SWITZERLAND Law and Practice Contributed by: Simon Planzer and Florian Furger, PLANZER LAW
criterion. Beyond a mere fit and proper test, former market activities of B2Cs in Switzerland are con- sidered 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 man- agement – 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 impor- tant tasks, defined by law, cannot be outsourced to international business partners. White-label solu- tions, in particular, are not permissible under Swiss law. • No revenue share based on gross gaming revenue (GGR) or turnover – the law prohibits the com- pensation of business partners based on GGR or turnover. Game providers only are exempted from this rule, and their remuneration must be appropri- ate/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 ESBK 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 casi- no 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 casino licences have
run out and the newly granted 22 land-based licences apply as of January 2025. It is noteworthy that there is no fixed licensing window for online licences and that, accordingly, casinos can still apply for an online extension of their licences at any point in time, and also after the re-licensing of the casino landscape. 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 Ordi- nance, 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 its admin- istrative fees. The inter-cantonal agreement 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 11 January 2021. 4.10 Personal Licensing There are no personal licences in Switzerland. How- ever, on substance, similar licensing aspects apply to certain key individuals. Background checks apply to beneficial owners, management and important busi- ness partners of the bricks-and-mortar casinos. The domestic licence holder reports the necessary documents to the regulator in advance and uses spe- cific forms, with different annexes applying to legal entities and natural persons. Required documentation usually ranges from CVs to register extracts, official documents and contracts.
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