Gambling laws in Czech Republic

  1.  Regulatory framework
    1. Is there a Gambling Act (or equivalent) in place?    
    2. Is online gambling a regulated activity?
    3. Are there any regulators?
    4. Is there a regulatory regime related to advertising gambling?
  2. Structuring and corporate governance
    1. Is a local presence necessary to run gambling activity?
    2. If yes, are there any mandatory legal forms of business for gambling companies?
    3. Can a local subsidiary be formed by foreign shareholders?
    4.  Are there foreign investment restrictions?
    5. Are there any minimum requirements for a gambling company’s statutory capital?
    6. Can management include foreign individuals?
    7.  Are there any mandatory reporting requirements (beyond tax) regarding a gambling company’s corporate governance matters?
  3. Licensing
    1. Do local regulations set out a clear licensing framework for gambling (including the licensing process, criteria, submission requirements, licensing conditions and ongoing compliance requirements)?
    2. Is gambling licensing specific to:    
    3. Is the creation of video games for gambling by a software developer subject to gambling licensing?
    4. What is the term of a licence/permit?
    5. How long does it take to obtain a licence/permit?
    6. Is there any limit on the number of licences that can be granted?
    7.  Are there any specific licensing requirements?
  4.  Compliance
    1. Are there any mandatory AML rules generally and for gambling industry specifically?
    2.   Are there any specific reporting obligations for gambling companies in terms of AML and data protection?    
  5.  Data Protection 
    1.  Are there any specific Data Protection regulations in place?     
    2.  If yes, do they apply extra-territorially?     
    3.  Is there a Data Protection Regulator?     
  6.  Currency control and other cross border issues
    1.  Are there any currency/exchange/finance controls at the present time to transfer cash out of and into the country?     
    2.  Where currency/exchange/finance or capital controls do exist:
  7.  Marketing and advertising 
    1.  Is the advertising/marketing of gambling activity allowed in your country?  
    2.  Are there any advertising methods which cannot be used by gambling companies? 
    3. Can gambling companies be sponsors of sports events?
    4.   Is it allowed to involve celebrities to advertise gambling activities?
    5. Are there any CSR requirements for gambling companies?
    6. Are there any other restrictions/limitations on advertising gambling activities?
  8.  Tax 
    1. Is there any specific tax regime for gambling companies?    
    2.   Is there a tax implication for transferring cash out of the country?    
    3.   Is there a tax implication for transferring cash into the country?    
    4.   Is there a tax implication for offering trading activities remotely in the country?     
    5.  Are there any other observations regarding the taxation of gambling activities (locally and remotely)?     

1. Regulatory framework

1.1 Is there a Gambling Act (or equivalent) in place?    

Yes.

Act No. 186/2016 Coll., on gambling, as amended (the “Gambling Act”).

1.2 Is online gambling a regulated activity?

Yes.

Internet games are a regulated activity under the Gambling Act.

1.3 Are there any regulators?

Yes.

The Ministry of Finance and to some extent local municipal offices and customs authorities.

Website: www.mfcr.cz/cs/soukromy-sektor/hazardni-hry

Yes.

Act No. 40/1995 Coll., on the Regulation of Advertising, as amended.

2. Structuring and corporate governance

2.1 Is a local presence necessary to run gambling activity?

No.

No, however one of the requirements for operators is to have their registered seat in the Czech Republic, another EU member state, or a member state of the European Economic Area.

No.

2.3 Can a local subsidiary be formed by foreign shareholders?

Yes.

2.4 Are there foreign investment restrictions?

No.

2.5 Are there any minimum requirements for a gambling company’s statutory capital?

No.

There are no requirements regarding the minimum statutory capital, however the Gambling Act requires the operator to have its own resources equal to a minimum of EUR 2,000,000.

2.6 Can management include foreign individuals?

Yes.

2.7 Are there any mandatory reporting requirements (beyond tax) regarding a gambling company’s corporate governance matters?

Yes.

The operator is obliged to keep and submit reports for every game of chance (daily game record, daily game report or remote access report) via secured distant means in the form of automated outputs and in the specified extent, format and structure for the respective reporting period.

3. Licensing

3.1 Do local regulations set out a clear licensing framework for gambling (including the licensing process, criteria, submission requirements, licensing conditions and ongoing compliance requirements)?

