Increase in Online Casino Fraud Thanks to Strict Laws?
Published by MyBettingDeals
June 10, 2019 8:21 am
The new gambling law provides for a strict legal situation in Switzerland. Casinos located in their own country can continue to offer their games as long as they are licensed. This applies not only to land-based establishments such as the casinos in Zurich and Neuchâtel but also to casinos that offer their games on the Internet.
Since 1 January 2019, local online casinos can request a license, which will take effect from 1 July 2019. Foreign providers are not permitted. The law was approved in a referendum in June 2018, with 73% of participants voting for the new regulation. In addition to casinos and gaming facilities, Swiss Internet betting providers are also affected: for the first time, they are now allowed to place their bets online, which is a huge gain for this industry.
Will this lead to more fraud?
Customers could be disadvantaged by the new law because of the possibility of fraud. In many gaming operators are now excluded from the Swiss market, this could lead to illegal activities. Finally, the market is very lucrative: in 2017, according to Statista.com, the gross gaming amount for casinos was CHF 682 million. A not inconsiderable sum. Are users now potentially confronted with more fraud? It looks as if this cannot be ruled out. More illegal websites could appear and jeopardize the joy of playing. This is precisely why it is so important to find out about reputable casinos.
Serious websites that examine online casinos in more detail in tests, such as betrugsverdacht.com can help with questions and draw attention to warning signs. The website’s testers create detailed reports on individual game websites, revealing the negative aspects as well. The Federal Casino Commission could also help with questions on esbk.admin.ch. This will allow doubting players, whether they already have experience or are new to the world of iGaming, to calm their nerves and easily understand issues such as software manipulation.
A disadvantage for the players?
This may be a disadvantage for the players because the high competition that prevails on the European and international gaming market is not present in this form: From now on there will be a much smaller offer, which will, therefore, restrict competition between operators. If there is more competition between suppliers, this may mean lower prices and better conditions for customers. Companies have to make greater efforts to attract their customers and therefore often offer them certain advantages such as better bonuses, free spins or a larger range of games. On the other hand, Swiss casinos are no longer under pressure to compete with foreign providers, but the risk remains.
What impact could the law have on Europe?
Switzerland’s extremely strict gambling law could also have an impact on the rest of the European market. Finally, other countries could follow suit. The new decision is the strictest legal situation in Europe and poses a problem for many providers. The European countries that regulate and strictly monitor most gaming operators are Malta with the Malta Gaming Authority (MGA) and Gibraltar with the competent authority. In the UK, too, many online casinos are licensed and audited (by the Gambling Commission). These institutions are therefore responsible for a significant part of the European offering, enabling them to supply customers from all over Europe with games. If more and more countries enforce strict laws, the trend could continue. As discussed earlier, this could be a disadvantage for customers.
The politician Simonetta Sommaruga explained that until 2018 about 250 million Swiss francs were spent annually in Switzerland for unregulated gambling providers based abroad. For this reason, the local gaming authority wants to take stronger action and give preference to Swiss providers. However, it is not yet possible to say exactly whether this will actually be an advantage for the players. Due to the much smaller competition, however, one can assume that bonus conditions and other advantages will be eliminated. Fraudulent behaviour could also increase as a result of the ban, which means for the customers that better precautions should be taken. Reading test scores and customer opinions can help.