Prague Districts Gain Power to Self-Regulate Gambling
Autonomous gambling regulation granted to Prague by court ruling in Czech Republic
In a groundbreaking decision, the Czech Republic's Constitutional Court has given the green light for Prague's district councils to self-regulate gambling [Link]. This ruling, effective immediately, empowers each of the city's 57 districts to set their own gambling regulations, paving the way for a more diverse and locally-driven gambling landscape within Prague.
With this newfound power, district councils can shape their gambling policies by establishing regulations, enforcing restrictions, or implementing bans on poker games, roulette, blackjack, and other dice and card games.
This decision aligns with the Czech gambling regulation enacted in 2021. Live casino games are allowed in Prague under this legislation, although slot machines remain prohibited citywide. Previously, the Ministry of the Interior and the Czech Office for Competition Protection voiced concerns over the regulation's potential anti-competitive nature and lack of clarity, but these arguments were dismissed by the Constitutional Court.
The Changing Landscape of Gambling in the Czech Republic
Licensed gambling companies can offer their services in the Czech Republic, with the Ministry of Finance being responsible for issuing their licenses. The gambling market includes casino games, sports betting, lotteries, and regulatory oversight.
The Czech Republic also maintains a national self-exclusion register, which restricts gamblers exhibiting problematic behavior from the entire Czech gambling market. This system mirrors the German OASIS exclusion system.
Of the 57 Prague districts, 41 have already imposed a complete ban on live casino games. The remaining districts have set restrictions on casino opening hours. Moving forward, these decisions will reflect the unique needs and concerns of each district's residents regarding gambling.
However, Judge Milan Hulmák has expressed criticism of the decision, arguing that there is no justification for differing gambling regulations within Prague.
The gambling industry has encountered challenges as a result of a large-scale investigation by the Czech financial authority. The investigation, concluded in 2023, uncovered tax evasion for the years 2021 and 2022. A total of 540 million CZK (approximately 22 million euros) in back taxes was demanded from the gambling industry, with the affected providers also facing significant penalty payments due to false statements made to the tax authority.
Despite these challenges, the Prague City Council welcomed the Constitutional Court's ruling, viewing it as an essential step towards self-determination for individual districts and a means to better protect the population.
What regulations will each Prague district impose on blackjack, poker, roulette, and other casino-games, now that they have the power to self-regulate gambling?This decision allows Prague's district councils to set rules on casino-and-gambling activities, aligning with the Czech gambling regulation enacted in 2021.41 out of the 57 Prague districts have already imposed a complete ban on live casino games, with the remaining ones setting restrictions on their opening hours.
