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For the second time after 2019, the two Swiss gambling supervisory authorities are going to publish a study on gambling behaviour and addiction in Switzerland. As previously, the Swiss Research Institute for Public Health and Addiction (ISGF) has been commissioned with the study. The data for the ISGF study are provided by the Swiss Health Survey 2022 of the Federal Statistical Office.
 

The final database including the plausibilised data of the telephone and written survey along with appropriate weightings will be ready for analysis towards the end of 2023. Publication of the study is expected in autumn 2024.
 

The first ISGF study, based on the Swiss Health Survey of 2017, was published on 8 October 2019. It is available here (in German).

Swiss gambling regulation distinguishes between chance-based and skill-based gambling machines. The former are allowed in casinos only, with the exception of the games provided by Loterie Romande and Swisslos. Skill-based games, in contrast, are permissible also in catering establishments such as restaurants and bars. To find out which gambling machines have been approved by Gespa as skill-based games, consult the lists published here.

Only legal persons in possession of the necessary (operator and game) licences issued by Gespa are allowed to operate skill-game machines. For licensing requirements, see Art. 22 and Art. 24 of the Gambing Act. Gespa provides application forms for operator and game licences on request.

Gespa requires operators to ensure that skill-based gambling machines are clearly marked as such, that player protection information as defined in the licensing procedure is put on display, and that skill-game machines are set up only in places where they are in the field of vision of staff or where staff is otherwise able to survey their use in appropriate ways. With the skill-game machines that have been approved up to this point, the minimum age for playing has been set at 18 years.

The cantons may prohibit the operation of skill games at any time by means of legislation (Art. 28 Gambling Act). The cantons of Geneva, Vaud, Neuchâtel, Jura, Valais and Ticino have done so.

To prevent excessive gambling and control gambling behaviour, the two lottery companies Swisslos and Loterie Romande implement a holistic social concept. The organisers are legally obliged to take appropriate measures to protect players from excessive gambling. Article 84 of the Federal Act on Gambling stipulates that organisers of large-scale games must submit an annual report to the competent enforcement authority on the effectiveness of the measures taken to protect players from excessive gambling.

As every year, Gespa has analysed the effectiveness reports of the two lottery companies and drawn up an evaluation report based on them. You can find the report on 2022 here.

Based on the Federal Act on Gambling, Gespa is mandated to prepare an annual report on the use of net revenues from lotteries and sports betting by the cantons.
 

The reporting aims to make the process of the cantons' use of net revenues transparent. All cantons as well as the Principality of Liechtenstein participated in the Gespa survey. Interested parties should be able to trace the allocations in the individual cantons and, if necessary, to make further enquiries directly and specifically with the individual cantons. Gespa itself does not have the authority to influence the use of funds in the cantons in specific individual cases or to qualify them in terms of their conformity with federal law.
 

The report and the data sheets published by the cantons show in advance for which areas (sport, culture, etc.) the funds were used. In addition, information is provided on the allocation and control processes in the individual cantons. Furthermore, a brief assessment of the completeness and stringency of the data provided is made.
 

The data collected from the cantons over the year 2022 and Gespa's summary report can be found here.

In its annual report, Gespa looks back on its supervisory activities and relevant market developments in 2022. Along with the annual report, Gespa publishes the statistics on large and small-scale gambling 2022.
 

In the area of large-scale games, the focus in the year under review was once again on enabling the development of an attractive gambling offer in line with the market by means of supervision with a sense of proportion - and at the same time ensuring that the legal requirements, which are intended to guarantee safe and transparent gaming, are respected. The net revenues generated by lotteries and sports betting amounted to CHF 733 million. This corresponds to an increase of 1% compared to the previous year. The funds generated from lotteries and sports betting flow to the cantons and are used to support charitable projects.
 

In the sub-market of skill-game machines, another two operators were granted an operator's licence. At the end of the reporting year, a total of 17 operators of skill-game machines were licensed. In the reporting year, supervisory proceedings were initiated against two operators in connection with the licensing requirement of good reputation and in which the withdrawal of the operator licence is being examined.
 

In the field of fighting illegal activities, Gespa was once again involved in numerous investigations in cantonal criminal proceedings and accompanied numerous raids in various cantons. For the purpose of blocking access to foreign online offerings, Gespa published two updated blocklists in 2022. At the end of 2022, the access to a total of 245 domains was blocked.
 

The annual report, the statistics on large and small-scale gambling as well as the media release are available here.

Since 2019, Gespa has had the function of the national platform in fighting against the manipulation of sports competitions and is the reporting office regarding competition manipulation.
 

In total, Gespa received 67 suspicion reports on 57 sports events. The number of reports decreased significantly compared to the previous year, where Gespa received 158 reports regarding 138 events.
 

There are several possible reasons for this decrease. On the one hand, the coordinated international efforts to combat manipulation are beginning to bear fruit. On the other hand, the sports organisations' obligation to report suspected cases is usually linked to the fact that bets are offered on the corresponding competition in Switzerland. Gespa continuously monitors the permitted betting offer and adjusts it if necessary in order to enable safe and transparent betting. The decline in the number of reports thus also speaks for the integrity of the sporting events on which bets can be placed at the two lottery companies. At the same time, however, it is undoubtedly also the case that the manipulators are always looking for and finding new ways to make the detection of suspicious cases more difficult.

