The Czech Republic is a step closer to offering international operators online gambling licenses, after the senate approved a new gambling law.
Czech President MiloÅ¡ Zeman has 30 days to approve the bill, which was voted in at the end of last month with 42 votes in favour, 23 abstentions and no ‘nay’ votes in the senate.
Implementation expected in 2017
The bill’s provisions could take effect as early as January 2017, if President Zeman signs off. The new law will drop the long-standing prohibition on international operators being granted Czech licenses, which has so far left the nation with only 5 licensed gambling operators, including Fortuna Operating Group, which offers fixed-offs betting in the Czech Republic, Slovakia and Poland.
Tough tax laws
Interested operators will have to face some tough tax rules if they opt to apply for a Czech license. Earlier this year, the Lower House of the Czech parliament voted to increase the taxes gambling companies are expected to pay, starting from next year. Tax on slot machines is set to increase from 28% to 35%, while sports betting or lotteries will be taxed at 23%. These taxes are in addition to the 19% corporate tax that licensed operators must pay.
In 2014, Czech players reportedly spent some $5.6 billion on gambling, more than half of which was spent on mechanical and video slots machines. That’s about 2.5% of the Czech Republic’s GDP.
Legislators have implemented a number of strategies within the new legislation, in an effort to protect new licensees from unwanted competition. These include empowering the Ministry of Finance with the capacity to block unauthorized gambling domains and clamp down on unlawful marketing, as well as banning payments to and from unauthorized operators.
Protecting players
A number of other provisions will be implemented, aimed at restricting access to online gambling for certain players. These include a national exclusion database that allows individuals to block themselves from accessing sites, while also preventing bankrupt individuals or those receiving financial assistance from the state from using such sites.