Investigation leads to illegal gambling bust in Switzerland

An illegal gambling den has been busted following two house searches by Swiss authorities.

A joint operation by the Swiss Federal Casino Commission (ESBK) and police authorities led to two addresses being searched in St Gallen and Zürich, with multiple assets being seized as a result.

Police uncovered two gambling rooms in Uznach, St Gallen, consisting of two slot machines and a poker table. Authorities confiscated all gambling equipment, together with various electronic devices and over CHF 10,000 (£9,300) in cash.

A total of 26 people were found on the premises, with 20 of them being subjected to questioning on the spot. One person held for questioning was described as “the local manager” by the ESBK, but it’s unclear whether they are the leader of the illegal gambling ring.

Around CHF 5,000 in cash was found on their person, together with CHF 5,000 more in their vehicle. As a result, the main suspect’s house was also searched later. If found guilty, they are facing up to five years imprisonment or monetary fines under Switzerland’s Money Games Act, which strictly prohibits gambling without a licence.

What’s the Swiss market like?

Switzerland keeps a very tidy garden when it comes to gambling regulations. The market in its form is relatively new, having been re-regulated with the Federal Act on Gambling in 2019.

Supervisory duties are split between federal and local authority levels, with land-based casinos being regulated by the central government, while sports betting and skill-based games are under the control of the 26 cantons (states) – each with its own constitution and legislature.

Online casino games are permitted, but only if they’re offered by a licensed provider affiliated with a land-based casino. This also applies to cross-canton operations.

Other large-scale online gambling like lotteries and sports betting can only be conducted by the two national lottery operators – Swisslos and Loterie Romande. There are also two regulators – the ESBK oversees land-based gambling and online casino, while Gespa deals with the intercantonal gambling.

The re-regulation forced international B2C operators present in the market before 2019 to withdraw due to the then-implemented cool-down period that barred them from offering Swiss-facing products or becoming major business partners with local entities for the next five years. Now that this period has ended, Switzerland offers legitimately lucrative opportunities for those looking to expand across Europe.