Czech Republic to increase gambling tax from 2020
Three-level taxation system based on risk of addiction included in proposals
Legislators in the Czech Republic have confirmed that taxation rates on lottery, bingo, live games and fixed odds sports betting will all increase from January 2020, as part of a wide-ranging tax reform.
From January, the current rate of taxation of lotteries, bingo and live games will rise from 23% to 30%, while taxation rates on fixed odds betting will rise from 23% to 25%.
The changes are based on three differing rates for different types of gambling; 35% for high-risk gambling, 30% for medium risk and 25% for the least dangerous offerings. These rises are based on previous changes first outlined by the Czech government in 2015.
Previously operators were taxed at 23% of gross gaming revenues (GGR) across the board, apart from gambling machines which are taxed at 35% of GGR.
The package also includes the removal of taxation exemption on winnings which exceed CZK 100,000 together with the introduction of a 15% withholding tax on winnings gained domestically.
The Czech Ministry of Finance has confirmed that some of these funds accrued from the increased taxation will be used to support problem gambling causes throughout the Czech Republic.
Alena Schillerová, Czech Finance Minister, said the increase in excise duties and taxation will diminish the impact of so-called addictive substances and activities, while also raising funds for treatment of problem gambling.
However, several trade bodies have said that the increased taxation will lead to the further expansion of the black market in the Czech Republic.