Czech Republic Expected to Hike Gambling Tax
PRAGUE, Czech Republic (March 2, 2023) — The Ministry of Finance has signalled that it intends to bring in more revenue from gambling.
The Ministry of Finance seems intent on seeking more revenue from the gambling sector, having told the media that it will implement tax changes in the sector.
Finance Minister Zbyněk Stanjura is in the process of defining measures to deliver savings of Kč 70bn in the country’s budget.
The Czech gambling sector is currently estimated to generate Kč 9bn per year in taxes, but Stanjura aims to increase that contribution to Kč 1bn as the government seeks ways to keep the deficit at Kč 295bn.
Back in 2020, the government went ahead with the introduction of a tiered tax on gross gaming revenue, which ranges from 23-to-35 per cent.
Ahead of that move, which applies to allow licensed products, from bingo to sports betting, drove international operators such as William Hill and GVC Holdings (now Entain) to leave the market.
The exit of foreign operators left the Czech gambling sector the domain of local operators of Fortuna Entertainment and TipSport in sports betting and Sazka (Allwyn) for the lottery.
SOURCE: Prague Morning.