Prague secures authority over local gambling regulations following court decision in the Czech Republic.
The Czech Constitutional Court has granted Prague the authority to self-regulate gambling within its 57 districts, boosting local autonomy and addiction prevention efforts.
In a landmark ruling, all districts are now empowered to implement customs tailored to their unique needs, allowing for prevalent bans on live casino games. At present, 41 districts have imposed such prohibitions, with the remaining districts imposing restrictions on casino opening hours.
The decision reinforces the Czech gambling regulation of 2021, permitting the legal operation of live casino games in Prague while banning slot machines citywide.
Initially, the Ministry of the Interior and the Czech Office for Competition Protection argued these regulations were anti-competitive and lacked clarity. However, the Constitutional Court has since dismissed these appeals, affirming the regulations comply with the 2016 Czech Gambling Act.
Casinos in the Czech Republic must hold a Czech license issued by the Ministry of Finance to operate legally, with offerings including casino games, sports betting, and lotteries. Additionally, a national self-exclusion register operates in conjunction with Germany's OASIS blocking system, enabling those with problematic gambling behavior to be excluded from the Czech gambling market.
Prague's new regulations take local concerns into account, allowing for individual decisions that cater to the specific needs of each district. Notably, judge Milan Hulmák expressed reservations, questioning whether varying gambling regulations within Prague are justified.
The gambling industry is currently under investigation for tax evasion, with the Czech financial authority seeking nearly 540 million CZK (approximately 22 million Euros) in underpaid taxes from unspecified providers for the years 2021 and 2022. Conversely, the Prague city council embraces the ruling, acknowledging its value in furthering self-determination for individual districts while bolstering protection for the population.
Self-regulation by local districts empowers municipalities to shape the gambling landscape in their territories, enabling a balance between economic incentives (via tax revenue sharing) and public health priorities while ensuring regulatory and tax controls remain robust and responsive to local needs.
What about the gambling regulations within Prague's districts will be different now that self-regulation is allowed? Casino-and-gambling districts may implement prevalent bans on live casino-games, like the 41 districts that have already done so, due to the increased local autonomy granted by the Czech Constitutional Court.