The detailed numbers and further explanations on the topic of competition manipulation can be found in the annual review of the national platform.

In recent months, Gespa has been repeatedly confronted with the question of whether gift vouchers may be awarded as prizes in raffles according to Art. 41(2) Federal Gambling Act (a subtype of small lotteries), in which only non-cash prizes are permitted. What exactly is at issue here and Gespa’s role in this regard is briefly explained in what follows.
 

With the Federal Gambling Act (BGS), the legislator aimed to ensure that all proceeds from lotteries are used for charitable purposes and that gambling-related risks – such as that of fraud – are minimised. To this end, a licensing requirement was imposed also for small lotteries, along with a number of further rules (such as an accounting obligation vis-à-vis the authorities). Responsible for licensing and supervision are the cantons.
 

For the special case of lotteries at social events where only non-cash prizes (such as the classic food baskets) are awarded and where the total value of stakes does not exceed CHF 50000, the legislator has made room for exceptions, since such events hardly pose any relevant gambling risks. Accordingly, neither licensing nor accounting is required.
 

Lotteries with vouchers as prizes, however, differ in character from events with non-cash prizes and are associated with greater risks. This is true of some of the raffles held at small-scale events; but the problem was accentuated in the past by the emergence of actual gambling venues where money games were offered several times a week throughout the year, exclusively with vouchers as prizes. Going by the name of raffles, these events were neither officially approved nor was proper accounting ensured. Where the proceeds ultimately went was therefore not transparent.
 

Against this backdrop, Gespa, in its role as supervisor of small-scale games in the cantons, informed the cantons in autumn 2022 that raffles without a formal license featuring vouchers as prizes are against federal law. Gespa asked the cantons to adapt their practice accordingly if necessary. Implementation of this requirement is the responsibility of the cantons.
 

To restate it plainly: vouchers (as well as precious metals, which raise similar questions) and also cash prizes continue to be permissible in small lotteries under federal law. However, where such prizes are awarded, an authorisation and accounting obligation, along with further provisions applicable to small lotteries, apply (for example, a maximum of two prizes per organiser per year are allowed – and where the actual lottery is run by third parties, these third parties must also pursue charitable purposes). All of this serves to ensure that the proceeds from lotteries are used in their entirety for charitable purposes.

The court decisions 2C_336/2021, 2C_337/2021 and 2C_338/2021 confirm the blockings ordered by Gespa in each of the three proceedings. The technical means implemented by Gespa in cooperation with telecommunications service providers are expressly qualified as proportionate and lawful. Furthermore, the Federal Court makes it clear that Gespa – contrary to the opinion of the complainants – is authorised to impose costs on unsuccessful parties in objection proceedings. In proceeding 2C_336/2021, the complainant disputed whether a game offered by them at all fell within the scope of the Gambling Act. On this point, too, the Federal Court fully confirmed Gespa's position that a money game was at hand.
 

The decisions are the first Federal Supreme Court rulings to deal with core issues of substantive law regarding the Gambling Act, which has been in force since 2019. Gespa welcomes the concise and comprehensive rulings, which not least contain useful reflections on the concept of gambling. The decisions are available at www.bger.ch.

On 1 January 2022, Jean-Michel Cina took over as President of Gespa. He succeeds Jean-François Roth, who had been in post since Gespa (formerly Comlot) was founded in 2006.

Due to further expiring terms of office, Gespa also had to say goodbye to its vice-president and addiction prevention expert, Bruno Erni, and to law professor Jean-Marc Rapp at the end of 2021. Mirjam Weber (addiction prevention expert) and Pascal Mahon were elected to the supervisory board in their place.
 

Letters and e-mails with false promises of lottery or other winnings sent to large numbers of recipients are a widespread nuisance. Senders often purport to be well-established domestic or foreign lottery organisations. Gespa emphatically warns against reacting to such messages in any way. At some point, transfer of the promised prize will require making an advance payment (of a “service fee”, a “tax deposit” or whatever).
 

A similar phenomenon are invitations to coach tours promising giveaways of considerable value. Such promises are made in terms of eye-catching slogans, while the details – which state for instance that participants are mere “nominees” for prizes – are hard to detect and put in small print. Recipients are further lured by claims that the tour is the "last chance" to take hold of the promised object. This type of event amounts to advertising campaigns that use improper means of persuading audiences to make a purchase. Instead of returning home with a prize, many participants will be led to buy useless products at excessive prices.
 

Beware of such dealings!
 

The methods described often verge on fraud that is open to criminal charges, although chances for conviction are slight. The 2012 revision of the Federal Act against Unfair Competition has provided the Swiss State Secretariat for Economic Affairs SECO with new means of intervention to combat improper commercial practices. Thus complaints may be lodged with SECO or Schweizerische Lauterkeitskommission (Swiss commission for fairness). SECO offers alert lists and advice for consumers.

