Swiss online gambling referendum takes place this weekend
News on 8 Jun 2018
News on 8 Jun 2018
Switzerland’s coalition of youth wings and political parties will have their say Sunday June 10 on new gambling proposals from government that would exclude foreign companies from the online gambling market, making it the exclusive preserve of local land casino operators.
The Swiss government was forced to take the issue to a referendum following a petition of over 50,000 organised by the younger demographics between the ages of 18 and 29 (see previous reports) who fear that the government’s restrictive gambling proposals constitute censorship of the internet.
The proposals have already been approved by the Swiss parliament.
The changes to Swiss gambling laws will position them among the most restrictive in Europe, triggering criticism that the government is turning Switzerland into an ‘authoritarian state’.
Defending the online gambling exclusivity given to local land casino operators, Swiss Justice Minister Simonetta Sommaruga said that the restriction was essential to ensure that gambling companies abide by the government’s rules, thus reducing the risk of gambling addiction, which annually costs the government around half a billion Swiss francs (US$500,000).
It will also ensure that the government’s tax requirements are fulfilled, she said; last month Sommaruga told an online forum that Swiss punters spend around 250 million Swiss francs annually on unregulated betting sites abroad that do not pay Swiss taxes.
Opponents of the government view say that the country could gain a greater tax harvest by opening the online market to the many foreign online companies prepared to licence and pay taxes in a regulated jurisdiction.
Whether the youth demographic will be successful in the referendum is uncertain; recent polls have indicated that 58 percent of Swiss voters will likely support the government proposals. The average age of parliamentary lawmakers in Switzerland is 53.
Swiss voters in Sunday’s referendum will also be asked whether they support a “Sovereign Money” proposal from government which would legally bar any institution besides the central bank from creating new money.
The proposed law changes the current situation, where the central bank issues only around 10 percent of the money in circulation, with the rest issued virtually by private banks and other institutions when they provide credits to clients.
Supporters of the change argue that the present system permits institutions to lend more than they hold in reserves, raising the risk of another financial crisis similar to the crash of 2008.
Opponents of the sovereign money concept, who presently have the upper hand according to the polls, say the proposed changes threaten the nation’s financial stability.
