Operators would face 20-30% tax

Czech Republic plans to tax unlicensed online gaming operators

2015-01-23
Reading time 45 seg
(Czech Republic).- The Czech Republic is turning up the heat on unlicensed gambling companies operating sites within the country. The Ministry of Finance revealed a new plan on Thursday to levy these unlicensed companies with a tax that will make up for the estimated profit loss to the government through these sites. That figure is estimated to be 17 million euros annually.

Operators in the Czech Republic are scrambling to seek legal advice and see what this actually means for their companies; some think it might not be worthwhile to pay the tax, and would pull out of the Czech market altogether.

Czech Licensing Requirements

As of now, one of the current licensing requirements in the Czech Republic is that a company must establish a physical presence in the country. However, last year the Czech Republic had announced plans to amend its current licensing requirements to enable companies to gain a license without having to meet this requirement. This would enable more remote companies to gain licensing. The new tax is also another step in encouraging operators to obtain licensing; but the costs might just be too high and end up driving them away.

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