Switzerland Gambling Tax: The CHF 1 Million Threshold (2026)

How Switzerland Taxes Gambling Winnings

Switzerland offers one of Europe's most generous gambling tax frameworks, with a high threshold before any tax applies.

The headline: Gambling winnings up to CHF 1 million are tax-free from licensed Swiss operators.

The CHF 1 Million Threshold

Switzerland's gambling tax rules changed significantly in 2019:

For licensed Swiss operators:

• First CHF 1 million: Completely tax-free
• Above CHF 1 million: Taxed as income
• Per person, per year
• Applies to total annual winnings

This means virtually all recreational gamblers pay zero tax on their winnings.

For foreign (non-Swiss) operators:

• Different rules apply (see below)
• Full winnings may be taxable
• No CHF 1 million exemption

Licensed Swiss Operators

Switzerland has a regulated gambling market overseen by ESBK (Eidgenössische Spielbankenkommission) and Gespa (Interkantonale Geldspielaufsicht):

Online sports betting (Gespa-licensed):

• Swisslos (German-speaking cantons)
• Loterie Romande (French-speaking cantons)
• bet365 (partnership with Swiss operator)
• Various cantonal offerings

Online casinos (ESBK-licensed):

• Swiss casinos can offer online gambling
• Limited number of licenses
• jackpots.ch, casino777.ch, etc.

Important: Since 2019, foreign online gambling sites are blocked in Switzerland. VPN use to access them is technically illegal.

Foreign Operator Winnings

If you gamble with operators not licensed in Switzerland:

Tax treatment:

• Fully taxable as income
• No CHF 1 million exemption
• Progressive cantonal rates apply

Rates vary by canton:

• Zürich: Up to 40%
• Geneva: Up to 44%
• Zug: Up to 22%
• Average across cantons: 25-35%

Practical reality:

• Foreign sites are IP-blocked
• Using VPNs is not recommended
• Enforcement focuses on access blocking rather than individual taxation

Cantonal Tax Variations

Switzerland's federal system means taxes vary by canton:

Low-tax cantons:

• Zug, Schwyz, Nidwalden, Obwalden
• Lower overall income tax rates

Higher-tax cantons:

• Geneva, Vaud, Basel-Stadt
• Higher marginal rates

The CHF 1 million exemption is federal law, but anything above is taxed at your cantonal income rate.

Professional Gambling

Swiss law distinguishes recreational from professional gambling:

Professional classification:

• Gambling is primary income source
• Systematic, regular activity
• Specialized methods employed
• Significant time invested

Tax treatment for professionals:

• All winnings taxed as self-employment income
• No CHF 1 million exemption
• Can deduct business expenses
• Social contributions apply (AHV/IV/EO)

In practice: Professional gambling classification is rare in Switzerland.

What Counts as "Winnings"?

The CHF 1 million threshold applies to:

Net winnings calculation:

• Total payouts minus total stakes
• Across all licensed Swiss gambling
• Calculated per calendar year

Example:

• Total stakes: CHF 50,000
• Total payouts: CHF 80,000
• Net winnings: CHF 30,000
• Tax: CHF 0 (under threshold)

Not included in threshold:

• Foreign gambling winnings (separate rules)
• Expenses like travel to casinos

Sports Betting in Switzerland

Swisslos and Loterie Romande:

• State-run organizations
• Limited online sports betting
• Lower odds than international markets
• Winnings tax-free under CHF 1 million

Licensed partners:

• Some international operators partner with Swiss entities
• These partnerships allow legal operation
• Same tax treatment as state operators

Market limitations:

• Fewer markets than international sites
• Less competitive odds
• Limited live betting options

Value Betting Considerations

For Swiss value bettors:

Challenges:

• Limited operator choice
• Less competitive odds
• Blocked access to many sites

Advantages:

• Tax-free up to CHF 1 million
• No withholding at source
• Clear legal framework

Practical impact:

• Harder to find value with limited operators
• Tax advantage offset by poor odds
• Arbitrage difficult with few books

Record-Keeping Requirements

Even with generous exemptions:

Keep records of:

• All gambling transactions
• Operator account statements
• Bank records of deposits/withdrawals
• Proof of operator licensing

Why:

• Prove winnings are under CHF 1 million
• Document source of funds
• Evidence for cantonal tax authority

Swiss vs. Other Countries

Switzerland's threshold is generous compared to most, though the UK and Austria offer complete exemption.

Key Takeaways

1. First CHF 1 million tax-free from licensed Swiss operators
2. Above CHF 1 million taxed at cantonal income rates
3. Foreign operator winnings are fully taxable (no exemption)
4. Limited operator choice due to market restrictions
5. Professional gamblers lose the exemption
6. Keep records to prove winnings are under threshold

This guide is for informational purposes. For personal tax advice, consult a Swiss tax professional (Steuerberater/conseiller fiscal/consulente fiscale).