Legal Limits and Risks of Gambling Sponsorship in Czech Sports

Are you planning to host a sporting event or are you part of a sports club seeking funding through gambling sponsorships? In this article, you will find specific answers regarding what is permitted and prohibited in the Czech Republic, the legal limits of gambling promotion at sporting events, and the potential penalties for regulatory breaches. You will understand why a seemingly simple idea can transform into a significant legal risk under Czech law.

Quick Summary

• Gambling sponsorship in the Czech Republic is subject to strict regulation: Every form of promotion must meet rigorous conditions regarding content and placement.
• Sports financing is under pressure from legislative changes: Due to ongoing discussions about tightening rules for gambling advertising in the media, sports clubs and event organizers face the risk of reduced income.
• Failure to comply with legal regulations leads to high fines: Violating gambling advertising rules can cost clubs, event organizers, and sponsors up to 5 million CZK for advertising, and in extreme cases of illegal operation, up to 50 million CZK.
• ARROWS law firm in Prague will help ensure regulatory compliance: Experts from our Czech legal team have years of experience navigating these complex legal requirements and can provide you with secure structures for sponsorship agreements.

Why sports sponsorship in the gambling industry carries legal risks

The connection between sports and gambling is not new in the Czech Republic, but the legal environment is tightening significantly. Every year, players wager hundreds of billions of crowns in gambling in the Czech Republic. Precisely because of these volumes and the associated social risks, the state closely monitors the regulation of gambling and its promotion. Supervisory authorities approach rule violations with minimal tolerance.

The practical reality is that hundreds of sports clubs, from football and ice hockey to smaller sports, rely financially on sponsorship from gambling companies. Large betting shops and operators have long-term funded professional leagues, clubs, stadiums, and individual national team representatives.

However, proposals for further restrictions on gambling advertising regularly appear in the Parliament of the Czech Republic. If significant tightening were to occur, it could complicate financing for many entities. At the same time, inspections for compliance with current legal limits are ongoing.

For sports event organizers, clubs, and sponsorship managers, this means you must perfectly understand the legal limits. Ignorance of the law is no excuse – on the contrary, it leads to substantial financial fines and reputational damage.

What exactly does Czech legislation regulate and who does it affect?

The regulation of gambling advertising in the Czech Republic is not a matter of a single law. Two main legal frameworks are combined: Act No. 186/2016 Coll., on Gambling (regulating the operation itself) and Act No. 40/1995 Coll., on the Regulation of Advertising (regulating promotion rules). Both apply to the sponsorship of sports events.

If you are a sports event organizer considering sponsorship from a gambling company, you should know who can inspect you. The Council for Radio and Television Broadcasting (RRTV) oversees advertising on television and radio, while regional trade licensing offices monitor billboards, print, and the internet. The Customs Administration of the Czech Republic primarily monitors whether illegal gambling is being promoted and whether illegal gambling operations are taking place directly on-site.

This is why it is crucial to understand what is permitted and what is not. In practice, our attorneys in Prague encounter these questions almost daily – clubs ask what they can include in the name of a competition or how large a logo can be.

Legal limits for gambling promotion at sports and events

Advertising for gambling in the Czech Republic is governed by specific rules that go beyond standard commercial advertising. If you want to work safely with gambling company sponsorships, you must understand every single rule and its practical impact.

Mandatory content for every gambling advertisement

The first fundamental rule under the Act on the Regulation of Advertising is that every advertisement for a gambling game must contain specific information. This information must be clear – meaning sufficiently large, high-contrast, and legible for the average recipient. Hiding text "below the line" or in illegible font is penalized by the control authorities.

The first mandatory statement is a notice regarding the prohibition of participation by persons under 18 years of age. The second is a warning message from the ministry, which must be stated exactly as follows: "The Ministry of Finance warns: Participation in gambling may lead to addiction!" This warning must be provided in its exact wording – you must not edit, shorten, or change the phrasing.

In practice, this means that if you have a billboard at a stadium with a betting company's logo, there must be a visible warning. If a television station broadcasts a match and a gambling company's spot appears during the broadcast, the warning must be there.

This matters to you, as an event organizer or club representative, because as the disseminator of the advertisement, you are responsible for ensuring that legal conditions are met. If a sponsor provides advertising material without the mandatory warning and you publish it, both you and the sponsor can be fined.

