Autonomy in Gambling Regulation Granted to Prague by Czech Court Decision
Prague Gains Autonomy to Self-Regulate Gambling
A recent ruling by the Czech Constitutional Court has granted Prague the power to self-regulate gambling, allowing individual districts to set their own rules, effective immediately.
Of the 57 districts, 41 have already implemented bans on live casino games, such as poker, roulette, and blackjack. Remaining districts have imposed restrictions on operating hours. The new regulations will consider local concerns regarding gambling and allow for tailored decisions based on district needs.
The ruling, based on the Czech gambling regulation of 2021, permits the offering of live casino games in Prague, although slot machines remain banned. In 2023, the Ministry of the Interior and the Czech Office for Competition Protection challenged this regulation due to perceived anti-competitive nature and lack of clarity. However, the Constitutional Court rejected the appeal, finding it in line with the 2016 Czech Gambling Act.
For companies wishing to offer gambling services in the Czech Republic, they must possess a Czech license, issued by the Ministry of Finance. The Czech Republic also maintains a national self-exclusion register, which aims to prevent problem gamblers from accessing the market.
The gambling industry has faced scrutiny recently following a large-scale investigation by the Czech financial authority, which uncovered tax evasion for the years 2021 and 2022. accused gambling providers face substantial back taxes and penalties related to false statements to the tax authority, yet the specific offenders remain undisclosed.
The Prague City Council has welcomed the Constitutional Court's decision, viewing it as a significant step towards district self-determination and increased population protection. The new rules allow for more responsive gambling management in tune with local community needs. However, the fragmented regulation may create challenges for operators in adapting to various district rules, potentially leading to increased operational costs and complexity.
Background: Gambling Regulation in Prague
Prior to the ruling, the city of Prague established gambling regulations through a 2021 city ordinance. The ordinance banned technical games like slot machines throughout the city. Though live dealer games such as poker and roulette were allowed at land-based casinos, each district was granted authority to decide whether to ban these games or impose time limits.
The self-regulation aims to address concerns about public safety and gambling addiction, allowing districts to tailor their rules to minimize these issues accordingly. However, potential impacts on the local economy, employment, and revenues are still under consideration.
Looking ahead, the Czech Republic is considering further gambling regulation adjustments, targeting more nuanced approaches to managing gambling based on the riskiness of games. These tailored regulations could potentially create additional challenges for gambling operators in Prague.
What about the future legal status of lotteries in Prague, given the new self-regulation?
Now that slot machines are banned in Prague, will other casino-and-gambling activities, such as casino-games or lotteries, be subject to district-specific regulations based on local concerns?