Yes.

3.2 Is gambling licensing specific to:    

3.2.1 Betting?

Yes.

3.2.2 Sports?

No. 

Considered as “odds bet” or “totalisator game” for which there are specific licensing requirements.

3.2.3 Skill games?

No.

Considered as “live game” for which there are specific licensing requirements.

3.2.4 Card Games?

No.

Considered as “technical game” or “live game” for which there are specific licensing requirements.

3.2.5 Casinos?

Yes.

3.2.6 Lotteries?

Yes.

3.2.7 Arcades?

No.

Considered as “technical game” for which there are specific licensing requirements.

3.3 Is the creation of video games for gambling by a software developer subject to gambling licensing?

No.

3.4 What is the term of a licence/permit?

Yes.

Up to six years.

3.5 How long does it take to obtain a licence/permit?

Yes.

30-60 days.

3.6 Is there any limit on the number of licences that can be granted?

No.

3.7 Are there any specific licensing requirements?

Yes.

Requirements on the gambling operator (the place of its registered seat, clear organisational structure, transparent financial resources, indebtedness and no criminal record, etc.).

Requirements on the operation of games of chance (game plan, evidence of server location, deposit payment, etc.).

4. Compliance

4.1 Are there any mandatory AML rules generally and for gambling industry specifically?

Yes.

There are mandatory general AML obligations on operators, and certain specific obligations under the Gambling Act, e.g. mandatory identification and monitoring in casinos.

4.2  Are there any specific reporting obligations for gambling companies in terms of AML and data protection?    

No.

5. Data Protection 

5.1 Are there any specific Data Protection regulations in place?     

No. 

Certain specific obligations related to the processing of personal data, e.g. mandatory identification and monitoring in casinos.

5.2 If yes, do they apply extra-territorially?     

No.

5.3 Is there a Data Protection Regulator?     

Yes.        

The Office for Personal Data Protection.

6. Currency control and other cross border issues

6.1 Are there any currency/exchange/finance controls at the present time to transfer cash out of and into the country?     

No.

6.2 Where currency/exchange/finance or capital controls do exist:

N/A

6.2.1 What is the approval regime and process in place?

N/A

6.2.2 Must permission be sought for each transaction, or can pre-approvals take place (subject to defined limitation, or otherwise)?

N/A

6.2.3 Other comments

N/A

7. Marketing and advertising 

7.1 Is the advertising/marketing of gambling activity allowed in your country?  

Yes.         

7.2 Are there any advertising methods which cannot be used by gambling companies? 

Yes.   

It is prohibited to place advertisements on the outside of buildings and inside publicly accessible buildings where the gambling premises are located.

Advertisements for games of chance cannot be targeted at persons under 18 years and specifically cannot depict such persons or elements, means or actions which attract such persons.

7.3 Can gambling companies be sponsors of sports events?

Yes.         

7.4  Is it allowed to involve celebrities to advertise gambling activities?

Yes.         

7.5 Are there any CSR requirements for gambling companies?

No.        

7.6 Are there any other restrictions/limitations on advertising gambling activities?

Yes.         

Each gambling advertisement must include a disclaimer regarding the minimum age requirement of 18 years and the disclaimer that participating might lead to gambling addiction and cannot lead to a stable income comparable to income from work or similar activity.

8. Tax 

8.1 Is there any specific tax regime for gambling companies?    

Yes.        

The final amount of tax is the sum of all the partial taxes for individual types of games of chance operated by the operator in the given tax period. The gambling tax is 23% for all games of chance except for lotteries and technical games, which are subject to 35% gambling tax.

8.2  Is there a tax implication for transferring cash out of the country?    

No.

8.3  Is there a tax implication for transferring cash into the country?    

No.

8.4  Is there a tax implication for offering trading activities remotely in the country?     

Yes.        

Games of chance operated over the internet are considered operated in the Czech Republic even if they are only partially aimed at persons residing in the Czech Republic.

8.5 Are there any other observations regarding the taxation of gambling activities (locally and remotely)?     

No.

 

Find out more gambling regulation related to Czech Republic in the CMS Expert Guide to online regulation in Europe.

Portrait ofTomáš Matĕjovský
Tomáš Matĕjovský
Partner
Prague
Portrait ofJan Ježek
Jan Ježek
Senior Associate
Prague