Judgment issued in Czech Republic: Prague granted authority in casino regulations control

Judgment issued in Czech Republic: Prague granted authority in casino regulations control

Loosening the Grip: Prague's Autonomy in Gambling Regulation

• Prague Districts Set to Self-Govern Gambling Rules
• 41 Districts Already Ban Live Casino Action
• Ruling Elevates Local Power and Addiction Prevention

Prague's Gambling Future Looks Decentralized

In a groundbreaking move, the Czech Constitutional Court (Ústavní soud České republiky) has given Prague the freedom to manage its gambling regulations [Link in English]. All 57 Prague districts will have the autonomy to set their own rules surrounding gambling.

Starting today, these districts gain the power to impose their own restrictions, even going as far as to ban popular games like poker, roulette, blackjack, and other dice and card games.

The court's decision aligns with the 2021 gambling regulation in the Czech Republic. Originally, live casino games were allowed to be legally offered in Prague. However, slot machines remain banned across the city under this regulation.

Earlier in 2023, the Ministry of the Interior and the Czech Office for Competition Protection (ÚOHS) [Link in English] contested the gambling guidelines, claiming they were anti-competitive and unclear.

However, the Constitutional Court dismissed the appeal, stating these regulations abide by the 2016 Czech Gambling Act.

Gambling in the Czech Republic: A Blend of Legalisation and Countermeasures

Licensed gambling companies can legally operate in the Czech Republic. The Ministry of Finance (Ministerstvo financí České republiky) issues the licenses, with casino games, sports betting, and lotteries all falling under regulation within the country.

Additionally, the Czech Republic maintains a national self-exclusion register (Rejstřík vyloučených osob), which helps individuals with gambling addictions avoid the entire Czech gambling market. This system resembles the German OASIS self-exclusion system.

Prague Takes its Own Path in Gambling Regulations

So far, 41 out of the 57 Prague districts have opted for a complete ban on live casino games. The other districts have chosen to limit casino operating hours.

As the cities adapt their regulations to better serve their communities, the Court's ruling affirms the importance of community consideration. The new regulations allow district-specific decisions to be made, catering to the unique needs of each community.

However, the new regulations did not pass unanimously. Judge Milan Hulmák voiced criticism, stating that he couldn't find solid reasons for the varying gambling regulations within Prague.

Notably, the gambling sector has faced intense scrutiny after a significant financial authority investigation. The probe discovered evidence of tax evasion in 2021 and 2022.

The financial authority demanded an estimated 540 million CZK (around 22 million euros) in unpaid taxes from the gambling industry. Furthermore, the industry faces additional penalty charges due to false statements made to the tax authority. The specific companies involved in this scandal have yet to be disclosed.

Despite the ongoing scrutiny, the Prague City Council has expressed support for the ruling of the Czech Constitutional Court. The new regulations are viewed as a crucial step towards self-determination for individual districts, ultimately benefiting the population.

• The Czech Constitution Court's decision allows Prague districts to regulate online casinos, including popular games like blackjack, poker, roulette, and casino-games, further decentralizing gambling within the city.
• Some Prague districts have chosen to ban live casino games, while others have opted to limit casino operating hours, reflecting the community's unique needs in casino-and-gambling matters.
• Despite controversies surrounding the gambling industry due to tax evasion allegations, the Prague City Council supports the new regulations, viewing them as essential for the self-determination of individual districts, ultimately benefiting the population.

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