Absolute prohibitions in gambling promotion

In addition to mandatory content, there are absolute prohibitions that cannot be bypassed. Their violation always leads to administrative proceedings.

The prohibition on promoting unauthorized operators is fundamental. You may only promote gambling companies that hold a valid permit (license) from the Ministry of Finance of the Czech Republic to operate gambling within the territory of the Czech Republic. Promoting an illegal operator is an offense with a high fine rate.

The prohibition on targeting children and youth means that advertising must not be aimed at persons under 18. This is both a direct restriction (children must not appear in it) and an indirect restriction. If an advertisement contains elements that primarily appeal to children, it will be penalized.

At a sports event, this means that if you have sectors for families with children, you should be very cautious about the placement of aggressive gambling advertising. Similarly, logos on the jerseys of youth teams are risky and in many cases impermissible under Czech law.

The prohibition on presenting gambling as a source of income means that advertising must not create the impression that money can be easily obtained by playing. If a campaign promises a "guaranteed return" or a solution to financial problems, it is a violation of the law.

Related queries regarding advertising content and limits

1. As an organizer, can I use a gambling company in the name of a competition or league?
Yes, this is possible (e.g., Sponsor Extraliga). However, all visual communication associated with this name that meets the criteria of gambling advertising must comply with legal requirements under Czech law, including mandatory addiction warnings.

2. Can a gambling company have its logo on player jerseys?
Yes, this is common for adult teams in the Czech Republic. However, the logo and its context must comply with advertising regulation rules. Be cautious with jerseys sold to fans in children's sizes – in these cases, it is appropriate to omit the gambling sponsor's logo.

3. What should I do if a gambling operator is a sponsor, but I want to avoid the complexities of advertising?
It is possible to conclude a donation agreement or a partnership agreement where no performance in the form of advertising (distribution of logos, products) occurs. However, if the sponsor requires visibility, you automatically fall under the regime of the Czech Advertising Regulation Act.

Geographic and Media Limits for Gambling Advertising in the Czech Republic

Czech legislation and the practice of supervisory authorities distinguish between different types of media and advertising placement.

Specific Regime for Television and Radio

Broadcasting gambling advertisements on TV and radio is permitted but is subject to regulation under Act No. 231/2001 Coll. and the Advertising Regulation Act. The key restriction is the protection of minors. Advertising must not be included in programs intended for children and should not be broadcast in the immediate vicinity of such programs.

Although there is currently no strict legal time limit (watershed) in Czech law, broadcasters and advertisers must ensure that advertising does not primarily target a child audience. Discussions regarding the introduction of time windows (watersheds) are, however, a frequent political topic in the Czech Republic.

For clubs, this means that during afternoon television broadcasts, care must be taken to ensure that advertising at the stadium does not conflict with the protection of the moral development of children. Passive display on perimeter boards is usually accepted as part of the sporting scene.

Billboards, Leaflets, and Print

Outdoor advertising (billboards) is subject to supervision by regional trade licensing offices in the Czech Republic. The law does not explicitly prohibit placing a billboard near a school, but the content of the advertisement must not target youth. Placing a giant advertisement for an online casino directly opposite the entrance to a primary school may be evaluated by Czech authorities as an offense.

In the case of printed materials, the same content rules apply. It is always necessary to include a warning and a prohibition for persons under 18 years of age.

Strict Platform Rules for the Internet and Social Media

The promotion of gambling on the internet is under close scrutiny. In addition to Czech legislation, the rules of the platforms themselves (Meta, Google, TikTok) play a role. These platforms often have stricter conditions and require special account certification for gambling advertising.

If you want a gambling sponsor to promote your event on social networks, or if you are promoting them, the content must be clearly labeled. The use of influencers carries significant risk. If an influencer with a young audience promotes betting, the influencer, the sponsor, and you as the client all face potential fines under Czech law.

Related Queries on Placement and Distribution

1. Am I allowed to have a gambling sponsor on player jerseys if they are children (U19/U15)?
We strongly advise against this. Placing gambling advertisements on the jerseys of persons under 18, or a team perceived as a youth team, is in direct conflict with the prohibition on targeting advertising at minors in the Czech Republic.

2. Can I promote a gambling sponsor in a publication intended for fans?
Yes, provided the publication is not primarily intended for children (e.g., a children's supplement) and if the advertisement contains all legally required warnings.

