Switzerland considering “good reputation” online gambling restrictions
VPN registrations by Swiss internet users rise by 20% since referendum result
The Swiss government is reportedly considering proposals that would bar local Swiss casinos from doing business with any online gambling supplier or technology firm that has previously dealt with Swiss gamblers.
Fresh from its referendum victory on the proposed Money Gaming Act (MGA), the so-called “good reputation” proposals would stop partnerships between Swiss casino operators and any provider who has had dealings in the Swiss market in the past five years.
Several of Switzerland’s current land-based casinos are owned by foreign companies which have well established online gambling operations, including the likes of Barrière, Casino’s Austria and Austrian gaming heavyweight Novomatic. The proposals would bar these companies from using their own technology to power licensed Swiss online sites.
These proposals are being considered along with a raft of other measures as the Swiss government gets ready for the full implementation of the MGA, which is due to take effect from January 2019.
Under the MGA, international online gambling operators’ websites are to be barred to Swiss citizens, with Swiss internet service providers being required by law to block the access to these websites and the Swiss government reimbursing them for any expenses incurred in doing so.
The news comes amid reports that the numbers of virtual private network (VPN) registrations in Switzerland have increased by as much as 20% since the Swiss government agreed to implement the MGA.
The use of VPN networks is banned by the EU, but Swiss punters can access these sites, allowing them to access unlicensed international operators independent of the main Swiss ISP’s.
Addressing the contrary nature of this rise when compared to the fact that 72.9% of Swiss voters supported the introduction of the MGA, Andres Glarner, partner at MME Legal said: “The majority of Swiss voters do certainly not represent the Swiss citizens regularly making use of online gaming services.
“Thus, it is expected that out of this ‘community’, a substantial amount will make use of VPN (and now seem to be preparing for the time the regulations enter into force, likely to be January 19).”
The European Betting and Gaming Association (EGBA), which has long opposed the MGA, has urged the Swiss government to “take stock of these statistics before pushing ahead with a planned policy reform which has already proven to be flawed. As we previously warned, the proposed law is counterproductive to consumer protection and is unsustainable given the cross-border nature of internet activity.”
The EGBA also called on the Swiss government to “design a modern policy for online gambling that allows all Swiss consumers to play safely within a Swiss regulated environment rather than protect the interest of a few incumbent operators.”