Czech Gambling Sector Faces Major Discrepancies in Black Market Data

Disputed Black Market Figures

CELNI SPRAVA’s latest report estimates that unlicensed gambling accounted for just 5 per cent of the total CZK 54bn (€2.1bn) betting volume in the Czech Republic in 2022.

However, the IPRH has contested this figure, arguing that its own research suggests that at least 30 per cent of the gambling market is driven by unlicensed operators.

Jan Řehola, founder and director of IPRH, claims that unlicensed land-based gambling alone is costing the country up to CZK 2.1bn (€85m) annually.

He emphasized the significant actions taken by CELNI SPRAVA against illegal gambling venues, noting that the agency has targeted nearly 1,300 unlicensed land-based casinos over the past six years.

In contrast, the number of licensed venues has fallen to just 707, highlighting the growing challenge of combating illegal gambling.

The Rise of Unlicensed Online Gambling

The IPRH believes that the problem of unlicensed gambling is exacerbated by the shift towards online platforms.

A survey by the Poker and Odds Players Association revealed that up to 40 per cent of players may be using illegal online operators, often without realizing it.

The IPRH has criticized CELNI SPRAVA for only tracking websites that are available in the Czech language, pointing out that many players access international gambling sites that operate in other languages, bypassing local regulations.

Impact of Gambling Reforms

The IPRH also highlighted how gambling reforms introduced in 2017 may have inadvertently fueled the growth of unlicensed operators.

These reforms increased the tax rate and imposed strict regulations, including mandatory in-person customer verification at authorized physical venues for online gambling participation.

As a result, several large international operators exited the Czech market, leaving only 11 active operators by 2023, with most of them being domestic businesses.

Calls for Further Reform

The IPRH is urging the Czech government to introduce new reforms to tackle the increasing presence of unlicensed gambling operators.

The body believes that a more comprehensive approach is needed to address the gaps in regulation, particularly in the online gambling sector, to protect consumers and ensure a fair and regulated market.