3. What if a gambling company rents a booth at my event?
The booth is a place of promotion. If player registration or betting takes place there (e.g., via tablets), it must be ensured that persons under 18 years of age do not participate in the process.

How Sponsorship Agreements in Gambling and Sports are Legally Structured

One of the most common mistakes seen by our attorneys in Prague at ARROWS is the underestimation of contractual documentation. On paper, it looks simple – money for a logo. However, the reality is legally more complex under Czech commercial law.

Legal and Tax Difference Between Sponsorship and a Gift

Sponsorship is an advertising relationship. The sponsor provides funding and receives consideration in return – advertising. For the sponsor, this is an advertising expense; for the club, it is taxable advertising income. Here, it is necessary to strictly adhere to the Czech Advertising Regulation Act.

A gift is a gratuitous performance. If a gambling company donates money to a club for sports development and does not want consideration in return, it is a gift. This is possible for gambling companies, but less common in practice as they seek a marketing effect.

Requirements for a Legally Secure Sponsorship Agreement

A high-quality sponsorship agreement in the gambling sector must include the identification of the licensed entity. Ensure you are signing the contract with an entity that holds a valid Czech license or its authorized marketing representative.

Furthermore, the contract must include a guarantee of legal compliance. The sponsor must commit that the provided materials (banners, graphics) comply with Act No. 40/1995 Coll.

Liability for damages is another key point. The contract should include a provision stating that if the club receives a fine due to an error in the materials provided by the sponsor, the sponsor will cover this damage.

The club should also have the right to refuse performance. It must be possible to refuse to place an advertisement that, in the club's opinion, would violate Czech law, such as content inappropriate for children.

Termination upon loss of license is an essential safeguard. If the sponsor loses their license from the Czech Ministry of Finance, the contract should allow for immediate termination of cooperation so that you do not promote an illegal operator.

In the case of mixed clubs, the protection of minors is mandatory. The contract must clearly define that advertising will not be placed on youth jerseys or at events for children.

Risks and Sanctions for Violating Rules – What Exactly Do You Face?

According to the Czech Advertising Regulation Act, violations of the rules (missing warnings, targeting youth) can result in a fine of up to CZK 2,000,000. If the advertisement seriously targets children, the fine can rise to CZK 5,000,000.

Even higher sanctions, up to CZK 50,000,000, are possible if your activity is reclassified from advertising to the unauthorized operation of gambling.

As the disseminator of the advertisement (club, organizer), you are liable jointly with the advertiser. The Czech supervisory authority can choose whom to fine, and they often fine both parties.

Further Consequences

In addition to fines, there is a risk of reputational damage, loss of subsidies, and, in extreme cases, the criminal liability of statutory bodies if there is intentional endangerment of the moral development of youth under the Czech legal system.

Risks and Sanctions	How ARROWS (office@arws.cz) assists
Fine for distributing advertising without a warning: Up to 2 million (or 5 million) CZK.	We will review your advertising visuals and contracts in advance to ensure they contain all legal requirements under Czech law.
Fine for advertising targeting minors: Up to 5 million CZK.	Our Prague-based attorneys will help set internal club rules so that advertising is strictly separated from youth activities.
Liability for breach by a sponsor: Fines can be imposed on both the club and the organizer.	We will draft a contract that transfers liability and recourse to the sponsor to the maximum extent possible under the Czech legal system.
Promotion of illegal gambling: High fines and criminal liability.	We will verify if your potential partner holds a valid license for the Czech market.
Administrative proceedings: Stress and defense costs.	We will represent you before the Trade Licensing Office, the RRTV (Council for Radio and Television Broadcasting), or the Customs Administration to minimize the impact.

Legislative changes and the future of gambling sponsorship in the Czech Republic

The legal environment is not static. Tightening of rules is regularly discussed in the Czech Chamber of Deputies and at the EU level.

Pressure to restrict advertising

There are political initiatives aimed at banning or significantly restricting gambling advertising during daytime hours or completely banning sponsorship on sports jerseys. While current Czech legislation allows sponsorship under clear conditions, it is wise to monitor developments.

If you are planning long-term cooperation, your contract should include a so-called legislative clause. Without this clause, you may find yourself in a situation where you cannot fulfill advertising obligations, yet the sponsor enforces penalties.

