced by the main gambling legislation. With this being said, the Switzerland Regulatory Body conducts regular checks into all licensed operators’ practices and activities. The ESBK is also involved in fighting illicit gambling activities.
The regulating agency collaborates with various Internet service providers and the Swiss Federal Gaming Board to detect and bring legal action against gambling companies that have been found to have violated local gambling laws. In other words, the Ordinance, the Gambling Concordat, and the Federal Act on Gambling are all enforced under the supervision of the ESBK. One of the main goals of the Switzerland Regulatory Body is to ensure that Swiss citizens can partake in lotteries, sports betting, and skill-based activities in a responsible and safe manner.
This leads us to tax rates imposed on gambling operators in Switzerland. For gross gaming revenue generated by brick-and-mortar casinos, the standard tax rate is 40%. On gross gaming income up to CHF 10 million, it is levied. The marginal tax rate rises by 0.5% for every extra million collected in gross gaming revenues by land-based casinos.
For gross gambling revenue generated by licensed online gambling operators, the standard tax rate is 20%. On gross gaming income up to CHF 3 million, it is levied. The marginal tax rate will then rise in five installments. As of today, twenty-one casinos can legally offer their gambling services and products online to Swiss residents.
The ESBK alongside the Federal Gaming Board issues both A and B licenses. As of today, ten gambling operators are issued A licenses, and thirteen operators received B gambling licenses. The licensing process is usual. Operators need to submit all the required documentation, submit their business plan, and provide information on projected profits and losses.
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Land-based and online gambling operators with licenses issued by the Eidgenössische Spielbankenkommission (ESBK) are legally allowed to offer their gambling services and products in Switzerland.
Yes, the Eidgenössische Spielbankenkommission (ESBK) is the main gambling regulatory and licensing body in Switzerland. However, it cooperates with several other governmental agencies, including the Swiss Federal Gaming Board.
Yes, all gambling operators licensed by the Eidgenössische Spielbankenkommission (ESBK) pay taxes on their gross gaming revenues collected in a year. More specifically, online gambling operators invest 20& of their gross gaming revenues in taxes while land-based gambling operators invest 40% in standard taxes.
On the Eidgenössische Spielbankenkommission (ESBK) official website, you will find a list of all gambling operators which are licensed to offer their gambling services and products in Switzerland.
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