Higher Taxes On Gambling Proposed In Czech Republic

Published Tuesday, April 09, 2019 - Online-Casinos.com
Higher Taxes On Gambling Proposed In Czech Republic
The gambling industry has been a consistent source of revenue for governments all over the planet utilizing funds from taxes and licenses to pay for infrastructure and social programs. The advent of online betting has proved lucrative for jurisdictions that have embraced regulated internet betting. The increased tax imposed on gambling in some areas has resulted in gambling operators not even trying to apply for a license. The Czech Republic has been slow taking off as a regulated open gambling market because of a mixture of high taxes, bureaucracy and lengthy administrative processes, such as the physical verification of players’ identities required of those opening up online accounts. Tax levels are high in the Czech Republic where the same tax rates apply to online operators as terrestrial operations. Now only after a few years of offering a regulated gambling environment the Czech Republic’s Ministry of Finance has announced plans to increase gambling taxes with bingo, live games and lotteries set to be hard hit. Gaming machines are taxed at 35% of gross gaming revenue (GGR), and the rest of all gambling taxes are currently set at 23% of GGR. Should the tax hike be approved taxes will go up to 30% of GGR for lotteries, live games and bingo operators. Other forms of gambling, such as fixed-odds betting, will have a small increase from 23% to 25% of GGR, while the 35% rate for gaming machines remains the same. The Ministry stated, “The proposed amendment to the gambling tax law divides the rate of gambling tax into three levels, according to the harmfulness of individual gambling in the same way as the government's draft Gambling Tax Act of 2015.” The Ministry is maintaining that the only aim is to “increase the public budget.” Plans for the increased tax rate have drawn criticism from a number of politicians who have said an increase in tax rates could “lead to an increase in illegal gambling.”

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