International context

Trends from abroad (Spain, Belgium, Italy) point toward a gradual ban on betting shop logos on jerseys. Although the Czech Republic is not yet following this path, recommendations from addictologists and the WHO are moving in this direction. Diversifying the sponsorship portfolio is thus a strategic necessity for clubs.

Real-life situations and their solutions

Case 1: The club and the missing legislative clause

A hockey club had a long-term contract with a general partner. During the year, there was a partial change in the interpretation of rules by the Czech supervisory authority regarding the placement of advertising in TV broadcasts. The club had to withdraw the advertisement. The sponsor refused to pay because the club "failed to provide the performance."

The solution lies in a contract revision and the addition of a clause regarding a change in circumstances specifically for gambling legislation.

Case 2: Events and social media without warnings

A tournament organizer shared a partner's graphic on Instagram without the mandatory warning text. The post was reported by a competitor to the Regional Trade Licensing Office, and administrative offense proceedings were initiated.

With legal representation in Czech courts and offices, it is often possible to achieve a reduction of the fine to the lower limit, but prevention would have cost a fraction of the expense.

Case 3: Youth and billboards

A club placed a betting shop billboard directly next to the entrance of the youth training field. An inspection evaluated the placement as targeting minors.

The necessary step is to relocate advertising spaces to adult sectors or VIP zone areas.

How to ensure the legal security of your sponsorship

Audit and Compliance

We recommend having a legal audit of sponsorship contracts and advertising visuals. Our Czech legal team will check whether your contracts contain necessary protective clauses and whether your graphics meet the legal requirements for the size and placement of warnings.

Team training

The marketing team should know the basics of the Czech Act on the Regulation of Advertising. ARROWS offers training for clubs and agencies to prevent unnecessary mistakes due to lack of knowledge.

Crisis management

Have a procedure ready in case of an inspection. Knowing who to call and how to respond to an authority's request is crucial. ARROWS law firm in Prague is ready to provide immediate legal assistance.

Conclusion

Sports sponsorship in combination with gambling is a legitimate but strictly regulated discipline in the Czech Republic. The opportunities for funding are great, but so are the risks. A mistake in graphics or in a contract can mean a fine in the millions of crowns.

Attorneys from ARROWS law firm have been dedicated to this field for a long time. We know how to set up contracts so they are safe for both parties, and we know how to communicate with Czech supervisory authorities.

In our portfolio, we have hundreds of corporate clients and numerous sports entities. We pride ourselves on expertise and a practical approach. Do you need advice on this matter? Contact us at office@arws.cz.

FAQ – Most frequent legal questions regarding events and sports sponsorship in the gambling sector

1. Can I have a gambling sponsor if my event also has children's categories?
Yes, but with restrictions. Gambling advertising must not target children. You must ensure that advertising is not on children's jerseys, is not part of prizes for children, and ideally is not in the immediate vicinity of sports facilities reserved exclusively for children's categories.

2. What warnings must be in a gambling sponsor's advertisement?
It must include (1) a statement regarding the prohibition of participation by persons under 18 and (2) the exact wording: "The Ministry of Finance warns: Participation in gambling may lead to addiction!" The text must be legible and clear.

3. What if a gambling sponsor wants promotion on the internet and social media?
The content must comply with Czech legislation and the rules of the given network. We recommend having visuals and texts checked by a lawyer before publication to avoid account blocking or fines from authorities.

4. If an inspection occurs, who pays the fine?
The Czech Act on the Regulation of Advertising allows for fining the advertiser (sponsor), the processor (agency), and the disseminator (club/organizer). The authority often initiates proceedings against all parties. Therefore, it is crucial to have liability well-defined in the contract.

5. Can gambling companies offer bets directly at my event?
Only if they have the appropriate Czech permit and fulfill all legal conditions (age verification, registration). If it were an illegal stand without a license, the organizer risks prosecution for aiding illegal gambling.

6. What if the law changes and advertising is banned?
Your contract should have a clause for this eventuality so that you can terminate or adjust the cooperation without penalties. If you do not have one, contact ARROWS law firm in Prague for a contract review.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the subject matter. While we strive for maximum accuracy, Czech legislation and its interpretation are subject to change. To verify the current wording of regulations and their application to your specific situation, it is essential to contact our Prague-based law firm, ARROWS, directly (office@arws.cz). 

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