Czech Republic comes closer to legalization for foreign online casinos

The Czech Republic has become much closer to licensing international online casino operators. The relevant bill has successfully overcome another procedural hurdle.

The Senate of the Czech Republic has approved a new gambling law for the country. The decision was adopted with a large majority of votes: 42 senators were in favor, while 23 abstained. No one voted against the bill. President Milos Zeman will have 30 days to consider and sign the bill into law. In case of a positive decision of the Head of the Czech Republic, the new law will come into force early next year.

The main objective of the new law is to remove the old ban on foreign online operators. Nevertheless, even if online casino operators are based in the EU and EEA they will face a very unpleasant surprise in the form of a new tax plan.

Under the new bill, lotteries and sports betting will be taxed 23 percent of gross income. The tax rate for casinos will be even higher at 35 percent. In contrast, the average tax on gambling activities in Europe is 19 percent.

Officials have taken preventive measures to minimise possible risks for people with addiction tendencies. In particular, there is a plan to establish a national database of "excluded" players to block their access to online casinos. Those in bankruptcy and people receiving financial assistance from the Czech Republic will be entered into this database, as well.