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- Defining types of gambling;
- Regulating the conditions for their operation;
- Establishing measures for responsible gaming;
- Determining the powers of administrative authorities in the field of gambling.
The law covers gambling in stationary casinos as well as online games accessible within the Czech Republic with official permission for their operation.
- Gambling Game – a game involving a player’s monetary bet, the return of which is not guaranteed. In a gambling game, the win or loss is entirely or partially determined by chance (an unforeseen circumstance).
- Participant in a Gambling Game – an individual who has registered to participate in a gambling game conducted within the Czech Republic (CR), or has placed a bet.
- Player – a participant in a gambling game who has placed a bet.
- Bet – a contribution giving the right to participate in a gambling game.
- Operator – the entity that conducts a gambling game.
- Conducting a Gambling Game – performing actions aimed at profit-making: accepting bets and contributions in a gambling game, paying out winnings, and other organizational, financial, and technical actions related to launching the gambling game and ensuring its operation.
- Lottery;
- Betting;
- Totalizator;
- Bingo;
- Technical game;
- Live game;
- Tombola;
- Small-scale tournament.
- Chips at a live game table;
- Credit of funds to a participant’s user account;
- Cash or non-cash transfer to a participant’s account;
- Entry to a user’s account;
- Transfer of a tangible item or a voucher for a tangible item or service to the player;
- Depositing funds for safekeeping (annuity).
Requirements for a Gambling Game Operator
A gambling game can be conducted by the Czech Republic, a legal entity registered in the CR, another European Union country, or a country that is part of the European Economic Area agreement.
- Having an organizational structure with a transparent mechanism for distributing powers;
- Establishing a supervisory board (or other control body);
- Financial stability;
- Maintaining accounting records;
- Having a transparent source of funds and ownership structure (when it is clear who the owner is).
Financial Stability Requirements
The operator’s equity, reduced by the unpaid portion of the issuance course and unpaid contributions not included in the main capital, must amount to at least 50,000,000 Czech crowns. If the current financial result and results from previous years are negative, the operator’s equity must exceed the amount of debts.
Restrictions an Operator Must Consider
- Is not regulated by the law;
- Does not have permission or was not registered in accordance with the law;
- Does not guarantee all players equal conditions of participation and equal chances of winning;
- Contradicts public order;
- Does not provide an opportunity to verify the player’s age before the start of the game;
- Does not allow a participant to stop the game at any time before placing a bet;
- Has a pre-known outcome.
Conditions for Conducting Gambling Games
- Game rules;
- Maximum bet and win amounts;
- Probability of winning;
- Minimum share of winnings;
- Method of conducting the draw or circumstance determining the win;
- Size of the win;
- Method and timing of payouts;
- Payout ratio.
All game information must be provided in the Czech language.
- Tobacco products;
- Smoking accessories;
- Psychoactive substances and preparations;
- Medicinal products;
- Securities;
The operator must pay out the win in the currency in which the bet was accepted. If there is a user account, the payout must be made no later than 30 days from the date it was received.
A player who does not have a user account can present a demand to the operator for the payout of the win within one year. If such a demand was not presented within the specified period, the player loses the right to receive the win.
Reporting by the Gambling Game Operator
The operator is required to keep records for each gambling game and provide information to the Ministry of Finance through remote access. Reporting is not required for tombolas and small-scale tournaments.
- The balance of funds in the account;
- Total net losses since the activation of the account;
- Total net losses for the calendar month;
- Maximum bet amount;
- Maximum win amount;
- Time indicator counting from the moment the player logs into the account;
- Contact details of the operator;
- Contact details of the institution dealing with gambling addiction treatment;
- Warning about the possible consequences of gambling addiction;
- Information about the ban on participation in the game for persons under 18 years of age.
Registry of Individuals Excluded from Participation in Gambling Games
Before allowing players to access machines and other entertainment forms, operators must check whether these individuals are listed in the Registry of Individuals Excluded from Participation in Gambling Games. This is an official list of people who are prohibited from participating in gambling games. The purpose of the Registry is to protect the most vulnerable groups from financial problems and gambling addiction.
An individual can be included in the Registry of Individuals Excluded from Participation in Gambling Games based on:
- Individuals who wish to be excluded from participating in gambling games can submit a statement to be entered into the Registry.
- Are banned from participating in gambling games by a court decision;
- Receive social assistance;
- Are under guardianship (if their guardians submit the appropriate statement);
- Have been declared bankrupt.
- Individuals with significant financial debts or recognized as unable to control their gambling habits can be automatically included in the Registry by the decision of regulatory bodies.
The main regulatory body responsible for maintaining the Registry and ensuring compliance with the established restrictions is the Ministry of Finance of the CR. It controls the correctness and timeliness of the data and ensures the confidentiality of information about individuals included in the Registry.
Permission to Conduct a Gambling Game
The operator is required to obtain permission before starting the activity. Permissions are preliminary and main, issued only based on the operator’s application.
- The impeccable reputation of the operator (no criminal record for crimes);
- No debt for taxes, social contributions, fines, and penalties;
- Providing a deposit by depositing funds into a special account of the Ministry of Finance;
- Confirmation that the operator is not in the process of liquidation and has not been declared bankrupt.
- The operator has preliminary permission.
- Public order is maintained during the gambling game.
- The operator has proper technical equipment for the gambling game.
- An application for main permission may be rejected if, within the last three years, one of the operator’s main permissions for this type of game was revoked.
Taxes on Gambling Games
A tax on the gross revenue from gambling games is levied on the total amount received by the operator from player bets, minus paid winnings. The tax rate for all gambling games is set at 23%, except for lotteries and technical games, for which it is 35%.
A tax is also levied on a participant’s win if the amount exceeds 1,000,000 Czech crowns. The tax rate is 15%.
Supervision of Compliance with the Law
The supervision of compliance with the obligations established by the law is carried out by the Ministry of Finance and the Customs Service of the CR. A fine can be imposed on the operator for violations, ranging from 100,000 to 50,000,000 Czech crowns.
