PokerStars has announced its withdrawal from the Czech Republic, citing new online poker regulations. The company will surrender its license by June 20, ahead of the new laws taking effect on July 1. This decision comes after changes to the online gaming regulations were introduced in January, aiming to streamline and enhance the current landscape.
The new regulations have been designed to make the online gaming environment more efficient and effective. However, they also impose stricter requirements on operators, such as increased responsibilities to restrict problem gambling and a higher tax rate. These changes have not been well-received by all operators.
The updated laws broaden the scope of what is considered illegal gambling and simplify government investigations. As noted by international law firm DLA Piper, “The current amendment extends the definition of online gambling to all situations where the game is simply available in the territory of the Czech Republic. This potentially enables the regulator to investigate and pursue a much wider array of online services as illegal gambling operations and impose sanctions on them.”
Increased Tax Burden
One of the most significant changes in the new regulations is the rise in the tax rate for various forms of gambling. The tax rate for live games, bingo, odds betting, live betting, horse race wagering, raffles, and small-scale poker tournaments has increased from 23% to 30% of gross gaming revenue (GGR). This rise adds financial pressure on operators, contributing to PokerStars’ decision to leave the market.
PokerStars, which entered the Czech market in 2017, has not specified which regulations prompted its exit. However, the company has begun restricting deposits since June 6, and all player balances must be withdrawn by June 20. “PokerStars has no current plans to re-enter the Czech Republic market,” the company stated. They have assured players that refunds and accommodations will be provided for bonuses, tournament entries, or live events.
With PokerStars exiting, Czech players are left with fewer regulated online poker options. Fortuna Poker, part of the iPoker network, remains one of the few alternatives. The regulatory changes aim to create a more controlled gaming environment, but the departure of a major operator like PokerStars signals potential challenges ahead for both players and remaining operators.
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