Illegal Online Betting Causing the Czech Republic to Lose Over EUR 21 Million a Year


Posted: September 8, 2014

Updated: June 4, 2017

The Czech Republic Supreme Audit Office warns local authorities about illegal online betting in the country.

According to the Supreme Audit Office (NKÚ), the country is losing about EUR 21.6 million every year, due to illegal internet betting in Czech Republic. It said many gambling companies are operating without a license, which means the state does not get any tax benefits from their activity.

After criticizing the Finance Ministry’s way of spending money and claiming its supervision over lotteries is ineffective, the NKÚ also filed a criminal complaint against the ministry’s actions. The lottery administration and control system are ineffective and bureaucratically demanding, the audit office found.

It also criticized authorities for not cancelling the permits of operators that broke the law, adding that some of them have breached regulations more than 50 or even 100 times. In response, the Finance Ministry said that it is in the process fixing these issues.

New gambling laws in the making

According to the Finance Ministry, all of these problems are caused by the country’s 24-year-old legal system, which is expected to be replaced soon. Officials are planning to introduce a new law, allowing EU-based, licensed gambling operators to cater to local players.

Online casinos and sportsbooks are forbidden under the current Czech gambling laws. Authorities have drafted a new bill to legalize internet gambling in the country, but the proposal has not been approved yet.

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