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

Recently, significant amendments to Act No. 186/2016 Coll., on gambling, have come into force, in particular the amendment made by Act No. 349/2023 Coll. (the so-called consolidation package of public finances). This amendment brought a number of changes to the regulation of gambling from 1 January 2024 with effects until 2025.

Tightening of the Gambling Act

From 1 July 2024, online casino (internet gaming) operators are now obliged to offer players a "Panic Button", a means of preventing participation in the game, which allows the player to immediately exclude himself from the game and blocks the possibility of betting with the operator for 48 hours.

At the same time, the player must be offered directly through this tool to apply for registration in the Register of Excluded Persons (RVO), i.e. the register of persons excluded from gambling. The implementation of the Panic Button requires modifications to the online casino software - the button must be visibly available throughout the game (e.g. on every page or game screen) and clearly inform the player of its purpose.

Integration of the Exclusion Register

The new legislation has strengthened the importance of RVOs. Operators must now allow players to submit a request for RVO entry via their interface (called a mediated request) using the Panic Button. The Register of Excluded Persons already includes, for example, persons in material need or bankruptcy.

As of July 2024, the range of automatically enrolled persons has been extended to include non-payers of maintenance (alimony). Operators must therefore continuously update their player verification systems to ensure that no excluded person can play (online or in brick-and-mortar establishments).

Regulator's opinions and methodological guidelines

The Ministry of Finance (MoF), 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 means to prevent participation in gambling under Section 16bb (the so-called Panic Button) in order to prevent interpretative ambiguities . ​

Furthermore, in March 2024, the MoF issued information on the assessment of software applications used for the operation of internet games. This was in response to an explicit amendment in the amendment that brought mobile and web-based gambling applications under the supervision of the law. Operators must reckon that any platform (website, mobile app, etc.) through which a game is offered is subject to approval and regulation in the same way as the game itself.

Technical standards and data reporting

With the amendment, the implementing rules were also updated - for example, the technical specification of the information system for connection to the state surveillance system. Following the amendment, the Ministry of Finance updated the technical requirements for the system for the transmission of data on gambling operations as of 1 January 2024 (related to Decree No. 10/2019 Coll. on the method of notification and data transmission).

Operators are required to electronically report data on games, bets, winnings, etc. to the MF system; the original 2019 technical specification was repealed as of 1 July 2024 and replaced by a new one. In practice, this meant that companies had to update their IT systems 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 gambling taxation. There has been a change in the distribution of online gambling levies in favour of the state budget - now revenues from internet gambling are not shared by municipalities, as online gambling is not linked to a specific municipality.

In addition, a modification of the taxation of players' winnings was approved: from 2024, the limit for tax exemption of winnings is reduced from CZK 1 million to CZK 50,000. For operators, this means new obligations when paying out winnings (a higher number of winnings will be subject to withholding tax or reporting obligations to the tax administration).

Therefore, it is necessary to adapt internal procedures and information systems so that for winnings over 50 thousand CZK, it is necessary to adapt the internal procedures and information systems so that the winnings over 50 thousand CZK. The tax is correctly applied according to the current legislation.

Online gambling operators - the most common regulatory issues

Licensing and permitting process

Obtaining and maintaining an online casino licence in the Czech Republic is administratively challenging. The Ministry of Finance emphasises the precise definition of the subject of the licence application, i.e. a detailed description of each game, bet or lottery that the company wants to operate.

In practice, applicants have had difficulty in correctly classifying new types of games, which has led to prolonged proceedings due to corrections to applications. Therefore, in autumn 2023, the MoF issued methodological information on the definition of the subject matter of an application for the issue or amendment of a basic permit in order to prevent such problems.

An appendix with specifications for each type of gambling that applicants should use is included. Operators must therefore carefully indicate whether the gambling is, for example, a technical game (VLT/online machine), live game, odds betting etc., in accordance with the terminology of the Act, or risk delays or refusal of the application.

It must also demonstrate compliance with a range of conditions - from the professional competence and integrity of management to the technical security of the system.

