A Strong Short Term Annual Performance in the Czech Market is the First Step of Long-term Growth

Published July 19, 2020 by Lee R

A Strong Short Term Annual Performance in the Czech Market is the First Step of Long-term Growth

A shifting market and taxation system has the Czech Republic streamlining its emerging model.

The Czech market has turned in sweet figures for fiscal 2019, to the tune of 16.0% growth.

Drivers of Growth

The drivers of this growth were gained from upticks in online and land-based slots; and lottery and betting revenue, pushing total revenue reported by the Czech Finance Ministry to a peak of CZK36.27bn (£1.22bn/€1.36bn/$1.53bn).

Wager Totals

Amounts wagered rose a whopping 56.1% to CZK389.19bn for the year, for a win of CZK352.93bn.

Online Sports Betting

A 15.8% boost to sports betting (to take CZK8.23bn) was accelerated by online punting as well: customers staked CZK78.41bn, which generated CZK7.73bn in revenue for operators, representing 87.5% of the full-year total.

The Slot Factor

The star performer in 2019 for the Czech market was slots, which recovered strongly from a rocky 2018 that saw bonus restrictions and customer verification requirements drive down revenue into decline.

The 2019 Rebound

The strong rebound in 2019 was bolstered by land-based performance: customers staked CZK196.45bn, to contribute revenues of CZK15.11bn (17.1% jump).

Online slots brought in a healthy gain of 47.4%, to reach CZK2.83bn.

Slot Popularity

Local specialty slot machines continue to dominate, both land-based and online, as the land-based market phases out.

The Greater Goal

Slot machines are a key towards a longer term rebound, with 2019 figures remaining 8.8% off 2017’s result, when stiff new taxes drove a segment of operators out of the Czech market completely.

Upon Closer Review

The Czech market authority appears to be playing the long game its specialty offering slots: in 2019 slots accounted for CZK196.5b of turnover to nearly double 2018’s total—driven by a taxation system based on sums wagered per spin rather than customer deposits.

Tax Impact on Slots

This pushed slots revenue growth up some 21% to almost CZK18b, with CZK2.8b contributed from the online verticals.

Slots Landscape

Land-based slots remained persistent, with a 17% even while despite the number of land-based slots available fell 16.2% last year to 36,464, a figure rerpesenting half of the 74k machines available in 2012—and while the country’s total number of slots halls fell a third last year.

Outlook

It all seems to add up to a concerted push in the Czech market to move its specialty offering slots online, and reduce operating costs from land-based operations to increase net revenue benefits.

 

See also

Denmark Gambling Shows Growth for 2015

New Transparency Market Report Reveals Robust Industry Growth Worldwide

Black Friday Curbs Online Gaming Growth

Figures Show: Cherry Growth for 2015 Driven by iGaming

Global Online Gambling Keeping Steady Growth


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