Czech senate ushers in new gambling framework

Czech politicians have overwhelmingly backed a new gambling bill, opening the country’s doors to foreign competition for the first time.

Following a debate in the Senate yesterday afternoon, 42 senators voted to introduce a new law which will enable operators based outside of the Czech Republic to apply for online gambling licences – 23 senators abstained from the vote while no one voted against.

The country’s president Milo?? Zeman now has 30 days to sign-off the new law and in turn kick-off the licensing process, with the liberalised regime expected to go live in January 2017.

At present, only operators based within the country’s borders and those operating land-based businesses can offer online gambling products, which has so far limited the market to just five licensees and judged to have breached EU competition law.

However, the new law will open the market up to those situated within the European Union or European Economic Area, which includes those based in Gibraltar.

“The new legislation will replace the outdated pre-Internet era law and finally align Czech regulation with EU law by allowing foreign EU/EEA providers to seek local Czech licences,” Robert Ne??p??rek, partner at local law firm Havel Holasek, told EGR.

The law comes coupled with new regulatory and tax frameworks, the latter levying all products at 23% GGR, bar RNG casino games which will be taxed at the higher rate of 35%.

To protect the vulnerable, the country will adopt a national exclusion database which will be made up of persons that voluntarily exclude, have been declared bankrupt or are receipt of social benefits.

And in order to police the new market, IP, transaction and advertising blocking measures will all be introduced while a blacklist and criminal sanctions for those found to have flouted the law will also be used.

The new law is expected to piqu? the interest of foreign operators with the Czech Republic online market estimated to be worth around ?200m a year.