Operators forced to wait as Czech market launch delayed
Nine foreign operators still await licensure despite new framework going live on 1 January
A host of foreign operators have been forced to put their regulated Czech Republic entry on hold after delays to the licensing procedure meant they were unable to gain their licences in time for the 1 January launch date.
Nine operators, including PokerStars, bet365, GVC Holdings and Paddy Power Betfair were left frustrated following the failure of the Czech Ministry of Finance to complete the licensing procedure on time.
And a number of operators, thought to include PokerStars and bet365, are understood to have pulled their products from the market through fear of penalty, while around 40 online sites offering a Czech language feature have been told by the Ministry they must withdraw the option or face being blocked.
The delay is thought to center on the late publication of technical standards, which weren’t approved until 23 December, little more than a week prior to launch date despite regulation being passed last spring.
As a consequence, the Ministry was unable to appoint the required third-party testing companies until 27 December, which has resulted in a back-log of operators, including indigenous operators, waiting for testing ahead of licensure.
There has also been an issue surrounding the introduction of the somewhat controversial ‘CzechPoint’ – a system which requires customers to register for online accounts in person at certain land-based stations located throughout the country.
The system, which will be used to verify IDs, was omitted from the country’s Gambling Act, however, politicians have since been able to implement the system through anti-money laundering legislation.
Operators feared the system would deter players from opening regulated online accounts and instead drive players to the black market, a concern which the Ministry had previously allayed with assurances that CzechPoints wouldn’t feature in the Act.
Furthermore, a planned register of players, which is aimed at preventing those who are unemployed and/or with financial problems from participating in online gambling, has also been delayed.
The Ministry has yet to select the provider of the system and this now looks unlikely to be implemented before 2018.