Swiss Regulator Penalizes Davos Casino for Allowing Banned Players to Gamble Online

(AsiaGameHub) –   Davos Casino, owned and operated by the Ardent Group, permitted individuals who had been banned due to gambling-related issues and debt problems to access its online gaming platform, casino777, as a result of a technical malfunction. Despite the lack of intent, the casino was still subject to a fine imposed by the Swiss Federal Gaming Board (CFMJ).

Why Did the Glitches Happen?

The problem occurred on two separate occasions in March and October 2023, when a software update led to a major system failure on the casino’s online platform located in the Swiss canton of Graubünden. During the first incident, over 150 players who had previously been banned for reasons related to addiction and financial difficulties were able to log into the site and place bets for several days.

Several months later, in October, another technical breakdown allowed dozens of additional excluded players to regain access to the platform for more than two weeks without triggering any alerts or warnings. Both situations resulted in unlawful revenue generation for the casino.

In both cases, the casino promptly submitted voluntary reports to the CFMJ.

What Was the CFMJ’s Judgment?

According to the CFMJ, these failures constituted a clear violation of Swiss gambling regulations, which mandate that casinos must strictly prevent banned or vulnerable individuals from accessing their services as part of their player protection obligations. The regulator pointed out deficiencies within the casino’s internal operations that led to “repeated and significant breaches” and rejected the claim that the incidents were solely caused by third-party IT service providers.

As a consequence, the CFMJ levied a penalty of CHF 970,000 (approximately $1.24 million). This amount represents nearly 3% of the casino’s gross gaming revenue (GGR) for the applicable year. The decision underscores the Swiss authorities’ commitment to ensuring that gambling operators fulfill their responsibilities regarding monitoring and safeguarding players. It also reaffirms the principle that operators are fully accountable, even when technical issues stem from external vendors.

The CFMJ determined that the fine was appropriate, citing the recurrence of two distinct incidents within a short period and the prolonged duration of the technical malfunctions. The regulator further noted that Casino Davos had already faced sanctions from the CFMJ in December 2020, with that earlier ruling involving a breach related to advertising to excluded players.

In other recent developments in Swiss gambling, Swiss Casinos Zurich contributed to dismantling an international baccarat scam syndicate.