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Switzerland’s Casino Industry – New Licenses For Casinos!

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The Swiss casino industry has recently witnessed a significant development with the federal council’s decision to grant new approvals to all operators starting in 2025. This decision comes after a delegate meeting held on May 22, where it was announcedthat current licenses, which are set to expire by the end of 2024, will be replaced with new agreements spanning 20 years.

New Licenses and Casino Expansion

The new casinos have been approved in Prilly and Winterthur. Winterthur’s approval is especially noteworthy as it will replace the existing venue in Schaffhausen due to a lack of license applications for the latter. This move signifies a pivotal moment in Switzerland’s gambling history, as mentioned by Gerhard Pfister, president of the Swiss Casino Association.

“The granting of the new concessions is a milestone,” Pfister said. “The federal government has recognized that today’s casinos ensure safe and responsible operations and generate great economic benefits in their region.”

Moreover, there has been a significant development in the association landscape, with all Swiss Casino Group venues in Zurich, Schaffhausen, St Gallen, and Pfäffikon joining the Swiss Casino Association following a unanimous deal. Winterthur, upon its opening, plans to submit a membership form to the association as well. This will highlight that all 21 land-based and 10 online operators in this country can boast membership in the Swiss Casino Association.

’’New casinos were approved in Prilly and Winterthur, with the latter replacing the current venue in Schaffhausen after no licence application was submitted.’’

The collaboration among all Swiss casinos as part of the association is expected to bring about numerous benefits for the industry, according to Pfister. Marc Baumann, a board member of Swiss Casinos, also expressed positivity about the collaboration, especially in navigating the changing landscape brought about by the online casino industry.

Revenue Trends: Land-based vs. Online

The revenue trends in Switzerland’s gambling sector show an interesting contrast between land-based and online casinos. In 2023, there was a slight decline in revenue from land-based venues, amounting to CHF 623 million. However, online casinos experienced significant growth with a 14.3% increase in gross gaming revenue (GGR), totaling CHF 286 million.

Despite the revenue shifts, casinos in Switzerland continued to contribute significantly to the state through taxes. In 2023, there was a 3% increase in tax contributions, amounting to CHF 409.3 million. Over the past two decades, Swiss casinos have contributed over CHF 8 billion in taxes, with a substantial portion going towards the country’s AHV pension system.

Lottery Performance and Social Contributions

In addition to the casino sector, the lottery segment in Switzerland also saw noteworthy developments. The Loterie Romande public lottery reported an increased net profit of CHF 5.1 million for 2023. This positive outcome allowed the lottery to allocate a record CHF 243.7 million to various charitable causes and initiatives. Despite a slight drop in gross gaming revenue (GGR) from the previous year, the lottery’s strategic cost reductions led to improved profitability.

Looking ahead, the Swiss gambling industry is poised for further growth and evolution. The granting of new licenses and the increasing collaboration among casinos through industry associations are indicative of a dynamic and progressive sector. As online gambling continues to gain traction, casinos and lotteries are adapting their strategies to cater to changing consumer preferences while maintaining their commitment to social responsibility and regulatory compliance.

“This result can be attributed in particular to the rigorous management of operating costs, the strengthening of our digital offering, and – with the launch of the European draw game EuroDreams in October 2023 – the diversity of our product range,” Fournier said.

Source:

”Switzerland federal council grants all casinos new licences from 2025”igamingbusiness.comMay 24, 2024.

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