On 1 January 2024, an amendment to the Gambling Act and the Act on Gambling Tax came into force. The amendment is the most extensive since the regulation came into effect in 2017, introducing a number of changes. These relate mainly to the scope of regulation, catalogue of licensable games, operator licensing regime, enforcement measures and taxation.

Online gambling may now be open to foreign players

With effect from 2017, the current Gambling Act opened the gambling industry to legal entities incorporated not only in the Czech Republic but also in EU/EEA countries. Entities from all these countries can apply for a license as an operator.

The current amendment goes even further and enables licensed online gambling operators to offer their services not only to Czech players but also to foreign players (subject to applicable local regulations). This was previously not possible as online gambling was limited to players resident in the Czech Republic.

Live dealer games

The Czech gambling regulation is based on a closed catalogue – i.e. only types of games explicitly listed in the Gambling Act are licensable.

Due to demand from operators, this catalogue now includes an additional type of game – live dealer games (also known as live casino).

A live dealer game is operated as an online game in which live video is streamed from a “studio” and players can participate online.

Simplified licensing procedure

The licensing process has been revamped to become faster and more effective.

Previously, operators needed to apply for a “basic license” to operate each of the listed types of games separately. 

This process is now divided into two separate licensing procedures – an “initial license” and a “basic license for a specific type of game.” Operators will now not need to repeatedly prove and document a number of general conditions and requirements when applying for a license to operate an additional type of game. The maximum duration for which the initial license can be granted is not limited by law. 

The administrative fee for the basic license application remains at CZK5,000 (approx. EUR200).

New self-restricting measure (panic button)

The amendment changes the self-restricting measures, introducing the requirement for operators to implement a “panic button” available for players. The use of the panic button will prevent the player from placing any further bets for the following 48 hours and trigger obligations of the operator to offer to put the player on a list of excluded persons.

Broader definition of (illegal) online gambling

The definition of online gambling is now significantly wider. Previously, online gambling was only considered to be subject to the Czech Gambling Act if the game was (at least partially) aimed at players resident in the Czech Republic.

The current amendment extends the definition of online gambling to all situations where the game is simply available in the territory of the Czech Republic.

This potentially enables the regulator to investigate and pursue a much wider array of online services as illegal gambling operations and impose sanctions on them.

Blocking of apps as a new measure to combat illegal gambling

In addition to blocking blacklisted websites and payment accounts, the amendment introduces a completely new instrument – blocking blacklisted apps.

The obligation is imposed on operators of websites or “electronic interfaces” who are now under obligation to monitor the published blacklist and ensure they don’t make such apps available.

Increased gambling tax

The amendment also brings changes in taxation. The second gambling tax rate for live games, bingo, odds betting (betting on the outcome, live betting), totalisator games (horse racing), raffles and small-scale tournaments (poker) has increased from 23% to 30% of gross gaming revenue (GGR). The basic rate of 35 % GGR for lotteries and technical games remains at the current level.

As regards taxes payable by players, the limit for the exemption of gambling income is reduced from the current CZK1 million to CZK50,000. This limit will apply depending on whether the winnings are subject to withholding tax or included in the partial tax base.