he Czech Senate voted 42-0 in favor of the measure, with 23 abstention and as it could be seen, zero negative votes.
It is now up to President Miloš Zeman to decide whether the bill should be approved and should be signed into law. He has 30 days to put his signatureon the legal document and if this happens, the proposal could come into effect no earlier than January 1, 2017.
Under the new iGaming bill, casino games would be taxed at 35% of annual gross gaming revenue. As for lotteries and sports betting options, they would be taxed at 23%
Currently, there are only five licensed operators to be providing online gambling options within the Czech Republic’s borders.
Although Czech lawmakers have decided that now it is a good time for the country to open its iGaming market, they have proposed the implementation of tax rates that would likely not appeal to gambling operators. Under the new iGaming bill, casino games would be taxed at 35% of annual gross gaming revenue. As for lotteries and sports betting options, they would be taxed at 23%.
And here it is important to note that the standard corporate tax rate stands at 19%. As any contemporary iGaming bill, the Czech one,too, contains provisions about the protection of the vulnerable part of the population. Under the proposed legislation, a national exclusion database would be introduced and it would allow individuals to block themselves from accessing online gambling websites. The said database would also block bankrupt country residents and ones that receive financial assistance from the country from gambling online.
The way the country is to cope with unlicensed gambling operators is also another important matter to pay attention to. If the bill comes into effect, the Czech Ministry of Finance would be authorized to block unlicensed gambling websites. In addition, payments to and from such websites would be banned. There would also be regulations regarding unlawful advertising of online gambling options.