SWITZERLAND Law and Practice Contributed by: Simon Planzer and Florian Furger, PLANZER LAW
Skill Gaming The broad definition of skill gaming in Article 3 (d) of the Gaming Act is further detailed in Article 2 of the Gaming Ordinance. A skill game should meet the fol- lowing conditions: • skilful players can win more than other players over a larger number of game units; • in blind play mode, the probability of winning is low; • players have several options for influencing the course of the game; and • playing successfully requires skills of a certain complexity. It can be expected that skill gaming, certainly online, will continue its success. It can easily be observed that millennials do not crave pure games of chance but are looking for games of skill or games of a hybrid nature. The skill gaming sector is a highly attractive one in Switzerland since online and land-based authorisa- tions are available by way of a liberal licensing regime and no gaming tax applies in this sector. Blockchain and Cryptocurrency It is often argued that blockchain can revolutionise the gaming and gambling sector. Indeed, if properly applied, there is the potential for transparency and efficiency. Since transaction data is immutable, there is more reliability and transparency, and with faster and cheaper financial movements, the player experi- ence can become smoother and gaming operations more efficient. Along with some other nations, Swit- zerland was quickly identified as a “crypto nation” and has been at the forefront of hosting blockchain and cryptocurrency initiatives. This also has to do with a crypto-friendly regulatory environment. Consequently, the regulatory authority ESBK had received enquiries from casinos regarding the use of cryptocurrencies as a means of payment. As a mat- ter of fact, the Gaming Act and its ordinances do not exclude the use of blockchain technology or cryp- tocurrencies. However, pursuant to Article 80 (2) of the Gaming Ordinance, the ESBK may prohibit certain means of payment if their use is incompatible with the objectives of the Gaming Ordinance. As such, licensed operators interested in using blockchain and
cryptocurrencies would have to convince the regula- tor that the strict legal requirements can be met with these means. In September 2023, however, ESBK issued a state- ment on the use of crypto currency as a means of payment in casinos. ESBK took the stance that crypto currencies imposed a risk in terms of combating mon- ey laundering and terrorist financing due to its inher- ent anonymity and difficulties in identifying beneficial owners. Upon assessment of the legal framework in Switzerland, the ESBK concluded that the current law does not offer sufficient guarantees to mitigate these risks and as such the risk would be too great to allow cryptocurrencies to be used as a means of payment in Swiss casinos. Nevertheless, the possibility of using crypto currencies in Swiss casinos in the future is not ruled out irrevo- cably by this statement if ESBK came to conclude in the future that the legal framework was adapted to mitigate the risks that they had identified. Large-scale betting services can be offered exclusive- ly by the two public lotteries ‒ Swisslos and Loterie Romande. Bingo Large-scale bingo services can be offered exclusively by the two public lotteries. Casino Casino services can be offered exclusively by the licensed bricks-and-mortar casinos. Lotteries 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 2. Jurisdictional Overview 2.1 Online Gambling Betting
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