Gambling Winnings Tax in Switzerland: What Is Tax-Free and What Is Not

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Is there a gambling winnings tax in Switzerland? Usually not, but the answer depends on where you won. What counts is the operator’s authorisation under the Swiss Gambling Act (Geldspielgesetz, BGS). Depending on that, a win is entirely tax-free, tax-free up to an allowance of just over one million francs, or taxable income from the first franc.

A note before we start: this article is general information and not tax advice. Income tax is assessed by the cantons, and their practice differs in the details. If in doubt, ask your cantonal tax office.

Overview for the 2026 tax year

For direct federal tax, the rules are in Art. 24 lit. i to j of the Federal Act on Direct Federal Tax (DBG). The Tax Harmonisation Act (StHG, Art. 7 para. 4) sets the equivalent framework for the cantons.

Swiss casinos: on site and online

Whatever you win at a roulette table or slot machine inside a licensed Swiss casino is tax-free, however large the amount. The reason is that casinos already pay a casino levy on their gross gaming revenue, most of which goes to the state pension fund (AHV). The one exception concerns people who gamble as a self-employed activity, such as professional poker players.

The online platforms of the same casinos are treated differently. Here each individual win is tax-free up to an allowance. It was CHF 1 million when the law took effect in 2019 and has been adjusted for inflation since: CHF 1,070,400 in 2025 and CHF 1,071,000 for wins from 1 January 2026. Only the part above that is taxable. Someone who wins CHF 1,200,000 online pays tax on CHF 129,000, less the permitted deduction for stakes.

That figure applies to direct federal tax. Cantons set their own allowance; many use about CHF 1 million or adopt the federal amount.

Lottery and sports betting winnings

Lotteries, sports bets and skill games that are run automatically, online or across cantons are called large-scale games in the Act. Swiss Lotto, EuroMillions and the sports betting products of Swisslos and Loterie Romande all belong here. The same allowance of CHF 1,071,000 per win applies. A CHF 400,000 lottery prize is therefore tax-free. On a CHF 5 million jackpot, CHF 3,929,000 is taxable as income.

From the taxable part you may deduct a flat 5% for stakes, capped at a little over CHF 5,000 (Art. 33 para. 4 DBG). For online casino games, the stakes debited from your player account during the tax year are deductible instead, up to a little over CHF 26,000.

Small-scale games and prize draws

Winnings from small-scale games are tax-free provided the event has cantonal authorisation.

Promotional prize draws run by retailers or media companies are a separate category outside the Gambling Act. An exemption limit of CHF 1,100 applies: a prize below it is tax-free, a prize above it is taxable in full.

Foreign and unlicensed operators

For online casinos and bookmakers without Swiss authorisation there is no allowance at all. Every win is fully taxable income and is added to the rest of your income. The same goes for winnings in a casino abroad, whether in Konstanz or Las Vegas.

There is a second problem. Such online operators are not allowed to target players in Switzerland. The two regulators, ESBK and Gespa, publish blocking lists, and Swiss internet providers block the sites. Players there have no Swiss player protection and no enforceable claim to a payout. Our guide Is online casino legal in Switzerland? covers this in detail.

Withholding tax: 35% on the part above the allowance

For large-scale games and online casino games, the Swiss operator deducts 35% withholding tax (Verrechnungssteuer) from the part of a win above the allowance and pays it to the Federal Tax Administration (Art. 6 of the Withholding Tax Act, VStG). Wins up to CHF 1,071,000 are paid out without deduction.

Withholding tax is not an extra tax. If you declare the win in your tax return, it is credited against your income tax or refunded. If you conceal the win, you lose that claim. No withholding tax is levied on wins from foreign operators, yet they remain taxable. The current figures are published by the Federal Tax Administration (page in German).

Do not forget wealth tax

Tax-free only means free of income tax. Whatever is left of the win in your account on 31 December counts as wealth and is subject to cantonal wealth tax, year after year. Many cantons also require tax-free winnings to be listed in the tax return.

Bitcoin and crypto casinos

There is no special rule for winnings in bitcoin or other cryptocurrencies. The operator’s licence matters, not the means of payment. Most crypto casinos are based abroad and hold no Swiss authorisation, so winnings there are fully taxable, converted at the franc rate at the time of the win. The coins themselves count as taxable wealth at year end.

With free demos like the ones in our games overview the question never arises. No money is staked, so there is no monetary win and nothing to tax.

FAQ

Do I have to declare a win from a Swiss casino? No income tax is due. Many cantons still ask for it to be listed in the securities schedule, and the money counts as wealth at year end.

Is the allowance per year or per win? Per individual win. Two lottery prizes of CHF 600,000 each in the same year both stay tax-free for direct federal tax.

Can I deduct losses? No. Gambling losses are not deductible. Only the capped deduction for stakes on taxable winnings is allowed.