Czech Republic opts for two-tiered tax rate; Fortuna’s turnover up, profits down

The Czech Republic’s latest plan to revise its gambling tax regime has recommended a lower tax on sports betting than on casino products.

For some time now, the Czech government has been talking about boosting its blanket 20% tax on all gambling revenue. This week, Czech media outlet Hospodarske Noviny reported that politicians had approved a plan to impose a 23% tax on sports betting and a 28% tax on slots, casino games and lotteries. Land-based slots operators would also pay a daily fee of 110 crowns (US $4.50) per machine, twice the current rate.

The new regime would apply equally to both online and land-based gambling. The Czech Republic hasn’t yet rolled out the welcome mat for international online operators, but the plan is to begin the licensing process when the new regime kicks in next year.

The proposal must still pass a second reading in Parliament, which isn’t expected to happen for a few weeks. The possibility remains that politicians will choose to implement the 25% tax on all forms of gambling originally proposed by the Ministry of Finance.