Czech press reported that unlicensed companies are still operating in the iGaming market.
Czech Republic.- Although the new frame work for the iGaming sector in Czech Republic has come into effect since the beginning of the year, the international press revealed that at least 25 unlicensed platforms are still operating in the European country.
The new legislation “Czech Act of 26 May 2016” bans the services of unauthorised online gaming operators and sets conditions to present projects for the licensing process. Furthermore, the law established tax rates of 23 percent of gross gaming revenue for sports betting and lotteries and 35 percent for RNG casino games, on top of the standard 19 percent corporate tax rate.
However, the media has reported that 25 companies failed to comply the law, as they keep offering their betting platforms without an official license. “Our monitoring shows that the biggest sinners are Unibet and Lottoland companies. Bet365 and Betfair interrupted their operation, but they did not switch off their websites,” commented David Ondracka, director of Czech of Transparency International, the Global Anti-Corruption Coalition.
Online gaming websites will be under probe for the next three months and will start facing stricter punishes. “The Finance Ministry must immediately call on gambling companies that did not ask for a licence to terminate their activities and switch off their websites. The firms which applied for a licence must temporarily limit their operation and set new conditions,” added Ondracka.