OPERATORS LEAVE THE CZECH MARKET BECAUSE OF NEW GAMING REGULATIONS

According to the SBC News and Focus Gaming News, UK based online gambling operator GVC Holdings is set to leave the Czech market because of its licensing regime.

Just a few days after subsidiary PartyPoker announced that it would withdraw its license application, GVC Holdings revealed that the full brand would also be leaving the country.

Sending a communication to Czech affiliates and media partners, the operator has stated that following a review of market conditions it has concluded that current gaming laws are ‘incompatible with the principles of the European Union’.

During 2016, a number of international operators have complained about the business conditions imposed by the Czech government, stating that they are in direct breach of EU standards.

The gaming industry in Czech Republic is controlled by new legislation, which became effective in January 2017.

Czech gambling authorities have added a burdensome tax charge on online gambling services, which include a 23% of GGR on sports betting revenues combined with a 35% of GGR tax on casino slots play.

Furthermore, the laws require all Czech online gambling consumers to register personal details via an administration center referred to as the ‘Czech Point’ program.

In addition, even national enterprises such as Fortuna Entertainment and Synot Group have complained about ‘’predatory’’ tax levels, which have been deemed unworkable and damaging to wider sports stakeholders.

After Poland, Czech Republic is the second EU country with new regulations which make operators to leave market because of nonsustainable tax regime. It is another example that taxation is very sensitive area and sometimes happens that higher taxes make lower income for Government in wider scope.