Online Gambling Operators Disregard New Czech Laws

Published Wednesday, January 25, 2017 -
Online Gambling Operators Disregard New Czech Laws

The Czech Republic is known for a liberal and yet at times conservative approach to change. The older demographic are conservative, they were influenced by communist influence before 1968 but the younger set are open to new things, they are glad that they have a choice. The Czech people don't solve problems right away, they sit down and talk about it or they let time solve issues.

Such is the case for online gambling in the Czech Republic where there were changes approved last June 2016 by Czech President Miloš Zeman for a number of new laws regarding gambling and the taxation of gaming action in the country. The legislation created a new licensed online gambling framework that was intended to open up the domestic gambling market to international firms, as well as allow regulators to begin blocking unlicensed gambling web sites.

The beginning of 2017 saw gambling operators required to go through the licensing processes which included operators having an official seat in an EU or European Economic Area country and holding at least €2 million in equity. The new tax rate of 23% on gross gaming revenue for sports betting and lotteries, as well as 35% for RNG casino games, on top of a standard 19% corporate tax rate was also imposed. Now almost one month after the new legislation some online gambling operators remain active in the jurisdiction despite facing prosecution from the national regulator and authorities.

The Director of the Czech section of Transparency International, a non-governmental organisation, David Ondracka, commented that no action has been taken against the 25 unlicensed online gambling operators. In typical Czech fashion the Czech Finance Ministry has not been fast in reacting to the information provided by Transparency International and its concerns  The organization said it will carry out further investigations into the issues this April to see if these transgressions have been addressed.


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