Czech Republic re-regulation "still on track"
Lawmakers pass first reading of amendment to increase tax rate as wider re-regulation gathers pace
The Czech Republic took a step closer to its planned re-regulation as the country’s lower house gave first approval on a bill which is set to raise the tax rate on online gambling.
Under the amendment, sports betting will be taxed at 23% of revenues, although this will be offset by a 28% on gaming and slots.
The new sports betting tax rate, which was provisionally agreed in September, is higher than the current 20% flat rate but lower than the feared 25% initially proposed.
While the amendment must still be given final approval, Prague-based gaming lawyer Jan Rehola told eGaming Review there appeared to be the political will to push the new tax regime through parliament, and added that the amendment would likely enter into force on 1 January next year.
Rehola said that despite its complexities, the new regulatory framework was “still on track” for a full implementation on 1 January 2017.
The new Gambling Act will remove a number of major obstacles for foreign operators, but other hurdles do remain, including stringent responsible gambling requirements and limits on depositing methods.
Nonetheless, it should see an increase on the five operators currently licensed to supply fixed-odds betting in the country, which include Fortuna and Tipsport.