No actions taken against unlicensed iGaming operators in Czech Republic

According to the local branch of the Transparency International (TI) non-governmental organisation, the new online gambling law in the Czech Republic is not working efficiently. Last year the country took some measures to regulate its gambling market in order to ensure compliance with EU regulatory standards. The new law took effect on January 1, 2017.

Under the new regulation, operators wishing to offer gambling services to the local market must first obtain a license. Providing unlicensed services is strictly prohibited and leads to the prosecution from the national regulator and police.

However, despite the new law, 25 companies are still offering gambling services without a licence. As revealed by David Ondracka, Director of TI’s Czech branch, officials have not taken measures yet to block such operators and urged the country’s Finance Ministry to take actions against violators. Ondracka intends to follow up on the matter again in April to see if appropriate measures are taken. He encouraged responsible officials to introduce IP blockage and in this way drive away operators acting against the law.

Even though the system has been changed in a way that was satisfying to the European Commission, industry insiders suggest that wider attention will not be attracted. Because of a taxation regime, introduced by Czech lawmakers, it will not be appealing to the most of operators. Apart from the tighter licensing process, companies providing services to Czech gambling customers have to pay 35% tax on full-year gross gaming revenue.