Heated 11 million euro dispute over Swiss Casino Pfäffikon

Large construction projects cost a lot of money and are often associated with considerable difficulties. Almost every day, there are reports in the regional and national press about blocked approvals, exploding costs or failed projects. However, disputes such as the one currently surrounding the renowned Casino Pfäffikon in the municipality of Freienbach in the Swiss canton of Schwyz do not occur every day. It involves 11 million Swiss francs and more.

What happened? In order to paint a complete picture of the current controversy, we need to go back a little: in 2021, Casino Pfäffikon announced that it wanted to move its operations to another building. However, the location was to remain unchanged. The press release stated verbatim: "In collaboration with Sager und Partner Architektur und Immobilien GmbH from Freienbach, a new building with a casino is being built in the Halten district on Schindellegistrasse - next to the existing business center with hotel, restaurant and wellness center."

Thomas Cavelti, Director of Casino Pfäffikon, emphasized the advantages of the move to a new building: "The new location offers everything a modern casino needs. With the new location, we will be able to meet all requirements for the next 20 years."

The plan was to open the new premises to the first visitors in 2023. Until then, the casino would remain open at its familiar location, the Seedamm Plaza on Lake Zurich. Incidentally, we recently reported on an impending ceiling collapse at the Grand Casino Baden.

Marc Baumann, CEO of the operating company Swiss Casinos, looked forward to the future of his establishment and thanked both the previous location and the supporters or pioneers of the project: "We were always very satisfied with the previous location and the cooperation with Seedamm Plaza - we would like to thank everyone for that. Nevertheless, we had to seize the opportunity to have our own casino building. Now we are looking ahead and would like to thank the mayor of Freienbach for the discussion and the cantonal council of the canton of Schwyz, to whom we were able to present our project. We are looking forward to a big opening party to which the entire population of the region will be invited."

However, the party didn't happen in 2023 - and it hardly looks like it will take place at all. The reason: objections to the construction project, in particular to unspecified structural adjustments, led to considerable delays. The move was initially postponed until 2025. However, those responsible at Swiss Casinos then decided in July 2024 to put the 34 million project on hold altogether. Building owner Marcel Sager from Sager und Partner Architektur und Immobilien GmbH did not like this at all. At the end of 2024, he demanded a whopping CHF 11 million from Swiss Casinos for the shell of the building and also filed a supervisory complaint against the concession.

Lease agreement with Seedamm Plaza extended by 20 years - no word on the whereabouts of the new building

The decision, which Casino Pfäffikon announced in a press release on July 12, 2024, must have come as a bitter pill for Sager und Partner Architektur und Immobilien GmbH.

It reads: "On July 10, 2024, Swiss Casino Pfäffikon and Seedamm Plaza extended the existing rental agreement for a further 20 years. This means that Seedamm Plaza and Swiss Casino Pfäffikon will remain an attractive location where casino, hotel, gastronomy, congresses and wellness are united under one roof."

• The reason given was the apparently still "existing objections to the previously planned future casino location in the Halten district". The new business premises would therefore be "abandoned", as it literally says. No further explanations were given as to what is now to happen to the new building, which has not yet been completed but is well advanced.
• Those responsible seem to see this turn of events as a matter of course and quite normal - not a word is said about the building remaining in Halten or about further cooperation with the client, i.e. Sager und Partner.

"The contract extension is a strong signal for the stability and attractiveness of our casino. We are delighted to be able to continue offering our guests a comprehensive range of leisure and gaming activities as well as a location for entertainment and relaxation," says Marcel Tobler, CEO of Swiss Casinos.

Thomas Cavelti, Director of Swiss Casinos Pfäffikon, adds: "With this contract extension, we can secure and further develop our plans for the future. Our guests can look forward to many more years of first-class entertainment and unforgettable experiences."

Another interesting fact about Switzerland: the Swiss have more freedom to gamble than Germans, yet problem gambling behavior is similar.

Bill of 11 million francs should not even include everything

A complete U-turn by Casino Pfäffikon was supposed to put an end to the anger surrounding the construction blockade. However, this has created yet another conflict. Marcel Sager from Sager und Partner Architektur und Immobilien GmbH in Bäch did not want to be fobbed off that easily. Now the controversy surrounding the abandoned building in Halten is really boiling over.

"Excuse me? First we build a casino and then I read in the newspaper that they don't want to move in?": This or something similar could have been Sager's reaction when he heard about the abrupt change of direction.

• For him, the matter is clear: there is a watertight contract. And now he wants it to be honored - or at least that there is proper financial compensation. The sum invoiced amounts to 11 million francs.
• However, this is far from being all inclusive. The big problem is that the building was tailor-made for a casino. You can imagine it like a key that only fits into a single lock. It would not be possible to change its use.

And if no one is going to move in there, then they could take the wheel themselves and go into full attack mode: Why not simply apply for a license and go into competition with Casino Pfäffikon? Although the location near the highway is not as beautiful as the one on Lake Zurich, it has a lot to offer in terms of infrastructure. The only alternative would be demolition.

Source of the image: Screenshot from https://www.swisscasinos.ch/services/presse/swiss-casino-pfaeffikon-bleibt-im-seedamm-plaza

Central text sources: https://www.swisscasinos.ch/services/presse/casino-pfaeffikon-zieht-um-bleibt-aber-dem-standort-treu, https://www.swisscasinos.ch/services/presse/swiss-casino-pfaeffikon-bleibt-im-seedamm-plaza