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Swiss Federal Act on Games of Chance
1) Introduction: Why two laws, not one
In the Swiss gambling system, there have long been two parallel federal frameworks:- 1923: Federal Lottery and Commercial Betting Act (historically "Lotteriegesetz," LG), which enshrined the cantonal model for lotteries/wagering and the targeted use of their income for public purposes.
- 1998: The federal Casino and Casino Gambling Act (Spielbankengesetz, SBG), which lifted century-old restrictions and returned legal casinos under strict federal supervision.
Together, they formed the "skeleton" of Swiss regulation before the advent of the Money Gaming Act (2019), which integrated offline and online segments into a single modern architecture.
2) Historical context: from prohibition to controlled legalization
1874 - the new Federal Constitution enshrines a nationwide ban on gambling houses (casinos).
1923 - against the background of the casino ban, the federation accepts Lotteriegesetz: lotteries and bets are allowed, but strictly under cantonal control and with the obligatory socially useful purpose of income (sports, culture, social projects).
1993 - political U-turn: a course towards the controlled return of casinos for the sake of a transparent economy, tourism and taxes.
1998 - Spielbankengesetz adopted: land casinos (types A/B) are returned, a modern federal supervisory system and the "Swiss standard" Responsible Gaming are being created.
2000s - a new generation of casinos opens; The offline industry works with stringent player protection and AML requirements.
2019 - Federal Act on Money Games goes into effect: Merges lotteries/wagering/casinos, legalizes online casinos for ground-licensed operators and formalizes the blocking of unlicensed sites.
3) What the 1923 law established (Lotteriegesetz, LG)
Subject of regulation: lotteries, sports sweepstakes and commercial bets.
Control logic:- Cantons are key stewards: they issue permits, organize control and distribute net income for public purposes.
- Loterie Romande (French-speaking Switzerland), Swisslos (German and Italian-speaking parts).
- Social contract: the admissibility of lotteries/bets is justified by public benefit - sustainable financing of sports, culture and social programs.
- Advertising and sales: traditionally restrained rules for promotion and distribution channels (and later - adaptation to digital channels under cantonal supervision).
4) What the 1998 law brought (Spielbankengesetz, SBG)
A major twist: The revival of legal casinos under federal supervision after more than a century of prohibition.
Key elements:- Type A and B licenses.
Type A (large city/resort venues): full range of tables and machines, high limits, targeting a wide audience (within RG).
Type B (regional/resort sites): restrictions on the nomenclature and limits of bets/winnings, a more "boutique" profile.
Federal Oversight (ESBK). An independent Federal Casino Commission (Eidgenössische Spielbankenkommission) has been created, responsible for issuing/renewing licenses, auditing the integrity of games (RNG), controlling AML/KYC, RG and sanctions.
Responsible play (RG). Self-exclusion, limits, staff training, behavioral risk monitoring, intervention protocols.
Casino taxation. A progressive gross gaming profit tax (GGR) in favour of AHV (Swiss state pension insurance fund) and the budget; the motive is public legitimacy and the "return" of industry to society.
Safety and integrity of games. RNG/slot certification, procedure control, logging and technical standards.
Online dimension (at that time). In 1998, the emphasis was only on offline: online casinos were not allowed then - the digital block was decided later by the law of 2019.
5) Separation of roles: federation vs. cantons
Federation (SBG 1998): Casino licenses and oversight, uniform standards for honesty and consumer protection, tax architecture in favor of AHV.
Cantons (LG 1923): lotteries and wagering; control of the organization and distribution of income in the public interest.
This two-circuit model allowed the country to combine tight control with sustainable financing of public goods.
6) 1998 effect on the industry
Return of resort formula. Casinos are again becoming an element of premium tourism (Zurich, Basel, Baden, Lucerne, Lugano, Montreux, St. Moritz, etc.).
Increased trust. A hard license + RG + integrity audit → a clear line between the "white" and "gray" segments.
Fiscal predictability. Regular AHV admissions, transparent reporting mechanisms.
Technological discipline. Early implementation of security, logging, incident management requirements is the foundation for the future "figure."
7) How it all came together in 2019 (Money Gaming Act)
Based on the LG 1923 + SBG 1998 bundle, the Swiss legislator by 2019 adopted a single law on "money games," which:- legalized online casinos for already licensed land-based operators, secured the blocking of unlicensed sites, unified RG/AML standards and advertising frameworks in a digital environment, while maintaining the public lottery/betting mission and federal control over casinos.
8) Key concepts and terms (for glossary)
Lotteriegesetz (1923, LG): federal lottery/betting frame, cantonal control, socially useful goals.
Spielbankengesetz (1998, SBG): federal casino framework, A/B licenses, ESBK supervision, GGR → AHV tax.
ESBK: Federal Casino Commission (casino regulator).
AHV: State pension insurance, recipient of part of taxes with GGR.
Responsible Gaming (RG): self-exclusion, limits, behavioral monitoring, staff training.
Money Gaming Act (2019): offline/online integration, unlicensed site blocking, RG/AML digital standards.
9) Result: "Swiss model" on the example of 1923 and 1998
Switzerland has built a phased, socially oriented system:1. 1923 - allow lotteries/bets subject to public benefit and cantonal control;
2. 1998 - return the casino with a strict federal license, liability and tax in favor of AHV;
3. 2019 - link offline and online, retaining player protection principles and a public dividend.
This evolution showed that the sustainability of the gambling market is not achieved by scale, but by the quality of regulation, transparency and social legitimacy.