Population July 2013: 10.6 million
GDP 2012: 142 Billion EUR
GDP per capita: 19,800 EUR
Taxation for Lotteries: 20% GGR
Online Taxation:
ad-hoc, one-off licencing for sports betting
   

LEGISLATION

The Czech gambling law (Act no. 202/1990 of Collect. on Lotteries and Similar Games of Chance (Lotteries Act)) was amended in 2012. The requirement to distribute 20% of the profits of games of chance to projects that are beneficial to the public, was replaced by a tax of 20% on GGR, as of January 1, 2012. This was in part due to instances of corruption. The tax will now be split between the state budget and local municipalities (an 80/20 percent split for slot machine tax revenue and a 70/30 percent split for revenue from all other types of gambling). Only legal entities with a registered address in the Czech Republic can obtain a license to run a lottery. In addition, a foreign party may not hold ownership interest in the legal entity.

Online gambling is not explicitly mentioned in the Lotteries Act, but is considered to be regulated by it. The Ministry of Finance has the authority to grant licences, and has done so for five Czech companies offering online sports betting.

The European Commission has criticized the nationality requirements of the Czech law. In November 2013, the Commission again put pressure on the government when it issued a letter of formal notice, opening an infringement procedure against the Czech Republic. A planned overhaul of current gambling laws has been proposed, but implementation delayed. A new gambling bill would (likely) allow foreign parties to obtain a stake in the Czech gambling market, and would generally bring legislation more in line with EU principles.


CHARITY LOTTERIES

As far as we know, no national charity lotteries exist in the Czech Republic. As Sazka does distribute part of the sales to good causes, it is mentioned below. However, Sazka does not meet the criteria of a charity lottery.


OTHER LOTTERIES

  • SAZKA

    The lottery market is dominated by one player, Sazka, which possesses over 90% of the market. The company was founded in 1956. Previously, its shareholders were nine civil associations engaged in sports and physical education. The

    Czech Sports Association (now replaced by the Czech Olympic Committee) had a 68% share. Next to sports and physical education, health, culture and other charitable projects also received a small part of the profits. Over its existence Sazka has given over € 1.1 billion to these good causes, and given away over € 3 billion in prize money.

    However, Sazka was declared insolvent in 2011, and its shares were sold to KKCG. KKCG is a Czech oil and gas company that has branched out in other investments. It is now the sole owner of Sazka.

    Sazka offers sports betting, number lotteries (including a lotto game and Euro Millions) and scratch card games. Sazka also sells non-lottery products such as mobile phone recharging and selling tickets for sports and entertainment events, mostly through its distribution network of 6,200 points of sale.

    The overall revenues generated by the Company in 2011, as reported in the 2011 annual report, amounted to CZK 811 million (€ 29.5 million). The economic result (before taxes) for 2011 turned out at CZK -287 million (€ -10.4 million). Still, Sazka made contributions to OSZO, a civic association to the amount of CZK 383 million (€ 14 million), and to the Children, Culture and Sport Foundation (CZK 1.1 million, or € 40,000). For more information visit: www.sazka.cz