The gambling stakeholders in Czech republic wish that the state will go ahead with regulatory changes to customer and banking confirmation requirements to enable an easier market entry.
After ‘Czech AML Act’ changes in 2017 regarding the establishment of another ‘Czech Gambling Act’ the requirement for operators to establish ‘face-to-face’ client confirmations at seven thousand five hundred licensed ‘check-point’ areas was implemented by Ministry of Finance.
The strict step and 35% GGR in online casinos 23% and GGR taxes on sports betting made the Czech Republic experience the pulling out of international operators from the entire marketplace.
A group of operators like Entain Plc (initially GVC Holdings), bet265, and William Hill departed from the market saying that circumstances had made it impossible to work,’ and also said that the Ministry of Finance implemented compliance requirements that no other market in Europe found suitable.
The Ministry of Finance in Czech supported its action and said ‘face-to-face’ confirmations were necessary to meet AML concerns and duties regarding gambling transactions.
Foreign incumbents declined to apply for licenses again and the ensuing years have experienced the decline of the sports betting market in Czech, and only three domestic incumbents remained; Synot, Fortuna and Tipsport. SAZKA Group, the domestic stalwart was leading in the lottery market.
After 3 years in ‘governing segregation’ there is hope once more for the market in Czech Republic changes after the ‘5th Directive on AML’ approval, modernizing the banking and client compliance requirements.
‘5th Directive on AML’ approved the step and the Czech Republic will embrace ‘remote client verification’ steps that individual banks implement. Mainly termed as ‘bank IDs,’ the shareholders in Czech Stakeholders are hopeful that the compliance step will make the state more resilient in its challenging face-to-face confirmation requirements.
The Head of the Czech & Slovak Internet Gambling Association supported the step, saying that it showed itself to be Sweden’s efficient verification provision.
She stated, ‘I have a firm belief that this is an important move in the right direction.’
‘I pray that the recently started state analysis of the gambling regulation in Czech will lead to an easier entry to the market soon.’