It looks like Czech gambling taxes are about to increase. This country’s Ministry of Finance has officially announced plans to increase tax rates on gambling operators. Will this have much of an effect on gaming operations inside the Czech Republic?
Now is a great time to look into the online gambling industry in this country. We’ll be diving into the specifics of these new tax laws, and talking about what impact it may have on companies and individual bettors.
For many years, the Czech Republic did not take any concrete steps to regulate its online gambling market. In 2017, lawmakers here officially implemented a new set of laws to “crackdown” on illegal online gaming companies. Nearly every internet gaming site left this market as a result.
Some companies are returning here. The tax rates for these companies are some of the highest in Europe. Sports betting and slot revenue is taxed at 23%.
The changes to these laws appear to be paying off. Czech gambling revenue is at an all-time high right now. Interestingly, tax rates in the country are about to increase even more.
The Czech Ministry of Finance has officially released the details of a new gambling tax plan. Taxes are certainly going up, yet these will be affecting certain gaming operators more than others. Lotteries, bingo games, and “live dealer games,” are being impacted the most.
As we mentioned previously, tax rates on most traditional forms of gambling operators are set at 23%. The government is now proposing an increase of 2%, bringing the total tax rate to 25%, for sports betting and pari-mutuel betting operators. A 2% tax jump isn’t necessarily the end of the world for companies.
The Finance Ministry wants a new 30% tax rate on all forms of lottery, bingo and “live dealer” gambling operators. These plans almost came into effect back in 2017. Complaints from gambling companies in the country forced the government to reconsider.
It’s looking more likely that these new rates will be implemented. Let’s take a quick look at the future of online gambling in this country.
It’s a strange time for the Czech online gambling industry. Only a few companies are operating here legally, and the government is actively working to stop all foreign companies from accepting Czech bettors without a license. The new Czech gambling taxes may make things worse.
It’s possible that the legal companies operating here may leave the market. An increase in taxes may also discourage some of the top online gambling sites in Europe from applying for a license here in the future. It’s important to note that the tax increase plan has not been officially approved.
The Ministry of Finance will need the green light from the government. If these plans are approved, the tax increase could be put into effect by early 2020. Jan Bartošek, a member of the Chamber of Deputies for the Christian and Democratic Union party, has stated that a major tax increase could “lead to an increase in illegal gambling.”
The Czech government is also talking about the removal of certain licensing procedures. Laws for onling gambling operators forcing members to register in-person may finally be curbed.
Do you think the new Czech gambling taxes will hurt the online gambling industry here? Will legal gaming companies here choose the leave the market? Let us know in the comment section below!
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