Peculiarities of Running an Online Casino Business in the Czech Republic

One of the European nations that has legalized the gambling sector is the Czech Republic. Casinos in the Czech Republic are incredibly popular, with over 100 clubs in the country. Prague is among the largest centers of gambling tourism in Europe. Every year, they serve millions of visitors from all over the world. Travelers who live in countries where gambling is prohibited by law come especially to play poker, baccarat, or popular slots. There are land-based gambling establishments and many websites offering a variety of entertainment activities in the country. They offer services officially; some provide an option of online casino paysafecard, some give money for registration; some support loyalty programs with bonuses and tournaments.

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Online gambling has been legalized in the Czech Republic since 2017. State supervision of gambling companies is carried out through the current law called ZHH. Each establishment is required to obtain a document for operation and regularly pay tax on income. Without it, online casinos in the Czech Republic cannot operate. Unauthorized opening of the resource for gambling entertainment is subject to serious fines.

Gambling legislation in the Czech Republic

Currently, the “On Gambling” law, which went into effect on January  2017, describes the rules governing gaming establishments in the Czech Republic. Online casinos were included in the list of gambling options in this rule. The nation has a law on lotteries and other gambling that was published in 1990, before January 2017. The Czech Republic currently permits the following types of gambling:

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  1. Bingo, poker, and other card games;
  2. Slot Machines;
  3. Casino games (Roulette, Baccarat, etc.);
  4. Lotteries;
  5. Sports Betting.

Not all categories of citizens in the Czech Republic have access to casino amusement. Restrictions apply, for instance, to those who have been formally declared bankrupt. The coordinates of those whose access to casinos is forbidden are put in a specific register. However, they are allowed to purchase lottery tickets and participate in modest activities. Gambling is not permitted for anyone under the age of 18.

Regulation and casino licensing

The primary regulatory organization in charge of policing gambling operations is the Ministry of Finance. A license can be obtained through a multi-step process. The Ministry of Finance must first provide a basic license. Following that, the relevant municipal authorities must grant licenses for the intended use of the premises to land-based establishments. The organization Tax Cobra, established with the assistance of the Ministries of Finance, fights against unlawful gaming.

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A business needs to fulfill the following criteria in order to be granted a license:

  • a clear organizational structure;
  • an authorized capital of at least 2,000,000 EUR;
  • legal entity status in the Czech Republic or the EU;
  • adequate human and financial resources.

On average, it takes about 30 days. The fee for registration of a basic license is 200 EUR, and for gambling premises, 150 EUR. Permits for online casinos are issued under similar conditions, with the exception of clauses concerning premises.

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The fight against illegal gambling is handled by Tax Cobra. It was created with the support of the Ministries of Finance. Its responsibilities include the identification of offenders and the issuance of fines in accordance with applicable national legislation. Thanks to the active position of government agencies, finding a casino without fraud in the Czech Republic is not difficult. Official gambling establishments will not use fraudulent schemes because if the fraud is detected by the regulator, they will have to pay a large sum. In cases of serious violations, the ministry will simply close the gambling club. Subsequently, it will be extremely difficult for the operator to obtain a new license and continue working. This applies to no-deposit casinos in the Czech Republic that work online. Serious measures may be applied to the sites for deceiving visitors, accepting citizens under 18 years old, and operating without a license.

Responsible gambling

Reliable casinos in the Czech Republic adhere to international policies. One of the main ones is the “Responsible Gaming” policy. It obliges the operator:

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  • Publish legible and accessible information for participants on the online casino’s website;
  • Warn of the high risks;
  • Provide the contacts of the institutions carrying out preventive measures and treatment of addiction;
  • Offer customers the option of self-restriction whenever they sign up.

The government understands the importance of the Responsible Gambling Policy. The Ministry is developing a register of individuals excluded from participation in gambling. In addition, players will be able to independently apply for inclusion in this list. Certain individuals will get there automatically. These include people receiving an allowance from the state and gamblers with an addiction problem who have a court-ordered ban on gambling.

The policy and regulation of gambling clubs have significantly reduced the number of addicts among citizens under the age of 25. International and local organizations actively support addicted people and help them become full members of society again.

For operators, the ministry developed the “RVO Gaming Platform” in 2020. It hosts the information system of the Register of Individuals who are not eligible to participate in gambling entertainment. Through the platform, licensed casinos in the Czech Republic can continuously verify the identity and age of those wishing to register on the site. The first casinos in the country rarely adhered to the principles of responsible gambling. Because of this, the number of addicts increased significantly. In the last 10 years, the ministry has taken control of the problem. Land clubs and online casinos for Czechs have become less accessible. Underage players cannot play slots or withdraw prizes until they are verified.

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