Czech citizens can bet at online licensed casinos in the region. For operators, the Czech Republic isn’t the most popular location to apply for licensing.
For those companies that do apply, the Central European country offers a long, vibrant history. Although the area is a beautiful location, the Czech Republic is expensive, and businesses pay a 19 percent corporate tax.
The gambling tax is 40 percent. Other expenses include employment and office space costs.
The high rate of taxation for online casinos is hard for local casinos. Foreign operators pay a lower tax rate, even though the Czech Republic requires every online casino to have an office location in the country to qualify for licensure. However, online sportsbooks are allowed for foreign operators.
New licensing requirements caused several online casinos to leave the country because of the new regulations and high taxation rates. However, international digital casinos accept Czech players, and leading gambling sites continue to apply for a Czech Republic gambling license.
Any online casino that meets the Czech Republic’s strict requirements for operators may apply for a license.
Online casinos may apply for a license upon meeting the following criteria.
Evidence of a history of ethical business practices is crucial to obtaining a license in the Czech Republic. Fair business practices may include transparency in business transactions, full disclosure of terms and conditions, and clarity in operational procedures.
Licensed online casinos should also conduct relationships with customers in an ethical and fair manner, which follows the spirit and letter of existing regulations. Each employee should operate consistently with ethical principles. Gambling transactions should follow high ethical standards.
Financial stability is another requirement. Licensed online casinos must maintain deposits of €185,000 to €1,850,000, depending on which games the casino offers. Upon meeting the strict requirements, an online casino is licensed for up to six years.
According to an ARHA report on Czech Republic gambling, the country’s gambling law is functional and provides player protection. The purpose of studying the gambling market was to evaluate it and recommend changes. As a result, the country’s regulators are not likely to devise more stringent laws in the near future.