ESBK has issued a stark warning that illegal gambling is posing a significant threat to the sustainability, integrity and economic output of Switzerland’s regulated casino market.
It comes following the 2025 launch of a new concessions framework governing Swiss casinos operating across the cantons of the Swiss Confederation.
Switzerland continues to operate one of Europe’s most restrictive gambling regimes, permitting only licensed land-based casinos to offer online casino games. By the end of 2025, the market comprised 20 land-based casinos, of which nine operated online casino brands, with Casino Locarno set to become the tenth online operator.
Under the new licensing regime, Casino Locarno secured the tenth online casino licence under the Federal Gambling Act (Geldspielgesetz), further expanding Switzerland’s tightly controlled digital casino market.
Publishing its 2025 Annual Report, the ESBK reflected on the first year of the new 20-year concession cycle, which reshaped both the land-based and online casino sectors through a series of new licences, closures and operational changes.
The first year of the concessions period also highlighted growing commercial pressures on retail casinos. Land-based gross gaming revenue (GGR) declined 3.9% to CHF564.9m, while online casinos continued to gain momentum, recording 1.2% growth to CHF313.6m. Combined casino GGR reached CHF878.4m, representing a year-on-year decline of 2.1%.
Despite softer trading, Switzerland’s regulated casino sector continued to make a significant contribution to public finances. During 2025, casinos generated almost CHF396m in gaming taxes, with approximately CHF353m allocated to Switzerland’s Old Age and Survivors’ Insurance (AHV/AVS) and Disability Insurance schemes. A further CHF43m was distributed to cantons hosting B-concession casinos.
The changing economics of the market were also reflected in a series of structural developments. Casino Winterthur entered the market following the closure of Casino Schaffhausen, while Casino St Moritz permanently ceased operations after financial difficulties. Casino Basel and Casino Montreux both exited the online casino market, whereas Casino Mendrisio successfully launched its online casino following regulatory approval.
Reflecting on the first year of the concessions period, ESBK President Fabio Abate said the Swiss casino landscape had undergone “considerable changes” during its opening year as operators adapted to evolving consumer behaviour and changing commercial conditions.
However, Abate warned that an even greater challenge now confronts regulated gambling across Europe.
“The offer of illegal online games continued to increase significantly in 2025,” he wrote. “This phenomenon now affects the whole of Europe.”
According to Abate, illegal gambling has become far more than a commercial threat to licensed operators. Unlicensed platforms are “neither safe nor transparent”, expose players—particularly younger consumers—to greater risks and undermine the consumer protection objectives underpinning Switzerland’s concession model.
The regulator responded by significantly increasing enforcement activity throughout the year. The ESBK conducted 28 searches, opened 105 criminal investigations, completed 98 cases and ordered the blocking of 580 illegal gambling domains targeting Swiss consumers.
Abate also questioned whether Switzerland’s legal framework remains sufficiently equipped to combat increasingly sophisticated illegal gambling operations, noting that many investigative powers continue to rely on administrative criminal legislation dating back to 1974.
“The investigative authorities must have appropriate means to counter this phenomenon, which is spreading rapidly,” he wrote, warning that organised criminal groups have identified illegal gambling as a highly profitable source of income across Europe’s wealthiest markets.
Alongside enforcement, the ESBK has begun reviewing elements of Switzerland’s player protection framework. The regulator is examining the operation of its national gambling exclusion register, particularly cases in which customers are excluded after refusing to provide financial information rather than exhibiting clear signs of gambling-related harm.
While stressing that any reforms must preserve Switzerland’s high standards of player protection, Abate indicated that the framework should also ensure safeguards do not inadvertently encourage consumers to migrate towards illegal gambling websites.
Looking ahead, the ESBK believes safeguarding Switzerland’s regulated gambling model will increasingly depend on stronger cross-border cooperation.
Abate concluded that deeper collaboration between European regulators, alongside more effective prevention measures, will be essential to protecting licensed markets against the growing influence of illegal gambling.
