Taxation: 40% + on casino profits

1) TL; DR

In Switzerland, the casino tax is levied not on accounting profit, but on gross profit from games (GGR) and is progressive: basic from ~ 40% and higher as the annual GGR grows, with very high limits for the largest sites. Proceeds go primarily to AHV (state pension insurance); for type B casinos, part goes to the canton/commune of presence. Online casinos (since 2019) are subject to the same GGR tax principle in conjunction with a terrestrial operator's license.

2) What exactly is taxed: GGR, not "net income"

Object of taxation - GGR (Gross Gaming Revenue): difference between bets and winnings paid (before deducting operating costs).

This design minimizes the risks of "optimization" through costs and ensures a stable fiscal flow.

3) Progressive scale: "40% + as you grow"

The baseline is about 40% of the annual GGR.

Further - progression: as the GGR increases, the rate rises in steps/formula, reaching very high limit values for the largest revolutions.

The logic is simple: the larger the scale, the higher the rate, which supports social balance and AHV funding.

💡 Important: formula progression and the upper limit of the rate are legally fixed; exact mathematics depends on the volume of GGR and the type of license.

4) Type A vs type B: what is the difference

Type A (large venues): a complete set of games and limits, a nationwide progression of "40% +" to the upper limit is applied.

Type B (regional/resort casinos): more "boutique" profile and limits; part of the tax revenues is additionally directed to the canton/commune of casino accommodation (in addition to AHV).

5) Online casinos from 2019

Online activity is only allowed as an extension of the land casino license.

The tax logic is preserved: the tax on GGR online casinos is calculated according to the current rules for the corresponding licensee.

This equalizes offline and online in terms of fisk, RG and compliance.

6) How this affects the operator's economy

With the base 40% and the progression higher, the effective tax burden is growing markedly with scale.

Unit economics is built around marginality after: GGR tax → payment commissions → content/platform → marketing → personnel/information security → RG/AML.

The strategy is quality and efficiency, not a race for unbridled growth:

optimization of payments/payment processes;
control of content costs and payment rails;
emphasis on retention, VIP service and eventfulness rather than expensive performance marketing.

7) Revenue Breakdown: AHVs and Regions

The main beneficiary is AHV: the casino's GGR tax serves as a stable source for the pension system.

For types B, part of the funds is received by the canton/commune, which creates a local socio-economic effect (tourism, employment, development projects).

8) Reporting, control and sanctions

Operators regularly report on GGR, with a breakdown by verticals and sites; checks and audits are applied.

Supervision ensures correct calculation and payment; for violations - prescriptions, fines, up to restrictions and suspension of the license.

9) Practical advice to the operator

Fin model: lay the "ladder" of progression and stress scenarios on GGR growth (and rates).

Operational control: transparent accounting, anti-fraud, correct classification of games, stable logs.

Game portfolio: RTP/engagement balance taking into account tax burden; test the mix of verticals.

RG/Compliance: The higher the maturity of the processes, the less reg-risks and unplanned costs.

10) Approach comparison (brief)

Unlike jurisdictions with a net income tax, Switzerland uses a GGR tax with a high progression.

This gives the state predictable revenues, and the market an incentive to a high-quality, sustainable model, where scale is not an end in itself.

11) Horizon to 2030

AHV's progressive funding structure and priority is expected to remain.

Technical clarifications of calculations/reporting are possible, but the fundamental logic "GGR-tax 40% + with progression" will remain basic.

12) The bottom line

Swiss casino taxation is a progressive GGR tax: starting at about 40% and above as turnover grows, with funds prioritized to AHV and regional economies (for type B). The model evens out offline and online, encouraging not extensive growth, but complimentary efficiency, service and trust.