Capital adequacy

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

In 2022, the MoF issued an interpretation on the assessment of the minimum amount of own resources under Section 6(1)(b)(4) of the Act​ , as in practice there was confusion as to what all could be counted and how to demonstrate financial stability.

Operators should have sufficient capital not only when applying for a licence, but throughout its validity - a fall below the set limit may lead to action by the regulator (a call for replenishment of funds, in extreme cases even withdrawal of the licence).

Anti-Money Laundering (AML) compliance

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

For identity verification, e.g. bank identity or Czech POINT is used. Operators are often faced with practical issues: how to verify players quickly and conveniently (not to discourage customers 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.

Consistent compliance with AML obligations is key - violations (e.g. allowing an anonymous player to play, failure to report a suspicious transaction) are punishable not only by fines under the AML Act, but also by penalties under the Gambling Act of up to CZK 50 million.

Advertising and promotion of gambling

Marketing activities of online casinos are strictly regulated in the Czech Republic. The Gambling Act stipulates that gambling advertisements must not target children and minors, must not give the impression that it is easy to make a profit by gambling, and must contain clear warnings (e.g. a slogan about the risk of addiction and contacts for help).

Operators often struggle with how to properly formulate advertising campaigns, bonus offers and discounts so that they are not seen as an unauthorised enticement to play. Inappropriate advertising may be subject to penalties from the regulator or other authorities (e.g., the Broadcasting Council oversees television advertising, municipal ordinances may restrict outdoor advertising for gaming facilities).

A typical problem in practice is the promotion of "no-deposit bonuses" and other incentives - these must be presented clearly, must not conceal conditions (e.g. the requirement to opt-in) and must not target excluded persons. Therefore, in-house lawyers often conduct preliminary assessments of campaigns, work with marketing to set clear rules and train business partners (affiliate sites, influencers) on the boundaries of gambling advertising.

Player protection and responsible gaming

Consumer protection is increasingly at the forefront of the regulator's mind. Operators must allow players to set self-limiting measures - betting limits, losing limits, time limits for play, etc. and actively prevent the "stretching" of these limits.

New responsibilities like the aforementioned Panic Button further reinforce responsible play - with one click, a player can pause their play for 48 hours and consider a more permanent self-exclusion. From a compliance perspective, this is an implementation challenge: to ensure that the button is functional in every gaming environment (including mobile games and live casinos), that it also offers immediate information about the consequences of enrolling in RVO, and that the system properly "shuts down" players in all games when pressed.

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

Who to contact:

Typical sanctions and supervision of the gambling market

Supervisory bodies

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 unauthorised internet gambling sites and enforcing the penalties imposed.

The tax authorities control gambling levies (supervision of tax obligations). The Financial Analysis Office deals with penalties for breaches of AML rules. The Ministry of Finance also maintains a publicly accessible List of Legal Operators and a List of Unlicensed Internet Gambling, where it publishes illegal sites to be blocked by Internet providers.

Penalties for illegal operation

The penalties for gambling without a valid licence are very strict. The Ministry of Finance can impose a fine of up to CZK 50 million per violation for unauthorised offering of online gambling. Indeed, in the years following the adoption of the new law (2017+), it has issued a number of exemplary fines to foreign entities targeting unlicensed Czech players.

For example, in 2017, the Ministry imposed a total of four fines on foreign lottery companies in the aggregate amount of CZK 115 million. By the end of 2018, the number of sanctioning decisions had increased to 24 and the total fines reached approximately CZK 455 million.​ .

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

Penalties for licensed operators

Czech licence holders also face sanctions if they violate the terms of the law or the issued permit. The MoF can impose fines for various misconduct - e.g. failure to comply with the set game limits, allowing a minor to play, failure to register a player on time, failure to submit a mandatory report, violation of advertising rules, etc.

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

If there is a serious or repeated violation (e.g. repeatedly allowing an excluded person to play, or manipulating the results of a game), the MF may proceed up to the withdrawal of the basic gambling licence. Therefore, licensed operators are paying increasing attention to internal compliance audits to prevent breaches of the law.

