The Law on Gambling entered into force in 2016. So what is the state of the Czech gambling industry now, and what are its features - read our material.
How the Gambling Business Is Regulated in the Czech Republic
Legalizing gambling in the Czech Republic requires a license to conduct gambling business. Since the Czech Republic is part of the EU, this license can be obtained not only by a registered local company. But also companies registered in other EU countries. This opened new opportunities for foreign investors to obtain a European gambling business license.
The Law on Gambling in the Czech Republic and What It Means
Currently, the list of licensed gambling entertainment in the Czech Republic includes:
- Sports betting and totalizers.
- Internet casino.
- Slot machines.
- Card games (e.g., poker).
- Lotteries and gaming terminals.
And in fact, each of the listed directions requires licensing since all these entertainments fall under the category of the law (Law 186/2016 Sb. "On gambling" (Zákon č. 186/2016 Sb., O hazardních hrách dated May 26, 2016. )
The law itself formulates the concept of "gambling" as follows:
These are gambling games, bets, and lotteries, in which the player makes a bet, but no refund is expected. Winning and losing depend entirely and partly on random and unknown circumstances.
each type of gambling has a separate type of basic license.
Who Regulates Gambling in the Czech Republic?
According to the Law, three main bodies regulate business activities in the gaming sector:
- Ministry of Finance of the Czech Republic. Issuing and obtaining a permit depends on him, particularly for online casinos.
- Municipality. Issuing a permit for the use of premises for gambling business.
- Customs. Maintains order in the conduct of the gambling business and prevents crimes that may be related to land-based casinos.
At the same time, the last two bodies cooperate closely and provide the Ministry of Finance with data on the work of districts.
Rules of Taxation and Fines
Everyone who plans to conduct business activities related to gambling must pay a certain tax, depending on the type of gambling activity.
Thus, the share of the partial tax base of the lottery and technical games is:
- 35% — for lottery and technical games;
- 23% — for totalizator, bingo, bets in foreign currency, etc.
At the same time, the legislation of the Czech Republic closely monitors the implementation of rules and laws.
Therefore, in case of violating these norms, the business owner will have to pay a considerable fine, reaching up to 1 million crowns for individuals and up to 50,000,000 Czech crowns for legal entities.
How Do You Get a Gambling License in the Czech Republic?
To obtain a license to conduct a gambling business, you need the following:
- Register a legal entity in the Czech Republic.
- Open a bank account in the Czech Republic.
- Confirm that your funds are completely legal.
- To have the status "without debts."
- Prove no criminal record.
- Have a charter capital of at least €2 million.
- Have a complete and clear structure of the organization.
- Apply for a basic license to the Ministry of Finance.
- Provide surety for each type of gambling and transfer funds to a special account.
And, of course, gambling should not violate public order.
The Online Gambling Sector in the Czech Republic
As for online gambling, the industry is subject to much stricter requirements that even the betting giant William Hill has left the Czech market.
The most serious difficulty lies in obtaining a license, so most local operators work here, for example:
- Sazka Group.
- Synot Group.
- King’s Casino Rozvadov.
One of the main requirements is the presence of an interface in the Czech language.
In addition, opening an online casino and obtaining a license for it requires the preparation of certain documents, namely:
- List of shareholders, directors, and beneficiaries.
- Confirmation of providing surety to the Ministry of Finance.
- Confirmation of the absence of debts and criminal records.
- Game plan.
- Document the location of the game server.
- A document confirming the serviceability and approbation of the devices.
And also, a statement must be submitted that indicates which gambling games the online casino offers.
The Czech Republic is one of the most profitable and environmentally friendly countries for the gaming business, and there are many reasons for this. First, this country's successful and stable economy continues to develop. Secondly, the documents necessary for gambling can be drawn up in about a month, and the conditions for conducting such a business are quite transparent and clear.
That is why the gambling sector not only flourishes successfully in this country but becomes another source of income for the state and jobs for the population.
LCWork helps professionals and employers find each other. We have a strong database of vacancies and resumes, including offers from the Czech gambling industry.