Unauthorised online gambling a financial problem for Czech government

The government auditor for the Czech Republic has been critical of the country’s Finance Ministry in its handling of gambling issues, and claims that unauthorised online operators outside the borders of the nation are taking an estimated Euro 21.6 million annually out of the country, and making no contribution to the community.

The Finance Ministry has also been accused of spending tax monies on an inefficient information system for lotteries and gambling, a charge to which the Ministry has responded by assuring government that work is already advanced on a “technical solution” that will introduce a central monitoring system linked to licensed operators.

Finance Ministry spokesmen said this week that drafting work was at an advanced stage on new gambling legislation that will liberalise the country’s 24-year-old gambling laws by allowing online gambling operators from other EU member nations to set up business and obtain licensing.

This could generate an addition K1 billion in tax revenues, they said, adding that the initial draft would be submitted to government for discussion later this year.

The auditor also commented critically on the apparent failure of the Ministry of Finance to police existing permit holders, noting that despite some operators serially breaching licence conditions, not a single permit had been pulled.

In related news, the Bulgarian State Gambling Commission has reported on its first online gambling contributions to government coffers, posting a contribution of Lev 30 million ($20 million) from fees, gaming taxes, fines and penalties in the new market.

And in Mexico, the president of the Mexican Gaming Commission, Fernando Zárate Salgado, has revealed that a new government bill which includes online gambling regulation has been subjected to extensive consultation and debate, and will be submitted to the House of Representatives on September 9.

Salgado told local media he was hopeful that the bill would be approved before the end of September.