Switzerland has decided to move away from it stringent regulatory system which has long stifled innovation in the gambling sector and re-introduce laws that are well-adjusted for present day times. The proposed changes will now affect the land-based venues as well as their digital counterparts found online.
Switzerland’s Rigid Past on Gambling
Switzerland has certainly not mucked about insofar as gambling bans go. The country outlawed the activities as early as 1921, but several decades later, in 1993, the government decided that some let-up is due. And so, firms enjoyed some form of licensing in those times of yore. Now, when the market finally broke the mold of the past, both local and foreign operators were put on equal footing, allowing them to vie for a share of the market.
The push for a different gambling market has continued well in 2018. Earlier this year, a referendum was held on how gambling should be handled. Many thought that the industry will come to a long-anticipated end following a popular support to shut the door on gambling once and for all. Something different happened though.
Goodbye My Foreign Friends
Instead of phasing out or discontinuing the industry, Switzerland has decided to endorse it, with one small wrinkle, however. Foreign operators will not be to offer their products in the country, unless they are physically present in the country. This is definitely a spanner in the works for the whole iGaming industry.
However, it makes sense. The only way that Switzerland can have a control over social security checks and other prerequisites of safe gambling is for the country to bind all operators to be present physically on its territory. As the changes in regulation stand, local regulators will have the upper hand, and some divine a plot to monopolize the market.
This is another fair concern, but it’s likely not true. The government cuts deep into the revenue of casinos to make sure that it covers certain budget costs, including the retirement fund. In other words, Switzerland would not want to cut itself out of one of the main places where it gets money to cover social costs.
However, Switzerland is also not willing to allow dodgy operators, albeit this is not the case with the names of 888, for instance, to keep carrying on without contributing or ensuring social checks are in place.
Reforming in the Wrong Direction
In a word, Switzerland has embarked on a reform, but some estimate that it’s going in the completely opposite direction of what has been hoped for. Instead of having a more vibrant and competitive market, the referendum will de facto entrench the few operators at home. Even then, as referendums are increasingly popular decisions, it would be difficult to argue against it.
As the opposition have said, advertising gambling, even if it’s a matter of personal freedoms, is a difficult bargaining chip and a nigh-impossible campaign. It’s understandable why the for campaign managed a rather effortless win with the majority of the vote.
