Slovakia to open market up to international operators from 2020
European country submits amended gambling legislation to European Commission
The Slovakian government has sent its new gambling bill to the European Commission for review and approval, potentially opening the Slovakian egaming market to international operators for the first time.
The amended gambling act is expected to come into force with effect from March 2019, if approved, with a licensing system set to be in place from 2020.
European Commission officials will now examine the bill’s text over a three-month period to see if it does or does not contravene existing EU laws, before commissioners provide a recommendation to the Slovakian government as to where the bill will need to be amended.
The new bill amends the existing Slovakian Gambling Act, which first came into force in 2005. The latest version of the bill, first proposed in May, regulates egaming as part of two step strategy which began in 2017, when a controversial previous amendment of the 2005 Act was brought into force, introducing censorship and the blacklisting of unlicensed operators targeting Slovakian citizens.
This, together with increased enforcement action against operators was designed to stop operators running these activities without a license in Slovakia, with heavy fines for both operators and advertisers alike.
Since the introduction of restrictions, over 200 websites have been added to the blacklist and blocked, including big names such as William Hill and bet365. The new amendment continues these rules but now allows operators to apply for licences, with websites being removed from the blacklist upon award of a Slovakian egaming licence.
Egaming operators wishing to apply for a licence must have a registered office in Slovakia or another EU member state, with licensees required to pay an application fee of €3m and a 23% taxation rate on annual gross gaming revenue.
In addition to these measures, a new regulatory body is to be established with full powers over licensing, inspection and the powers to issue new guidelines and directives to licensed operators. The Slovakian ministry of finance will take on this responsibility for the foreseeable future.
Keen to stress the benefits that greater regulation contained in the act would bring, the ministry said: “it would take technological progress and the findings of regulatory authorities in other European countries into account more fully, while simultaneously improving the protection of players from possible harmful effects directly related to services provided in this sector.”