Swiss Regulator Warns of Rising Illegal Gambling in 2025
Illegal Online Gambling Expands in Switzerland – Regulator Warns of Growing Pressure on Licensed Casino Market
Key Takeaways
- Switzerland’s casino regulator ESBK reports that illegal online gambling increased significantly in 2025.
- Land-based casino gross gaming revenue fell 3.9% to CHF564.9m, while online revenue rose 1.2% to CHF313.6m.
- Combined casino gross gaming revenue declined 2.1% year-on-year to CHF878.4m.
- The ESBK conducted 28 searches, opened 105 criminal investigations and ordered the blocking of 580 illegal domains in 2025.
- Casinos generated nearly CHF396m in gaming taxes, with most funds allocated to social insurance schemes.
New Concessions Framework Reshapes Swiss Casino Market
In 2025, Switzerland introduced a new concessions framework governing casinos across the cantons under a 20-year licensing cycle. The reform affected both land-based and online operations and led to a series of structural changes in the market.
By the end of 2025, Switzerland had 20 land-based casinos. Of these, nine operated online casino brands. Casino Locarno secured the tenth online casino licence under the Federal Gambling Act, known as the Geldspielgesetz, and is set to expand the regulated digital offering.
The new concession period also resulted in closures and market exits. Casino Winterthur entered the market following the closure of Casino Schaffhausen. Casino St Moritz ceased operations permanently after financial difficulties. In the online segment, Casino Basel and Casino Montreux exited the market, while Casino Mendrisio launched its online casino after receiving regulatory approval.
These changes reflect an ongoing adjustment process as operators respond to evolving consumer behaviour and shifting commercial conditions under the updated licensing regime.
Revenue Decline Despite Online Growth
Financial results from 2025 show diverging trends between land-based and online casinos.
Land-based gross gaming revenue declined by 3.9% to CHF564.9m. Online casinos recorded growth of 1.2%, reaching CHF313.6m. Despite the online increase, total combined gross gaming revenue fell by 2.1% year-on-year to CHF878.4m.
The figures indicate that online growth did not fully offset the decline in retail casino performance. This shift in revenue distribution highlights the increasing role of digital channels within Switzerland’s tightly controlled gambling framework, which permits only licensed land-based casinos to offer online casino games.
For users evaluating licensed operators, this structure means that online casino brands in Switzerland remain directly linked to domestic land-based concession holders.
Tax Contributions Remain Significant
Although overall revenue declined, regulated casinos continued to generate substantial public income.
In 2025, casinos paid almost CHF396m in gaming taxes. Approximately CHF353m was allocated to Switzerland’s Old Age and Survivors’ Insurance and Disability Insurance schemes. A further CHF43m was distributed to cantons hosting B-concession casinos.
These allocations underline the fiscal importance of the regulated casino sector within Switzerland’s public financing model. The concession system is designed not only to control market access but also to channel gambling revenue into social insurance and regional budgets.
Regulator Reports Surge in Illegal Gambling Activity
Alongside market restructuring and revenue shifts, the Swiss Federal Gaming Board, known as ESBK, issued a warning about the expansion of illegal online gambling.
According to ESBK President Fabio Abate, the offer of illegal online games increased significantly in 2025 and now affects the whole of Europe. He stated that unlicensed platforms are neither safe nor transparent and expose players, particularly younger consumers, to greater risks. He also noted that illegal gambling undermines the consumer protection objectives embedded in Switzerland’s concession model.
In response, the regulator intensified enforcement measures throughout the year. The ESBK conducted 28 searches, initiated 105 criminal investigations and completed 98 cases. It also ordered the blocking of 580 illegal gambling domains targeting Swiss consumers.
Abate highlighted that many investigative powers currently rely on administrative criminal legislation dating back to 1974. He stated that authorities must have appropriate means to counter a phenomenon that is spreading rapidly and described illegal gambling as a highly profitable source of income for organised criminal groups across Europe’s wealthiest markets.
Review of Player Protection and Exclusion Register
Beyond enforcement, the ESBK has started reviewing elements of Switzerland’s player protection framework.
The regulator is examining how the national gambling exclusion register operates, particularly in cases where customers are excluded after refusing to provide financial information rather than showing clear signs of gambling related harm.
While maintaining that Switzerland’s high standards of player protection must be preserved, Abate indicated that safeguards should not inadvertently encourage consumers to migrate to illegal gambling websites. The review therefore focuses on balancing protective measures with the objective of keeping players within the regulated environment.
Call for Stronger Cross Border Cooperation
Looking ahead, the ESBK considers cross border cooperation increasingly important in addressing illegal gambling.
Abate concluded that deeper collaboration between European regulators, combined with more effective prevention measures, will be essential to protect licensed markets against the growing influence of unlicensed operators.
The warning positions illegal online gambling not only as a domestic enforcement issue but as a broader European challenge affecting regulated markets operating under strict licensing systems.
Our Assessment
The ESBK’s 2025 report shows a regulated Swiss casino market undergoing structural change under a new 20-year concession framework, with online revenue rising modestly while land-based revenue declines. At the same time, enforcement data point to a significant increase in illegal online gambling activity, prompting expanded investigations and domain blocking measures. The regulator is reviewing both its investigative tools and aspects of its player protection system, while calling for stronger cross border cooperation to safeguard the integrity and fiscal contribution of the licensed casino sector.
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