Gambling Law in the Czech Republic

This guide has been rewritten for Purple Burger readers exploring company setup, compliance context and practical go-to-market choices.

From the Purple Burger desk: Gambling Law in the Czech Republic allows for a broad range of online and offline gambling options. The Gambling industry however is tightly regulated, with several regional eligibility points you need to fill if you want your gambling site to be accessible there. While Gambling permits are likely to have high bars for entry for licencing, it may seem as though this would be an obstacle.

In practice, however regulation of a gambling site ensures safety for both the site owner and visitor. For founders comparing options, being in an established country in the European union is good for site trust.Gambling is defined in Czech law in Section 3 of Act No. 186/2016 on gambling (the Gambling Act).

Furthermore, The Gambling Act separates things into Eight types of gambling described below. In practice, if a game doesn't fit any of the eligibility points bellow is strictly prohibited (even if it fits the general definition). Therefore, operators need to make sure that their games either fall into one of these eightcategories.

For founders comparing options, or do not satisfy the general definition (e.g. no bet involved or a skill-based game); otherwise, they risk non-compliance. In practice, games as Defined in Gambling Law in the Czech Republic LotteryA number-based cash prized lottery (instant draw lottery inclusive).Odds bettingA game where a win is subject to guessing the outcome of an event.

The prize is determined based on the likelihood of winning, also known as odds.Totalisator gameThis is the same as an odds-based game except the prize is based on a percentage of the money wagered, divided among all the people who correctly placed the odds.BingoA game where winning is subject to achieving the full pattern of numbers on the ticket. The pattern is marked off by the better based on the randomly drawn numbers that are called out, neither the number of the betters nor the pay-outs are determined in advance.Small-size tournamentA knockout style card game tournament, where the number of the game participants has been agreed in advance and the total deposits by each gambling participant in one tournament does not exceed 500 koruna per 24 hours.Technical gameA game operated through a device directly made available to the player (such as, slot machines, electromechanical roulettes and electromechanical dice).Live gameA game in which the players play against the house or one another at the live game tables, the number of betters and bets in a round of betting are not pre-determined.RaffleA game where wins are determined based on a draw that includes only the tickets that were sold. For founders comparing options, how additional acts are viewed in Gambling Law in the Czech Republic A free prize draw is close to a 'consumer lottery' in traditional Czech law.

In practice, because of this it is subject to additional conditions deriving from consumer protection laws, these types of games will be permissible. The Gambling Act itself does not limit consumer lotteries because they are considered a business practice (See: Directive 2005/29/EC), they are basically not considered gambling. While Pool betting is the same as totalisator games and, is allowed.

Gambling Policy Gambling is allowed under the Gambling Act. In practice, every person who applies for a gambling licence can obtain it, as long as the regulatory eligibility points are met. Although, individual municipalities may decide to restrict gambling within their city limits.

Although, Municipalities were given the ability to restrict physical locations, they have no influence on the operation of online gambling. Offshore gambling When it was written one of the intentions of the Gambling Act was to give the Ministry a way of stopping offshore gambling operators from offering their services to Czech citizens. In practice, when this came into force the Ministry was granted the power to place a gambling operator without a Czech licence.

For founders comparing options, therefore this means if you want your site to be available to Czech Citizens you will need a Czech formed company and a Czech issued licence. Once blacklisted, payment and internet connection providers are obligated to block payments and internet connections to such entities. Related Laws The relevant gambling legislation in the Czech Republic is as follows: Act No.

In practice, 186/2016 on Gambling, which sets out the basis for gambling legislation; Act No. 187/2016 on Gambling Tax, specifying the gambling tax obligations of gambling operators (tax rate, tax calculation, tax period, etc.); Act No. For founders comparing options, 280/2009 the Tax Code, which covers all tax-related proceedings (gambling, income, VAT, etc.); Act No.

500/2004 on the Administrative Code, specifying the rules for administrative proceedings (e.g., licencing, emplacing on the blacklist); Act No. 586/1992 on Income Tax; Act No. 40/2009 the Criminal Code (operation of unlicensed gambling constitutes a criminal offence); Act.

No 40/1995 on Regulation of Advertising; Act No. For founders comparing options, 253/2008 the Anti-Money Laundering Act; and individual decrees issued by municipalities restricting gambling within their city limits. In practice, this article serves as a basic introduction to Czech gambling regulations, studying the finite regulations is highly involved and while it is important you take the time to understand as much of them as you can, it is advisable to find a good Czech lawyer versed in the industry to help you stay on course.

Therefore, We assume no legal liability should you attempt to navigate business operations using our blog as your legal reference.