Regulation of online gambling in the Czech Republic in 2025: news, challenges and recommendations

Tightening of the Gambling Act

At the same time, players must be offered the option to apply for entry into the Register of Excluded Persons (RVO) directly through this tool. The implementation of the Panic Button requires modifications to the software of online casinos – the button must be visibly available throughout the entire game (e.g., on every page or game screen) and clearly inform the player of its purpose.

Integration of the Register of Excluded Persons

The new legislation has strengthened the importance of the RVO. Operators must now allow players to submit an application for entry into the RVO (a so-called mediated application) through their interface when using the Panic Button. The Register of Excluded Persons already included, for example, persons receiving material need benefits or who are bankrupt.

As of July 2024, the circle of automatically registered persons has been expanded to include individuals who fail to pay child support (alimony). Operators must therefore continuously update their player verification systems to ensure that no excluded person can play (either online or in land-based establishments).

Opinions of the Regulator and Methodological Guidelines

The Ministry of Finance (MF) as the gambling regulator also issues interpretative opinions on the new obligations. For example, in September 2024, it published an opinion clarifying the requirements for the tool to prevent participation in a gambling game under Section 16bb (the so-called Panic Button) to prevent interpretative ambiguities.

Furthermore, in March 2024, the MF issued information on the assessment of software applications used for operating internet games. This was in response to an explicit provision in the amendment that brought mobile and web applications for gambling under the supervision of the Act. Operators must be aware that any platform (web, mobile app, etc.) through which a game is offered is subject to approval and regulation just like the game itself.

Technical Standards and Data Reporting

With the amendment taking effect, the implementing rules were also updated – for example, the technical specification of the information system for connection to the state supervision system. Following the amendment, the Ministry of Finance updated the technical requirements for the system for transmitting data on the operation of gambling games as of 1 January 2024 (related to Decree No. 10/2019 Coll. on the method of reporting and data transmission).

Operators are obliged to electronically report data on games, bets, winnings, etc., to the MF's system; the original technical specification from 2019 was repealed as of 1 July 2024 and replaced by a new one. In practice, this means that companies had to update their IT systems according to the new specification, or risk failing to meet their reporting obligations.

Tax Changes and Taxation of Winnings

The government's consolidation package also affected the taxation of gambling. The distribution of levies from online gambling was changed in favor of the state budget – revenue from internet games is no longer shared with municipalities, as online gambling has no connection to a specific municipality.

Furthermore, an amendment to the taxation of player winnings was approved: from 2024, the limit for tax-exempt winnings is reduced from CZK 1 million to CZK 50,000. For operators, this represents new obligations when paying out winnings (a higher number of winnings will be subject to withholding tax or reporting obligations to the tax administration).

It is therefore necessary to adapt internal procedures and information systems so that tax is correctly applied to winnings over CZK 50,000 in accordance with current legislation.

Online Gambling Operators – The Most Common Regulatory Problems

Obtaining and maintaining a license for an online casino in the Czech Republic is administratively demanding. The MF places emphasis on the precise definition of the subject of the license application, i.e., a detailed description of every game, bet, or lottery that the company wants to operate.

In practice, applicants have had difficulties correctly classifying new types of games, which has led to prolonging the proceedings due to corrections in applications. Therefore, in the autumn of 2023, the MF issued methodological information on defining the subject of an application for the issuance or amendment of a basic permit to prevent these problems.

It also includes an appendix with specifications for individual types of gambling games, which applicants should use. Operators must therefore carefully state whether it is, for example, a technical game (VLT/online slot), a live game, fixed-odds betting, etc., in accordance with the terminology of the Act, otherwise they risk delays or rejection of the application.

They must also prove that they meet a number of conditions – from the professional competence and integrity of the management to the technical security of the system.

Capital Adequacy

The Act requires a gambling operator to have sufficient own resources (capital) to cover liabilities and winnings. The specific minimum amount of own resources varies depending on the type of game (e.g., for internet casinos, the law sets an amount in the tens of millions of Czech crowns).

In 2022, the MF issued an interpretation on the assessment of the minimum amount of own resources pursuant to Section 6(1)(b)(4) of the Act, because in practice there were uncertainties as to what could be included and how to prove financial stability.

Operators should have sufficient capital not only when applying for a license, but throughout its validity – a drop below the set limit can lead to measures from the regulator (a call to supplement funds, in extreme cases even revocation of the permit).

Compliance with Anti-Money Laundering (AML) Rules

Online gambling companies are among the so-called obliged entities under Act No. 253/2008 Coll. on combating money laundering. In accordance with AML regulations, they must identify and verify the identity of all players, monitor suspicious transactions, and report them to the Financial Analytical Authority. Czech legislation effectively introduced full player identification as early as 2017 – no one can play without registration and identity verification.

