Switzerland May Block Some Foreign Gambling Websites

Swiss Government Plans to Block Some Foreign Gambling Sites

It is possible that online gambling operators outside of Switzerland may not be able to offer their platforms to Swiss gamers. On March 1, 2017, a vote by the Swiss House of Representatives was in support of a proposed measure whereby internet access to real-money gambling websites that do not hold the proper local license would be blocked. The Senate had previously approved the proposal, but the conversation did not resume until January 2017.

This is an effort that has been in the works for quite some time, as domestic online casinos and other gaming companies have been calling for it. Swiss internet service providers (ISPs) have said that gambling operators in Switzerland would have to pay more because of the costs of an IP blockage. In addition, there would be other online casinos that would benefit greatly from the blockage, justifying even more the increased cost of blocking IP addresses.

At the same time, the ISPs have stated that the measure have not been very effective in some jurisdictions where such blockages already exist. In those cases, players still found ways to access the websites although they were blocked. There has also been opposition among political parties, stating that blocking foreign websites was not something a democratic government should do, although blocking websites is common in communist countries. Despite this argument, it seems the IP blockage will still be put in place.

Local Online Gambling Operators are Happy

This blockage will be highly beneficial for local online gambling operators that have complained for a long time that they have been losing revenue because of international competition that is not properly licensed. However, Swiss lawmakers made it very clear that international gambling websites will not be able to apply for local gaming licenses.

Taxation was also discussed by the legislators, although they failed to reach an agreement on how gambling winnings would be taxed. It is possible that they may not be taxed at all. The Senate proposed that up to $1 million in lottery and sports betting winnings would be untaxed. Anything more than $1 million would be taxed but at a rate that is yet to be determined. The opposition said that all winnings should remain untaxed.

The Senate only has until the middle of March to settle these internet gaming issues and regulations. This means that a conclusion in the matter will be reached very soon, putting some gaming websites on edge while others are cheering on the blockage.