Swiss Regulator Fines Davos Casino for Letting Excluded Players Play Online

Davos Casino, owned and operated by the Ardent Group, allowed banned players to access the casino777 website, its online gaming platform, due to a technical glitch. However, the fact that it was not intentional still landed the casino a fine by the Swiss Federal Gaming Board (CFMJ).

Why Did the Glitches Happen?

The issue happened on two occasions in March and October of 2023, when a software update caused a serious malfunction on the casino’s online gaming platform in the Swiss canton of Graubünden. The first incident allowed more than 150 players who had been banned because of addiction and debt issues to access the site and place bets over several days. 

However, a few months later, in October, another technical failure enabled dozens of additional banned players to regain access to the platform for more than two weeks and gamble without triggering any warnings or alerts. Both of these instances unlawfully generated revenue for the casino.

In both instances, the casino made a prompt voluntary disclosure to the CFMJ. 

What Was the CFMJ’s Judgment?

According to the CFMJ, these failures amounted to a direct breach of Swiss gambling laws, which require casinos, as part of their addiction prevention obligations, to rigorously prevent access by vulnerable individuals. The regulator highlighted internal organizational shortcomings that resulted in “repeated and significant breaches” and dismissed the casino’s claim that the incidents were caused by external IT service providers.

As a result, the CFMJ imposed a fine of CHF 970,000 (about $1.24 million). The fine corresponds to nearly 3% of the casino’s gross gaming revenue (GGR) for the relevant year. The decision reflects the determination of Swiss authorities to ensure that gambling operators meet their responsibilities regarding oversight and player protection. It also reinforces the principle that operators remain fully accountable, even when technical failures originate from third-party providers.

The CFMJ found the amount of the fine to be justified, citing the occurrence of two separate incidents within a relatively short time frame. The regulator also noted that the technical malfunctions had continued for several days. Furthermore, Casino Davos had already been sanctioned by the CFMJ in December 2020. According to the ruling, the earlier case involved a violation of the prohibition on advertising to excluded players.

In other recent gambling news from Switzerland, Swiss Casinos Zurich helped take down an international gang of baccarat scammers.