In our law firm, we have a team of experts specialized in legal advisory in the area of the hazard and lottery laws. We provide services in this field of law to local as well as foreign clients, in the initiative phase when establishing such business as well as representing already running businesses. We represent our clients in front of public authorities, courts or general contractual relationships.
Stricter after 2017
Starting 1 January 2017, completely new law regulating the hazard and gambling brought many significant changes to this area, mainly in the form of stricter regulation than before. New tools were introduced that shall limit the negative impacts on society, protection of gamesters and their environment, but also tax rise and more possibilities of municipalities to further regulate the hazard in their area. The new law was also reaction to the market opening for entities registered abroad as well as to the escalation of internet use and online gambling.
The so called hazard games, gambling and lotteries are therefore under strict regulation, in the Czech Republic. It is prudent and administratively demanding process to establish a gambling business in the Czech Republic, with many quite particular requirements. Our specialists are also familiar with related regulation of the European Union. We provide legal assistance to clients from Gibraltar in connection with the Brexit, too.
The licensing challenges
Our services are dominantly in the area of licensing and registration proceedings of the hazard business in the Czech Republic, in front of the Finance Ministry, the municipality authorities respectively. Often, our domestic and international clients approach us already in the planning phase to inquire on the choice of most suitable legal form of the planned hazard business. The law is not clear in this respect.
A legal entity that applies for the hazard license has to fulfil many strict criteria on its internal structure. One of them is for example the requirement for the organizational structure with transparent and coherent specification. We will advise you what this actually means and how to prove its fulfilment. The law requires such an entity to have a control body; and there are many other requirements that have to be documented in a standard manner for the licensing purposes to the Finance Ministry.
Trustworthy and transparent
Fulfilling all the requirements for the legal structure of the entity is only the beginning of the long way to go before all is set for the application. It is necessary to provide financing to the entity that is trustworthy and transparent. Our clients appreciate our assistance a lot when it comes to document their own financial sources and to prove in a “trustworthy manner the transparent and admissible origin of the financial sources” as the law requires.
Related to this is also the provision of a security to the Finance Ministry, the type and amount of the security depending on the gambling activities. On top of these, we provide legal advisory regarding the issue of computer server placement, and its related contractual documentation necessary for the licensing procedure.
We also assure preparation of all other necessary documentation for the registration processes including the game concepts and rules assessment. For this purpose, we work in stable cooperation with the best official court-appointed experts in hazards.
We provide especially the following legal services in the area of the hazards:
- Complex legal advisory in the area of hazard and lottery;
- Representing for the licensing and registration process of a gambling business;
- Advisory on fulfilment of the legal requirements on legal structure with transparent and coherent specification;
- Advisory on fulfilment of the legal requirements on proving in a trustworthy manner the transparent and admissible origin of the financial sources;
- contractual documentation on the server placement for the licensing purposes;
- Representation in front of supervisory authorities;
- Advisory on the previously valid hazard laws, act no. 202/1991Col.