Czech Republic plots unlicensed gambling tax
Operators consider pulling out of market as local government reveals plan to levy unlicensed firms
Czech Republic-facing operators are considering their future in the market following news the country’s government is planning to tax unlicensed operators.
According to a report by local news agency HospodáÅské Noviny, the Ministry of Finance wants to levy the profits derived from Czech-based players in order to recoup some of the estimated CZK600m (£17m) in tax it loses out on each year.
eGaming Review understands a number of operators are currently taking legal advice over the move, which could lead to firms deciding to pull out of the market altogether.
Should the tax pass into law, unlicensed operators would face a levy on profits of up to 20%, although the government is said to be considering increasing this to 30%.
Speaking to HospodáÅské Noviny, Betfair general counsel Martin LyÄka said an introduction of an unlicensed gambling tax could see Betfair and a host of other firms leave the market.
“If next year the Ministry chooses a new strategy, it is likely that the big players including Betfair [could] leave the Czech [market] and stop accepting bets,” LyÄka said.
A spokesperson for Betfair this morning told eGR it was in the process of reviewing the tax proposals and, while the operator had no “immediate” plans to withdraw from the market, it considered the country’s tax rate to be “too high”.
Last year the Czech Republic announced plans to amend its licensing structure to enable firms to gain a licence without having to establish a physical presence in the country, which is a current licence requirement.
At present, there are only a handful of licensed remote gambling operators in the country, including the likes of Fortuna, which is now headed up by former Gala Interactive managing director Per Widerstrom, and Tipsport.