Home Digest 4H Agency Czech Republic Finalizes Streamlined Revisions to Gambling Act

Czech Republic Finalizes Streamlined Revisions to Gambling Act

In 2023, the Chamber of Deputies of the Czech Republic approved amendments to the Czech Gambling Act and the accompanying Act on Gambling Tax.

The amendments marked the first revision of the Czech Gambling Act since its inception in 2017. Significant changes aim to streamline licensing procedures for EU-based foreign businesses providing services for Czech gambling.

Ivan Kurochkin, a partner at 4H Agency, observes a year of profound changes for Czech gambling, with a total of 65 new rules overhauling licensing requirements, promoting safer gambling, strengthening enforcement measures, and adjusting taxation.

2024 a new chapter for Czech Gambling

Before 2024, Czech gambling market was well regulated and European-like. All verticals were (and are still) licensed, starting with land-based licenses (casinos, betting, even lottery) and ending with online licenses of the same verticals. Total GGR in 2023 amounted to ~US$ 2,5 billion, which shows the market strength and popularity among locals and tourists. 

In March 2023, big amendments to gambling laws were approved, effective from January 1, 2024. These changes were part of a large legislative reform aimed at enhancing government finances, which updated 65 laws. This marked the beginning of an even greater settlement and increase in the gambling market of Czech Republic.

Key changes in the Gambling Law from 2023 to 2024 include:

  • Online Gambling for Foreign Players

Licensed online gambling operators can now offer services to foreign players, subject to the laws in their respective countries. Previously, access was limited to players residing in the Czech Republic.

  • Regulation of Live Dealer Games

Live dealer games, where players participate online via live-streamed video from a studio, are now regulated. These studios must be located in Czech land-based casinos.

  • Simplified Licensing Process

Whereas previously operators were required to obtain several initial licenses for each basic license (which varied depending on the vertical) with limited term, now only a single, indefinite-term initial license, which applies across various basic licenses is required.

  • Panic Button for Player Self-Restriction

Operators now shall implement a “panic button” allowing players to stop betting for 48 hours. It also prompts operators to offer self-exclusion options to affected players.

  • Extended Definition of Online Gambling

The definition of online gambling now covers any game accessible within Czech territory.

  • Blocking of Illegal Apps

In addition to blocking blacklisted websites and accounts, authorities can now block blacklisted gambling apps.

  • Increased Gambling Tax

Tax rates for all forms of gambling except for lotteries and casinos increased from 23% to 30% of gross gaming revenue (GGR) (35% for both online and land-based casinos stayed the same).

The tax exemption limit for player winnings has dropped from ~US$ 43,000 to ~US$ 2,150.

Alongside this, several new Decrees were also effective in January 2024 to support the implementation of new legislation, namely:

  • Decree No. 468/2023 Coll. – Technical Parameters for Gambling Devices

Specifies requirements for terminal equipment identification and registration marks.

  • Decree No. 466/2023 Coll. – Conditions for Operating Gambling Games

Key points include a ban on certain high-risk bonuses, document retention for three years, and detailed notification for gambling events.

  • Decree No. 467/2023 Coll. – Reporting Requirements for Gambling

Details content, transmission deadlines, and technical requirements for live games and other gambling types. Some technical requirements from the previous ordinance will remain temporarily.

Later, in April 2024, the new Anti-Money Laundering (AML) Law was published, bringing more control and oversight to the industry by imposing stricter requirements on operators starting May 2024:

  • Customer Due Diligence (CDD): Operators may skip CDD measures if it would interfere with a criminal investigation.
  • AML Supervision: The Financial Analytical Office and customs authorities will oversee online lotteries and bingo for AML compliance.
  • Increased Penalties: Stricter fines are applied for AML violations.

Finally, all throughout 2024, additional guidance to the new regulatory system was issued to support the industry:

  • Politically Exposed Persons (PEPs) (July): Guidance re PePs, instructions for operators to inform players about PEP requirements and procedures to verify PEPs.
  • Panic Buttons (September): Guidance on the procedure of implementation and maintaining the panic buttons, for them to be visible and accessible, both in physical establishments and online.
  • Customer Due Diligence (CDD) (September): Guidance on CDD practices for verifying player identity and preventing illegal activities.

4H: Streamline needed for Better Balanced Czech Market 

The 2024 regulatory changes in Czech gambling law represent a significant evolution toward a more responsible and transparent market. 

While these measures reinforce consumer protections, promote industry accountability, and set new standards for operational clarity, they introduce additional obligations for operators that may affect the appeal of the Czech market for some. 

Increased tax rates, new compliance requirements, and intensified oversight on online operations bring enhanced stability, yet these obligations could also drive certain operators to consider offshore options, where such regulatory pressures are lower. 

Despite this, the Czech Republic’s commitment to a fair and well-regulated gambling environment underscores its position as one of Europe’s most exemplary markets – offering a stable and secure landscape for sustainable industry growth.

Don’t forget to subscribe to our Telegram channel!

Exit mobile version