For identity verification, tools such as BankID or Czech POINT are used. Operators often face practical questions: how to quickly and conveniently verify a player (so as not to deter the customer, but to comply with the law), how to set deposit limits for temporary accounts, or how to keep records of politically exposed persons and high-risk clients.

Strict fulfillment of AML obligations is crucial – violations (e.g., allowing an anonymous player to play, failing to report a suspicious transaction) can result not only in fines under the AML Act, but also sanctions under the Gambling Act of up to CZK 50 million.

Advertising and Promotion of Gambling

The marketing activities of online casinos are strictly regulated in the Czech Republic. The Gambling Act states that advertising for gambling must not target children and minors, must not give the impression that participation in gambling is an easy way to make a living, and must contain a clear warning (e.g., a slogan about the risk of addiction and contacts for help).

Operators often deal with how to correctly formulate advertising campaigns, bonus offers, and discounts so that they are not evaluated as prohibited enticement to play. Inappropriate advertising can lead to penalties from the regulator or other authorities (e.g., the Council for Radio and Television Broadcasting supervises television advertising, municipal ordinances can restrict outdoor advertising for gambling halls).

A typical practical problem is the promotion of "no-deposit bonuses" and other incentives – these must be presented clearly, must not conceal conditions (e.g., wagering requirements), and must not be directed at excluded persons. Corporate lawyers therefore often conduct preliminary assessments of campaigns, cooperate with marketing to set clear rules, and train business partners (affiliate websites, influencers) on the limits of gambling advertising.

Player Protection and Responsible Gaming

Consumer protection is increasingly at the forefront of the regulator's interest. Operators must allow players to set self-limiting measures – limits on bets, losses, game time, etc. – and actively prevent these limits from being exceeded.

New obligations such as the aforementioned Panic Button further strengthen responsible gaming – with one click, a player can suspend their gaming for 48 hours and consider a more permanent self-exclusion. From a compliance perspective, this is an implementation challenge: ensuring that the button is functional in every gaming environment (including mobile games and live casinos), that it immediately offers information about the consequences of being entered into the RVO, and that the system correctly "shuts down" the player in all games after it is pressed.

Operators must also regularly train customer support to be able to respond appropriately to players using self-limiting tools or showing signs of problem gambling.

Typical Sanctions and Supervision of the Gambling Market

Supervision of the gambling market in the Czech Republic is primarily carried out by the Ministry of Finance (Department 73 – Procedural Agendas and Gambling Regulation) and, in certain areas, by other institutions. The Customs Administration of the Czech Republic, for example, cooperates in combating illegal gambling – it is responsible for blocking unlicensed internet gaming sites and enforcing imposed sanctions.

Tax offices control levies from gambling games (supervision of tax obligations). The Financial Analytical Authority deals with sanctions for violations of AML rules. The Ministry of Finance also maintains a publicly accessible List of Legal Operators and a List of Unlicensed Online Games, where it publishes illegal websites that are to be blocked by internet providers.

Sanctions for Illegal Operation

Penalties for operating gambling games without a valid license are very strict. The Ministry of Finance can impose a fine of up to CZK 50 million for a single violation for the unauthorized offering of online gambling. In the years following the adoption of the new act (2017+), it has indeed imposed a number of exemplary fines on foreign entities that targeted Czech players without a license.

For example, in 2017, the ministry imposed a total of four fines on foreign lottery companies amounting to a total of CZK 115 million. By the end of 2018, the number of sanction decisions had grown to 24 and the total amount of fines reached approximately CZK 455 million.

Among those punished were well-known online betting companies based in Caribbean tax havens. However, enforceability remains a problem – many of these fines were imposed on companies outside the EU, and the state has actually collected only a fraction (in the order of hundreds of thousands of CZK). In addition to monetary sanctions, illegal operators also face being placed on a blacklist and the technical blocking of their websites from the territory of the Czech Republic.

Penalties for Licensed Operators

Holders of Czech licenses also face sanctions if they violate the conditions of the Act or the issued permit. The MF can impose fines for various failings – e.g., failure to adhere to set game limits, allowing a minor to play, failing to register a player in a timely manner, failing to submit a mandatory report, violating advertising rules, etc.

In practice, sanctions in the order of hundreds of thousands to millions of crowns have already been imposed on Czech companies that have failed to comply with their legal obligations (these cases are not always publicized, but the MF publishes them in its database of decisions).

