Smaller casinos hit the jackpot
The government is to tax Switzerland’s casinos on a sliding scale, with smaller gambling establishments paying less.
Large casinos will hand over 40 per cent of their takings, while small mountain casinos will pay 20 per cent.
Medium-sized gaming concerns will be taxed 30 per cent of their gross income.
The government’s decision, which was made on the recommendation of the justice ministry, is being seen as a favour to mountain tourist regions, many of which are suffering economically.
Legislation governing casinos in Switzerland allows for different levels of taxes to be set, depending on the size and income of the establishment.
But the lower rates are only a temporary measure: after four years, smaller establishments will also have to pay tax at 40 per cent.
And the lower rates will only apply to the first SFr20 million ($15 million) of taxable income.
Swiss casinos are divided into categories “A” – big establishments with no limits on bets, and “B” – smaller gambling houses with fewer than 150 slot machines.
Growing industry
Swiss voters agreed in 1993 to lift a ban on gambling, dating back to 1928.
Since then seven grand casinos have opened in Switzerland, in Lucerne, Bern, Baden, Lugano, Montreux, Basel and St Gallen.
Operators of these “class A” casinos are under no obligation to impose an upper limit on bets placed at their tables.
Meanwhile, there are smaller casinos in a number of famous alpine resorts, including St Moritz and Zermatt.
Medium-sized casinos operate in Fribourg, Bad Ragaz, and Interlaken.
While larger casinos clearly enjoy the biggest takings, the Swiss government regards all gambling establishments as lucrative sources of income.
Casinos are expected to contribute at least SFr150 million a year to Switzerland’s hard-pressed welfare system.
But opponents to the reintroduction of gambling have warned that the number of gambling addicts is sure to rise, leading to hardship for the families of those affected.
swissinfo with agencies
Swiss voters agreed to lift a ban on gambling in a referendum in 1993.
Tax income from casinos is set to exceed SFr150 million annually
“Class A” casinos have no upper limit on bets, while category “B” casinos are restricted to fewer than 150 slot machines.
There are currently seven casinos and 14 smaller gambling houses in operation in Switzerland.
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