Czech Government Claims Success Purging Illegal Online Gambling

Published Monday, July 02, 2018 - Online-Casinos.com
Czech Government Claims Success Purging Illegal Online Gambling

The are many online gambling jurisdictions in Europe that have enacted measures to keep unlicensed operators from accessing their markets with some of them successful. The Czech Republic installed a new gambling regulatory platform on January 1, 2017 that resulted in most internationally licensed online operators leaving the Czech gambling market. The new regime with the heavy taxes of 23% on sports betting, up to 35% for slots, all of this on top of a 19% corporate tax has pushed offshore operators out of the competition. There are also restrictions on bonus offers which hinders attracting new participants. Some offshore firms have come back to the Czech gambling market despite the reduced profitability.

The Czech Ministry of Finance recently released the official statistics revealing that in 2017 gambling revenue was up only 1.1% from 2016 even though gambling spending rose 14.1%. Online gambling rose 56% year-on-year representing a little better than one-fifth of the overall market. Online fixed-odds sports betting also saw a healthy increase in activity.

The Czech government is cashing in with its new structure setting new fecords for profit due to the tax reforms and licencing fees attached to online gambling operations.

A forecast regarding revenue generated by gambling was presented by Finance Minister Alena Schiller which revealed that the state’s 2018 gambling take would likely fall to a level which is then expected to stabilize over the next couple of years. The Finance Minister maintains that the effort the government has made to rid the Czech gambling market of unlicensed online gambling operators has been ninety percent successful. The illegal offshore online betting aspect is only part of the Czech government’s problem with the authorities also closing about two hundred illegal terrestrial  gaming venues, seizing around 1,500 electronic gambling machines while doing so.

 

 


 

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