A loot box or loot crate is basically a virtual container (a chest, a bag, etc.) in a video game that contains other virtual items (such as skins, characters or emotes). In so far as their precise content is usually unknown before opening, loot boxes are comparable to lucky dips or football sticker packs. There are many different ways in which loot boxes are made available and opened in video games (free of charge or payable).

Paid loot boxes are viewed critically by many youth and consumer protection organisations. Accordingly, the question arises whether selling loot boxes is permissible under the Gambling Act.

Art. 3(a) of the Gambling Act defines gambling as games that hold out prospects for monetary prizes or other monetary benefits in return for wagering a monetary stake or concluding a legal transaction. There is no general answer to the question whether loot boxes count as gambling in this sense, given that they come in various forms in different video games.

Although loot boxes are usually chargeable, there is often no monetary benefit in store for the player. The point in buying or opening such loot boxes is rather to gain an advantage in the game (so-called pay-to-win) or to give new appearances to in-game characters or equipment by means of skins. There are, however, offers related to loot boxes that do fall under the concept of gambling – among others, so-called skin gambling (see following text). With regard to those, Gespa has ordered access blockings in the past.

There are thus certain constellations where points of contact between loot boxes and gambling arise. However, since many loot box designs do not constitute money games in the sense of the Federal Act on Gambling, the latter provides no suitable instruments to counter undesirable social consequences related to loot boxes in an efficient and comprehensive manner.

Skins as understood by Gespa are virtual objects in video games which serve to change the appearance of game characters or their weaponry. Skins are usually purely aesthetic elements that have no impact on the behaviour of the objects to which they are applied.

Skins from certain video games are the subject of skin gambling on third-party websites. Broadly speaking, skin gambling amounts to using skins – as virtual currency – either to play casino games such as roulette and coin flipping, or to bet skins on eSport events (so-called skin betting). Losing players lose the skins wagered. Winners either receive skins or, depending on the website, can have their winnings paid out in fiat money. Outcomes are a matter of chance or, in the case of skin betting, depend on factors intransparent to the player.

Websites offering skin gambling and skin betting are online gambling operators that require a licence or, depending on the details of the game, a permit from the Federal Gaming Board FGB. Since 1 July 2019, access to illicit websites may be blocked.

Gespa is the supervisory and enforcement authority for skill-based gambling run intercantonally, online or by automated means. As such, Gespa will usually be the right contact for questions concerning the legal situation of eSports events.

eSports is a fairly recent and somewhat elusive phenomenon that comes in many varieties. It may take on features of gaming and gambling, but also, as the case may be, of a fully-fledged sports event; it can be run at relatively clear-cut points in time and space (as e.g. with eSports tournaments), but also online or in hybrid forms. A general and abstract legal assessment of eSports is impossible, given that the concept so far lacks precise definition.

The Swiss Federal Office of Sport (BASPO) currently denies eSports the status of a genuine sport. According to the Office, eSports is just not broadly perceived as a form of sport yet; moreover, it is at odds with the Federal Sport Promotion Act, whose aim as defined in Art. 1 is to increase sports and exercise activities.

As a rule, eSports events will likely qualify as skill-based gambling in the sense of Art. 3(a,d) of the Gambling Act, provided they involve monetary stakes and prizes. Skill-based gambling requires licensing only when run intercantonally, online or by automated means. Where an eSports event qualifies as a wholesale sports competition, it falls outside the scope of application of the Gambling Act (Art. 1(2c)).

Detailed descriptions of planned events may be submitted to Gespa anytime. After thorough review of the documents, Gespa will inform you whether gambling law requires your event to be licensed or if you may proceed without any formal permission.

Both directly and via distributors, WebÔSwiss SA offers its gaming terminals to operators of public facilities such as bars, cafés and restaurants, claiming that these machines are licensed by Gespa. Although the company (or distributors) sometimes present a document – dating from 28 February 2017 and signed by a lawyer – that suggests otherwise, Gespa has never issued any “certificate” or license whatsoever for these machines.

Gespa emphasizes that only Loterie Romande and Swisslos are licensed to offer lotteries and sports betting in Switzerland, and that operating skill games is permissible only in certain cantons. In addition, we point to the fact that casino games may be offered legally only by casinos and that therefore bars, cafés and restaurants cannot figure as lawful operators. If you have any questions in this connection, please refer to the Federal Gaming Board, which is competent if there are indications of an unauthorized operation of casino games.

According to Art. 130 of the Federal Act on Gambling, which deals with “crime and offences”, the illegal execution, organization or provision of these types of games is punishable by financial penalties or custodial sentences of up to 3 years. This applies not least to operators of public facilities where such games are played.

On 1 January 2021, the Concordat on Gambling (GSK) has entered into force. The Concordat replaces the Intercantonal Convention on Licensing and Supervision of Intercantonal and National Lotteries and Bets IVLW. All litigation pending with Comlot and all of Comlot’s rights and responsibilities have been transferred to Gespa.
 

Gespa is an institution under public law. Its executive body, the Supervisory Board, replaces the former Commission. The Comlot secretariat has turned into the Gespa head office.