A research group dedicated to economic and social matters in Switzerland is advocating for a restructuring of the nation’s gaming sector. This includes the issuance of exclusive online permits.
The research group contends that the country’s gambling industry is frequently influenced by political considerations and is inefficient.
The group highlights that politicians determine how gambling revenue is distributed and that a “genuine cash distribution enterprise” has emerged around the country’s two lottery organizations – Swisslos and Romandie Lottery – which collectively oversee approximately 80 distinct lottery funds.
The research group asserts that the method of fund allocation also leads to inefficiencies and that, “contrary to popular belief,” some casino tax revenue flows to jurisdictions different from those where the casinos are situated.
The group adds that another issue stems from the fact that numerous states concurrently act as both operators and regulators by holding stakes in casinos.
The report’s authors state, “The distribution of gambling funds is not ideal.” “State-level lottery funds often provide funding for projects that take a very broad interpretation of the concept of public interest as defined in the constitution.”
The research group calls for a series of reforms to the nation’s gambling industry, including the introduction of exclusive online licenses.
It is asserted that the expense of overseeing lottery funds fluctuates between sixteen and twenty-two million Swiss francs per year, while “the yearly frictional costs of the current system are anticipated to reach tens of millions of Swiss francs.”
The research also emphasizes that the obstacles confronting Switzerland’s regulatory framework are intensified by the surge of online wagering. Numerous regulatory duties are shared between national and state-level organizations, which the study contends “renders the two artificially separated gaming domains increasingly difficult to differentiate.”
Consequently, it recommends changes in three domains. Initially, it asserts that the government should not function as a gambling operator but should concentrate on regulation. As part of this, it argues that the government should also concentrate on “direct reallocation” of gambling income.
Secondly, the nation’s two regulatory bodies – the Swiss Federal Gambling Commission (ESBK) and Gespa – should be consolidated into a solitary unified regulator.
Thirdly, it states that “a modular regulatory strategy is required,” replacing what it refers to as the “analogue-first model,” in which online gambling is perceived as an extension of land-based permits. Under the system proposed by the think tank, operators could apply for online-only licenses.
“Unlike the present system, where digital games are the exception, the future is expected to be the opposite,” it states. “Analogue games will be considered the exception, which will overturn the entire system.”
The Swiss authorities have recently granted approval for two additional gambling permits, increasing the total number to 23. This development allows more businesses to participate in Switzerland’s gambling industry.