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Czech authorities recover $22.71M in unpaid gambling taxes
The Czech tax authorities have uncovered CZK 540 million ($22.71 million) in unpaid taxes from gambling businesses after auditing local gambling licenses for 2021–2022.
Using advanced data analysis, investigators spotted suspicious financial activity and irregular player behavior in casinos. This led to an extra tax bill of CZK 340 million ($14.30 million) and additional financial penalties for misreported fees and commissions.
Otakar Sladkovský, Director of the Specialized Tax Office, commented:
“Our goal is clear—to protect fair entrepreneurs and ensure that everyone pays taxes according to the same rules. This case is proof that modern analytical tools and the careful work of our inspectors bring concrete results.”
New, stricter rules for the Czech gambling industry
As part of the country’s ongoing efforts to have a strong and competitive gambling market, the country introduces new, tougher regulations:
• Higher taxes: Most gambling activities (except lotteries and land-based casinos) now face a 30% tax on gross gaming revenue (GGR), instead of 23%. Online and land-based casinos remain at 35%.
• Lower tax-free winnings: Players must now pay taxes on winnings of more than CZK 50,000 (€2,000), down from CZK 1 million (€40,000). This rule took effect on February 15, 2024.
• Easier licensing for EU operators: The process for foreign EU-based businesses to get a Czech gambling license has been simplified.
Sladkovský said:
“Gambling is a specific industry with high tax revenue, and therefore, it is important for us to minimize the space for illegal practices through systematic activities. This success shows that our efforts have a real impact on market fairness and tax collection.”
The Czech tax office has promised stricter monitoring to prevent further tax evasion and unregulated gambling activity.
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