Czech Republic passes law to welcome foreign operators

The Czech Republic is set to open its doors to foreign online gambling operators for the first time next year after its parliament yesterday ratified a new tax and regulatory framework.

The licensing regime, which will replace legislation dating back to 1990, was signed by the country’s lower house and is expected to go live in January 2017, subject to approval from President Milo?? Zeman.

Under the new legislation, online sports betting will be taxed at 23% of gross win, lower than the 25% rate originally proposed by the minister of finance, while online slots will be taxed at 35%.

The 23% figure was described as a “win for the gambling lobby” by finance minister Andrej Babis, citing successful lobbying attempts from operators such as Fortuna and Sazka over the last few months.

A number of foreign operators are said to be interested in obtaining a licence in the Czech Republic which had previously restricted online gambling to operators with a retail presence in the country.

Speaking to eGaming Review this morning, a spokesperson for Paddy Power Betfair said the company would consider market entry once the new regime was officially in place.

“Whilst recent developments have been encouraging, the regulation is yet to reach the final approval stage; if and when it does we will review our position and decide on next steps, including possible market entry,” a spokesperson for the operator said.

According to EGR sources, President Zeman is expected to sign the new legislation into law within the next six to eight weeks.