Bill in The Czech Republic Might Allow Online GamingPublished April 25, 2014 by OCR Editor
The Czech Ministry of Finance is drafting a bill set to allow operators in the country to offer online gaming together with a tax increase.
The Czech Ministry of Finance is drafting a bill set to allow the operation of online gaming throughout the country. The Czech Republic is a leader in the number of bars in its jurisdiction which operate with gaming licenses. Right as of the end of March 2014, there were 58,841 gaming machines in operation in the Czech Republic. The Czech Finance Ministry collects around 8 billion Czech Koruna in taxes from this gaming industry on a yearly basis; this is equal to around $402 million.
Bill Will Allow Online Gaming with a Tax Hike
In an interview to the financial magazine Bloomberg, the Czech Deputy Finance Minister Ondrej Zavodsky revealed the work on a bill which will allow all gambling operators in the country to offer online gaming.
According to Zavodsky, costs related to the gaming industry are about four times higher than the tax revenue collected by the Czech government yearly, a reason why the bill on which his office is working will include an increase for all gambling operators should they choose to offer online gaming. The bill would set separate tax rates for different types of gaming. "We need to create an environment that will allow us to tackle hard-core gaming like slots or table games" said the Deputy Finance Minister.
Possible Implementation Only in 2016
Provided the bill will pass, it is expected to be implemented in 2016, giving enough time for all gambling operators in the Czech Republic to review and develop their stance on the matter. Currently, slot operators in the country are required to pay a daily fee per machines. While casino and slot operators will face a spike in taxes with the new bill, lottery companies will get the benefit by being taxed less, presumably lower than the 20% operators pay nowadays.