Main Casino Licenses (34) Ministry of Finance of the Czech Republic

Online Casino Licence from the Czech Republic

The regulatory authority in the Czech Republic is the Ministry of Finance. They authorise the issuing of basic licences to online casinos that are valid for 6 years and are non-transferable.

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Czech Republic Licence

A basic licence is issued to permit the following types of gambling entertainment via the Internet:

  • lottery
  • sports bets
  • bets on games with a random chance
  • tote
  • bingo
  • technical (against the operator's software system)
  • live (with a dealer or against each other)

The Czech Republic regulator approves the types of permitted online entertainment, the conditions for their operation, the game plan and the equipment with which it operates.

Jurisdiction

The Ministry of Finance of the Czech Republic [1] makes the decision to issue, change or revoke a licence. Gambling activities are regulated by Law No. 186/2016 Coll [2]. "on gambling" dated the 26th of May 2016. The Law applies to activities related to the organisation of online entertainment in the Czech Republic.

Tax Rates

According to Law No. 187/2016 Coll [3]. “on gambling tax” dated the 26th of May 2016, tax is calculated as the sum of partial tax bases.

The rates are:

  • 35% - for lottery and technical games
  • 23% - for sweepstakes, bingo, live sports, totalizator games and foreign currency bets

An increase in tax rates was expected from the 1st of January 2020. It was anticipated that the changes would be 30% of gross income from online entertainment including live games and bingo and 25% from stakes. However, Law No. 187/2016 Coll. has not yet been amended.

How to Get a Licence in the Czech Republic

An online casino can be based in the Czech Republic or a legal entity with:

  • a registered office in the Czech Republic, an EU member state or a member state of the Agreement on the European Economic Area (EEA).
  • a transparent organisational structure
  • the presence of a supervisory, administrative board or similar body
  • own resources in the amount of 2 million euros (their origin must be transparent and justified)
  • a pronounced ownership structure, including the beneficial owner, which, in accordance with the Law, regulates measures to combat money laundering and terrorist financing
  • material, human and organisational resources for the implementation of gambling activities

When applying for a licence, the applicant shall attach the following package of documents:

  1. A list of persons who are part of the company, its statutory/control body and the beneficial owner.
  2. A document confirming the absence of debts.
  3. A game plan.
  4. A document on the professional assessment and certification of gambling equipment and the location of the server.
  5. The identity of persons of good standing representing the applicant and foreign citizens will need confirmation of their good reputation.

At the time of filing a licence application, all of the documentation attached to it must not be more than 3 months old.

According to the current Czech law, websites with online activities must be available in Czech. The server and equipment for conducting the lottery as an Internet entertainment must be located on the territory of a state that is a member of the EU or EEA.

To obtain a licence to operate an online casino in the Czech Republic [4], the applicant must pay a deposit for each type of online entertainment. You can use the deposit to pay taxes for Internet entertainment or fines for offenses in gambling.

Deposit amount:

  • CZK 30 million for bets, sweepstakes and bingo
  • CZK 50 million for lottery, technical and live games

The origin of the funds used for the deposit must be proved by the applicant.

FAQ
Where can I get an application for a licence to organise an online casino in the Czech Republic?

The Ministry of Finance website provides a downloadable application form for obtaining a basic licence, along with guidelines for filling it out.

Under what conditions can a licence be issued?

In the case when the applicant:

  • has fulfilled the conditions that relate to the requirements for the current operator
  • has not been involved in criminal cases and has not commited offenses
  • has not been bankrupt within the last 3 years and has no debts
  • has made a deposit

Also, in the Czech Republic gambling activity should not violate public order. Internet entertainment and the devices with which Internet entertainment is used must comply with the requirements of the Law.