Overview
Czech Republic Online Gaming Overview
Regulated
The main law that regulates gambling in the Czech Republic is Act No. 186/2016 Coll., on Gambling (“Gambling Act”). It completely overhauled the gambling regulatory environment in the Czech Republic by allowing most game types to be operated online and opening the Czech market to operators from other EUR/EEA member states.
The Gambling Act defines “gambling” as a game of chance, betting, or a lottery in which a participant wagers a bet, while no return on such bet is guaranteed, and the win or loss is entirely or partly subject to chance or unknown circumstance.
It specifically regulates and recognises only the following types of gambling:
- Lottery
- Odds betting
- Totalisator game
- Bingo
- Technical game
- Live game
- Raffle
- Small size tournament
Each of the above gambling types may be operated in land-based as well as in online form. The two exceptions are Raffle and a Small size tournament, which may only be operated in land-based form.
Market Size
Combined GGR of legal gambling operators in the Czech Republic in 2022 was CZK 53.8 billion (app. EUR 2.2 billion). The highest share of GGR (31% of total GGR) derived from land-based ‘technical games’ (i.e. slot machines) followed by online ‘technical games’ (i.e. slot machines) (24.4% of total GGR), online betting (20.5% of total GGR) and land-based lottery (12.7% of total revenues).
Competitive Landscape
As of 1 May 2024, there are 9 Online Odds betting licences issued, 26 Online Technical game operators, 7 Online Live game operators and 5 Online numerical Lottery licences issued. The list of licensed Online as well as Land-based operators is published online.
Localisation
Payments via transfer from bank account, payment cards and other payment methods are permitted. Advertising of licensed games is permitted via any communication channel as long as they do not target minors and do not raise an impression that proceeds from gambling are/can be a regular source of income.
Top 5 Key Attractions and Challenges
Attractions
- Very low licence fee
- Very limited advertising restrictions
- Few foreign operators present on the market
Challenges
- Difficult market entry
- High “own equity” requirement and surety/bank guarantee required
- Onerous reporting requirements
- High gambling taxes (two tax rates apply – 30% and 35% depending on the type of games offered)
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Licensing & Regulation
Czech Republic Online Gaming Licensing & Regulation
Licence Triggers
A licence is required for any gambling game accessible in the territory of the Czech Republic.
Array/Type of licences needed
Online Gambling operators are required to obtain an ‘Initial licence’ and a ‘Basic licence’ from the Ministry to operate any of the permitted types of gambling, with the exception of a raffle and a small size...
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Enforcement
Czech Republic Online Gaming Enforcement
Regulating bodies
Ministry of Finance, General Directorate of Customs, Customs Office, Municipalities and for AML also the Financial Analytical Office.
Supervision by Regulator
Supervision is conducted via ongoing monitoring by the regulators and third party complains addressed to the regulator usually by players or operators. There is also a rigorous reporting regime in place established by Ministry’s Decree...
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Marketing
Czech Republic Online Gaming Marketing
Promotion and advertising of gambling are regulated by Act No. 40/1995 Coll. on the regulation of advertising (“Act on Advertising”). The Act on Advertising states that it is prohibited to advertise a gambling game operated without a basic licence issued by the Ministry.
The Act on Advertising also states that advertising of a licensed gambling game:
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Fees
Czech Republic Online Gaming Fees
Application fees
The basic licence application fee is CZK 5,000. For each type of gambling, a separate basic licence is needed. Therefore, if for example, an operator wants to offer an odds betting, a technical game, and a live game, it will be required to apply for three separate basic licences and pay the licence application fee three times.
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Taxes
Czech Republic Online Gaming Taxes
Licence Taxes
Under Act No. 187/2016 Coll., on Gambling Tax (“Gambling Tax Act”), gambling operators are subject to a special gambling tax. The gambling tax is based on gross gaming revenues (GGR) calculated as the difference between the amount wagered (and not returned to the players) and the winnings paid out to the players.
Gambling tax returns have to...
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Future Outlook
Czech Republic Online Gaming Future Outlook
No imminent material changes are in the legislative process.
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Legal Expert
WH Partners
WH Partners is a Malta-based leading law firm with a business focus and expertise in gaming & gambling, fintech, technology, tax, M&A and corporate finance. The firm also advises clients on intellectual property, data protection, capital markets, commercial contracts, real estate, employment law, trusts and foundations and citizenship, residence & immigration. Both the firms and the lawyers are highly ranked by the foremost legal directories, including Chambers & Partners, The Legal 500, IFLR 1000, and The World Tax. WH Partners is the exclusive member for Malta of Ally Law. More information is available at www.whpartners.eu.
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