Switzerland’s Casinos Guaranteed Licenses for 20 More Years

Article by : Erik Gibbs May 28, 2024

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The Swiss Federal Council has announced the issuance of new casino licenses starting in 2025. This decision was formalized during a meeting of the Switzerland casino industry’s delegates on May 22. The current casino licenses, expiring at the end of 2024, will be replaced by new agreements lasting 20 years, initiating a new era for Swiss casinos.

The new licensing framework will see the addition of casinos in Prilly and Winterthur, broadening the industry’s geographic reach.

Notably, the Winterthur casino will replace the existing venue in Schaffhausen, as the latter did not apply for a new license, resulting in its closure.

Gerhard Pfister, president of the Swiss Casino Association, hailed the new licenses as a landmark moment for Switzerland’s gambling sector.

Pfister emphasized that the federal government’s decision highlights the recognition of the current casinos’ ability to ensure safe and responsible gaming operations and their significant economic contributions.

In a move towards greater consolidation, the Swiss Casino Group’s venues in Zurich, Schaffhausen, St Gallen, and Pfäffikon have joined the Swiss Casino Association following a unanimous agreement.

This consolidation marks a significant step in unifying the industry under a single representative body. The new Winterthur casino is also expected to join the association once it begins operations.

As a result, all 21 land-based casinos and 10 online casinos in Switzerland are now members of the Swiss Casino Association, forming a comprehensive and cohesive industry body.

Gerhard Pfister expressed his satisfaction with Swiss Casinos’ full integration into the association, noting that a unified voice will enhance the industry’s ability to tackle common challenges and seize opportunities.

Revenue from Switzerland’s land-based casino venues decreased slightly in 2023, reflecting changing consumer behavior and market dynamics.

The total gross gaming revenue (GGR) from land-based venues amounted to CHF623 million ($681.2 million), representing a 1.1% decline from the previous year.

In contrast, the online casino segment demonstrated robust growth, with the 10 online casinos collectively generating CHF286 million ($313 million) in GGR, a notable 14.3% year-on-year increase.

Swiss casinos significantly contributed to state finances, paying 3% more in taxes year-on-year, with total tax contributions amounting to CHF409.3 million ($448 million) in 2023.

Over the past two decades, Swiss casinos have paid over CHF8 billion ($8.76 billion) in taxes, with a substantial portion directed towards funding the country’s AHV pension system, underscoring the industry’s fiscal importance.

Earlier in the week, the Loterie Romande public lottery in Switzerland reported a net profit increase of CHF5.1 million ($5.58 million) for 2023, showcasing strong financial performance despite challenges.

The Loterie Romande also announced a record payout of CHF243.7 million ($266.7 million) to various good causes, reinforcing its commitment to social responsibility and community support. This impressive financial result was achieved despite a 3.4% drop in gross gaming revenue (GGR), which fell to CHF420.7 million ($460.4 million) in 2023, down from CHF435.5 million ($476.6 million) in 2022.

Jean-René Fournier, chairman of Loterie Romande, attributed the net profit increase to stringent operating cost management, including reductions in marketing and administrative expenses.

He also highlighted the strengthening of the lottery’s digital offerings and the introduction of the European draw game EuroDreams in October 2023, which diversified the product range and contributed to overall financial success.