CZ

Czech Republic

Moderate
The Czech Republic is a yellow-level online gambling jurisdiction with partial regulation.

The Czech Republic is a land-locked country located in central Europe. It borders Poland to the north-east, Slovakia to the south-east, Austria to the south and Germany to the west and north-west.

Overview

It's hard to find other countries with online gambling laws as backward as the Czech Republic. They have regulated fixed-odds sports betting with no other form of gambling regulated, and they also have absurdly high taxes for licensees. However, they have no form of restriction for foreign operators when it comes to providing games to players inside of their borders, and officials have even went so far as to say that there is nothing illegal about unlicensed, foreign operators offering their games.

The end result is that the incentive structure is completely backwards in the Czech Republic. Licensees are effectively punished for pursuing licenses to operate in the country, and they really have no viable way to compete with the foreign, unlicensed operators. This results in a lose-lose situation for every party involved, including the players.

Licensing

The way that licensing works is that the Ministry of Finance allows certain operators to run fixed-odds sports betting in the country. There were originally five licensees, though one of them went bankrupt. The four remaining licensees have lobbied hard for massive changes in how the licensing process and enforcement are handled, and it's hard to blame them.

The licensing process also includes massive taxes that are particularly prohibitive. This includes 20 percent on gross wins along with a 19 percent corporate tax rate. Combined with the inability to compete with foreign operators that aren't policed in any way, it's virtually impossible for the licensees to gain a foothold in the Czech Republic.

Player Protections

The authorities in this country have been very clear about the fact that they have no intent of going after players for enjoying foreign operators because there is no law prohibiting them from doing so. If players decide to go with foreign operators, then they should stick with the most reputable brands available to minimize their exposure to any type of risk.

When it comes to playing with regulated operators, there are player protections in place. If you have a complaint, then you take it up with the Ministry of Finance since that is the regulatory body in the country. They will escalate this complaint as needed, and they seem to take these protections very seriously.

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