Czech government imposes loss limits on gamblers

Czech-licensed land and online gambling operators face a new burden this week following the implementation of a fresh government requirement which calls for the imposition of mandatory loss limits for players, and requires operators to halt service to punters who exceed the limits.

The Ministry of Finance issued guidelines this week requiring operators to set maximum hourly losses using a mathematical formula the Ministry has suggested as a tool to calculate the acceptable maximum hourly losses for players, based on factors like the size of the bet, the number of times bets have been placed in an hour and the average pay-out awarded.

The requirement joins a range of stringent consumer protection and responsible gambling regulations already enshrined in the Czech Republic’s 2017 Gambling Act, which came into force at the beginning of the year in this nation of 10.5 million people. Among these provisions are restrictions on bets and winnings, and the imposition of mandatory player breaks.

Online operators in the Czech market are already battling to achieve profitability, thanks to tax rates on GGR that range from 23 percent to 35 percent.

Several international companies withdrew from the market, citing heavy taxation, insufficient enforcement against unlicensed operators, sluggish bureaucracy, and a ponderous player registration process that requires would-be players to travel to public administration centres in order to physically identify themselves and register.

Earlier this year the Ministry of Finance revealed that around 10 foreign operators were currently applying for licences; a spokesperson also appealed for patience from operators and reminded them that the Gambling Act is subject to review and possibly changes after two years in operation.

Whether international operators are prepared to licence and hope that change can be effected at some future stage remains to be seen.