AML-related sanctions

It is also worth mentioning the penalty risks under the AML Act. The Financial Analysis Authority can impose fines for breaches of AML obligations, which can also reach multi-million dollar amounts for large companies.

For example, if the casino fails to verify the player's identity for a transaction above the set limit or fails to report a suspicious deposit, it may be sanctioned under Act No. 253/2008 Coll. in addition to the penalty from the Ministry of Finance. In recent years, both the FAU and the MoF have carried out inspections focusing on how gambling companies fulfil their obligations (client verification, record keeping, staff training).

Gambling operators thus face dual supervision - by the MoF (Gambling Act) and the FAU (AML) - and must comply with both legal regimes simultaneously.

Impact on corporate compliance and recommendations

Adaptation of internal processes

Numerous legislative changes place high demands on operators in the area of corporate compliance. The first recommendation for the legal department is to continuously follow the official interpretations and methodologies issued by the Ministry of Finance. MoF opinions (see above) often clarify unclear issues and indicate the direction the regulator will take.

For example, the opinion on the Panic Button explains in detail how this feature should be implemented and warns of the consequences of non-compliance - it shows what inspectors will look for during an inspection. It is therefore recommended to use these opinions as a guide when modifying internal rules and systems.

Technological readiness

Legal changes in gambling tend to be closely linked to technical requirements. Companies should have a process in place to implement IT changes in a timely manner - whether it is system upgrades for MF data reporting, the inclusion of new registers (RVO, population registers for identity verification) or the introduction of the aforementioned Panic Button.

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

Mock testing - simulating the process of registration, self-exclusion, reporting winnings, etc. - will help uncover potential deficiencies before the state's scrutiny.

Strengthening internal guidelines

With each amendment, it is advisable to revise internal regulations and employee manuals. For example, the introduction of RVO means updating customer support procedures in case a player finds himself on the exclusion list (how to tell him the reason for blocking his account, etc.). New requirements for advertising or promotion should be written into internal marketing guidelines (e.g. no targeting of minors, mandatory slogans in advertising).

The checklists for branches and technical departments should include new obligations - for example, operators with brick-and-mortar gambling halls should add a check of the functionality of the camera system (monitoring of the gaming area is mandatory and the MoF explicitly warned about it in 2025). The legal department should work closely with the risk management and internal control departments to ensure that the new obligations are actually translated into practice.

Training and awareness raising

The human factor is still key - that's why it's essential to regularly train employees on the amendments and rules. For example, customer support and retention staff need to know how the Panic Button works and that the player who used it must not be allowed to play for 48 hours or actively enticed back to play. Similarly, the marketing team must understand what wording in advertising is unacceptable.

It is useful to organise practical workshops on compliance - e.g. a simulation of an MF audit: what would the auditor find if he came in now? This will better prepare employees and reduce the risk of the company failing to comply.

Proactive communication with the regulator

Open dialogue with the Ministry of Finance appears to be the best practice. If an operator is unsure about a new provision, it can use the opportunity to ask the MoF for an opinion or interpretation (the MoF sometimes publishes answers to operators' questions in the FAQ section or issues general methodologies).

Also, when developing new game products, it is advisable to consult in advance whether the intended concept fits the legal categories - this will avoid a situation where the game is judged to be unauthorised after launch. Maintaining good relations with supervisory authorities, responding to corrective actions in a timely manner and fulfilling information obligations (e.g. annual activity reports, financial statements) show that the operator takes compliance seriously.

In an environment of strict gambling regulation, proactivity is better than reactivity - investing in a robust compliance system pays off in the form of a smooth business without penalties and negative publicity.

Conclusion

Gambling legislation in the Czech Republic in 2025 emphasises responsible gambling, transparency and risk prevention. Online casino and betting operators must keep up with legislative changes and the regulator's guidelines.

Although this means increased administrative requirements and investment in systems, in the long term it leads to a safer and more sustainable gambling industry.

With thorough preparation, a strong compliance program and cooperation with the authorities, it is possible to operate successfully and offer legally compliant games even in a strict regulatory environment.

Compliance is no longer seen as a necessary obligation, but as a strategic advantage - companies that manage it gain the trust of the regulator and the public.

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