Jan Řehola graduated from the law faculty of Charles University in Prague with a thesis on the legal aspects of online gambling within the EEA. In his professional career Jan’s main point of interest is gambling law, e-commerce and compliance. He was director of Czech gambling regulator within the Czech Ministry of Finance and a member of the European Commission Expert Group on online gambling. Since 2014, Jan has provided professional legal and consulting services primarily in the field of gambling.
Jan will hold a presentation with the following title: “REGULATORY UPDATE for Czech Republic: Gambling law amendments in Czech Republic – overview of the current situation in these markets?” at the 8th edition Eastern European Gaming Summit, which will be held between 23-24 November, 2015 in Sofia, Bulgaria.
EEG: There is no doubt that the gaming or gambling industry is worth tens of billions of crowns in the Czech Republic. New moves from the government seek to curb it and put it under better control. But many gambling companies say stricter regulations will just speed up the movement of most of the business online. Do you think that new regulations will improve the framework on which the Czech Republic’s online gambling currently operates?
Jan: In the Czech Republic, as elsewhere in Europe, we can see grow of the interest in online games and I believe that Czech market could be for online operators very interesting. According to official figures Czech online gambling market steadily grow by 11,4 % in 2014. It is not surprising that the biggest increase of bets is found in online sport betting.
The Czech gambling act, which is from 1990, does not reflect to this new trend and the Czech Republic necessarily needs new clear rules for online gambling, new secondary technical regulation, monitoring system and finally also new taxation system. Moreover we cannot forget, that actual Czech law infringes the principles of European law and due to this fact the Czech Republic is subject of infringement procedure.
Czech Republic officials are aware of this fact so actually preparing new law should correct this situation. Online gambling will be for the first time explicitly regulated and EU/EEA based operators will be able to obtain a licence to offer online gaming in the Czech Republic. Some guestions, in particular concrete tax rates and form of central monitoring system remain unanswered but in general it can be conclude that the first steps were made in good direction. The Czech Republic could follow the examples of the other Eastern EU states and change the existing law into the form of modern regulation which ensure the sufficient level of control of online operators in terms of protection of players, implementation of responsible gaming measures and reasonable tax duties.
EEG: There are a lot of talks that this new package of law amendments is a confirmation of a long term trend to move to a more regulated online environment? Is this package designed to push the move of gambling businesses from land-based to online?
Jan: I would not say that the aim of Czech regulator is to push the gambling business from land based to online, but online gambling has exploded in popularity in recent years so it is a general trend in gambling business to move more and more activities from land based to online area. As the results, regulators all over the world have to react to this situation and during the past few decades more and more of them tend to legalize and reglate online gambling instead of ban it. The same situation we can se nowadays also in the Czech Republic. This trend cannot be ignored.
On the other hand, when it comes to land-based business, this is in the Czech Republic very hot topic for last few years especially with connection to the right of municipalities to regulate gambling on its territory and Czech republic in the long term tends to reduce the number of gaming machines. This approach is reflected also in the new gambling act, which introduce a number of new restrictive measures to reduce the number of pathological gamblers with respect only to land-based operators.
EEG: The gaming companies though are highlighting a ruling from the European Court of Justice which dealt with Hungary’s moves to push through a clampdown on betting companies and increase taxes on them. This was seen as an infringement on their right to carry out their business and some companies are arguing that the ruling sets a precedent for the Czech Republic as well. How are the local authorities dealing with this?
Jan: I am aware that Czech authorities are familiar with this Hungarian case as well as the Czech operators who analyse it in detail and highlighted the principle, which Court of Justice of the European Union emphasized in this ruling.
It is right that Court confirmed that also gambling operators like every other entrepreneur has the right to carry out their business and in case of any interventions (also in form of taxation), state must fulfill some crucial basis principles. This is the open and very relevant question also in the Czech Republic in connection with withdrawing the valid licence for operating games of chance due to the conflict with generally binding decrees of Czech municipalities and I think that is not precluded that some Czech national course will also submit preliminary question to Court of Justice of the European Union.
If you would like to get the unique opportunity to ask all your important questions and learn first-hand details about the Czech Republic’s developments be sure to attend the Eastern European Gaming Summit at which Jan Rehola shall brief the attendees about the new developments. For 8th consecutive year on 23 – 24 November 2015, Inter Expo Center in Sofia, Bulgaria will bring together under one roof world’s leading figures and companies from the industry to present and outline current market developments and future trends with global vision and focus on the Eastern European market.
Visit the EEGS website here.
