Avenir Suisse, an economics and social issues think tank, highlights the politicization and inefficiency of gambling in Switzerland. The distribution of gambling revenue is determined by politicians, leading to a proliferation of lottery funds. The report suggests that the allocation of these funds does not align with the public utility concept outlined in the constitution. Moreover, tax revenue generated by casinos does not necessarily benefit the cantons where they are located. The dual role of many cantons as operators and regulators further complicates the system. The management costs of lottery funds are high, and the current system incurs substantial friction costs.
The rise of online gambling exacerbates the challenges posed by Switzerland’s regulatory framework. The study argues for the government to focus on regulation rather than operating gambling establishments and to directly redistribute the proceeds of gambling. It also recommends merging the two supervisory bodies, Eidgenössische Spielbankenkommission (ESBK) and Gespa, into a single regulator. A modular approach to regulation is proposed, shifting the focus to online gambling and treating land-based gambling as an exception.
To accommodate the expansion of the industry, Switzerland plans to introduce two additional licensing regions, bringing the total number of licensees to 23.