In the event of a serious or repeated violation (e.g., repeatedly allowing an excluded person to play, or manipulating game results), the MF may go as far as to revoke the basic permit to operate gambling games. Therefore, licensed operators are paying increasing attention to internal compliance audits to prevent violations of the law.

Sanctions in Connection with AML

The sanction risks under the AML Act are also worth mentioning. The Financial Analytical Authority can impose fines for violations of anti-money laundering obligations, which for large companies can also reach multi-million crown amounts.

For example, if a casino failed to verify a player's identity for a transaction above the set limit or failed to report a suspicious deposit, it would face a sanction under Act No. 253/2008 Coll. in addition to a penalty from the MF. In recent years, both the FAA and the MF have been conducting inspections focused on how gambling companies fulfill their obligations (client verification, record-keeping, employee training).

Gambling operators thus face dual supervision – from the MF (Gambling Act) and the FAA (AML) – and must comply with both legal regimes concurrently.

Impacts on Corporate Compliance and Recommendations

Numerous legislative changes place high demands on operators in the area of corporate compliance. The first recommendation for legal departments is to continuously monitor the official interpretations and methodologies issued by the Ministry of Finance. The MF's opinions (see above) often clarify ambiguous issues and indicate the direction in which the regulator will proceed.

For example, the opinion on the Panic Button explains in detail how this function should be implemented and points out the consequences of non-compliance – from it, one can deduce what inspectors will focus on during an inspection. It is therefore recommended to use these opinions as a guide when adjusting internal rules and systems.

Technological Readiness

Legal changes in gambling are often closely linked to technical requirements. Companies should have a process in place for the timely implementation of IT changes – whether it's upgrading the system for MF data reporting, integrating new registers (RVO, population registers for identity verification), or introducing the aforementioned Panic Button.

A practical step is close cooperation between the legal and IT departments: as soon as legislation or an MF opinion introduces a new requirement, it is necessary to assess the impact on the software (e.g., modifying the gaming platform, user registration, API connection to state registers).

Dry-run testing – simulating the process of registration, self-exclusion, reporting winnings, etc. – will help identify any shortcomings before a state inspection occurs.

Strengthening Internal Policies

With each amendment, it is advisable to review internal regulations and employee manuals. For example, the introduction of the RVO means updating customer support procedures for cases where a player is on the list of excluded persons (how to inform them of the reason for the account block, etc.). New requirements for advertising or promotion should be reflected in internal marketing guidelines (e.g., ban on targeting minors, mandatory slogans in advertising).

Checklists for branches and technical departments should also include new obligations – for example, operators with land-based gambling halls should add a check on the functionality of the camera system (monitoring of the gaming area is mandatory and the MF explicitly pointed this out in 2025). The legal department should work closely with the risk management and internal control departments to ensure that new obligations are actually put into practice.

Training and Awareness Raising

The human factor is still key – therefore, it is essential to regularly train employees on amendments and rules. For example, customer support and retention team staff must know how the Panic Button works and that they are not allowed to let a player who has used it play for 48 hours, nor actively entice them back to the game. Similarly, the marketing team must understand what formulations in advertising are inadmissible.

Organizing practical compliance workshops proves effective – e.g., a simulation of an MF inspection: What would an inspector find if they came now?. This better prepares employees and reduces the company's risk of overlooking an obligation.

Proactive Communication with the Regulator

Open dialogue with the Ministry of Finance has proven to be the best practice. If an operator is unsure about a new provision, they can request an opinion or interpretation from the MF (the MF sometimes publishes answers to operators' questions in the FAQ section or issues general methodologies).

Also, when developing new gaming products, it is advisable to consult in advance whether the intended concept corresponds to the legal categories – this will prevent a situation where a game, after its launch, would be evaluated as unlicensed. Maintaining good relations with supervisory authorities, timely responses to calls for corrective action, and fulfillment of information obligations (e.g., annual activity reports, financial statements) demonstrate that the operator takes compliance seriously.

In the environment of strict gambling regulation, proactivity is better than reactivity – an investment in a robust compliance system pays off in the form of trouble-free business without sanctions and negative publicity.

In Conclusion

The legal regulation of gambling in the Czech Republic in 2025 emphasizes responsible gaming, transparency, and risk prevention. Operators of online casinos and betting games must keep pace with legislative changes and the regulator's methodological guidelines.

Although this means increased administrative demands and investments in systems, in the long run, it leads to a safer and more sustainable business in the gambling industry. With thorough preparation, a strong compliance program, and cooperation with the authorities, it is possible to operate successfully and offer games in accordance with the law, even in a strict regulatory environment.

Compliance is thus no longer perceived merely as a necessary obligation, but as a strategic advantage – companies that manage it well gain the trust of the regulator and the public.