Categories: Gambling LawsIndustry

Czech Gambling Taxes Are Increasing

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.

Recent Changes to Gambling Laws in the Czech Republic

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.

Czech Gambling Taxes Are Going up Once Again

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.

Future of Online Gambling in the Czech Republic

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!

Share
Kevin Oldroyd

A longtime sports and gambling enthusiast, Kevin looks to present up-to-date and reliable information for readers. If he’s not writing, he’s probably watching MMA or playing blackjack.

Recent Posts

  • Gambling Laws
  • Industry

Small Bookies in Ireland May Receive a Tax Break

Lawmakers in Ireland have been taking a close look at the gambling industry. Reports indicate that gambling addiction here is… Read More

July 18, 2019 11:53 pm
  • Industry
  • UK

UK Gambling Crackdown Affects Betting Shops

For the past seven months, lawmakers in the United Kingdom have been increasing regulations on the land-based and online gambling… Read More

July 17, 2019 4:18 am
  • Gambling Laws
  • Industry

No Special Session for Maine, Sports Betting Bill on Hold Until 2020

On June 19th of this year, Maine’s proposed sports betting bill passed both legislative chambers on the last day of… Read More

July 15, 2019 3:00 pm
  • Gambling Laws
  • Industry

DC Takes a Closer Look at Intralot Betting Contract

Washington, DC is coming under scrutiny for its recent sports betting licensing procedure. The Council of the District of Columbia… Read More

July 9, 2019 11:26 pm
  • Industry
  • Sports

Sports Betting in Puerto Rico Is Just Around the Corner

Puerto Rico is falling on hard times. A major debt crisis and Hurricane Maria have devastated this territory. Sports betting… Read More

July 5, 2019 10:33 pm
  • Gambling Laws
  • Industry

Sports Betting in Indiana to Launch on September 1st

Regulators and operators in Indiana hope to open their sports betting operations on the first day permissible under the new… Read More

July 5, 2019 10:04 pm