Decision in Czech Courts: Prague Takes Control over Gambling Legislation
Prague's Gambling Self-Regulation: A New Era Dawns
By Matthias Friess, Edited by Angela Burke, Published on: 07.05.2025, Updated on: 08.05.2025.
- Prague Districts Gain Autonomy Over Gambling Regulations
- 41 out of 57 Districts Ban Live Casino Games
- Local Self-Determination Wins Over National Laws
The Court's Decision Provides Prague with Autonomy
In a groundbreaking decision, the Czech Republic's Constitutional Court has given Prague the freedom to regulate gambling based on local needs [Link in English]. The 57 Prague districts now have the power to set their own rules, such as imposing restrictions or bans on poker games, roulette, blackjack, and other card and dice games.
This ruling aligns with the 2021 Czech gambling regulation, which permits live casino games in Prague, while prohibiting slot machines across the city. Previously, the Ministry of the Interior and the Czech Office for Competition Protection (ÚOHS) challenged these regulations, claiming they were anti-competitive and unclear. However, the Constitutional Court dismissed this appeal, asserting the regulations comply with the Czech Gambling Act of 2016.
Gambling in the Czech Republic: An Overview
For a company to legally offer gambling services in the Czech Republic, it must hold a Czech license issued by the Ministry of Finance (Ministerstvo financí České republiky) [Link in English]. The Czech Republic oversees casino games, sports betting, and lotteries. Additionally, there is a national self-exclusion register (Rejstřík vyloučených osob), a tool that helps problematic gamblers exempt themselves from the entire Czech gambling market, similar to the OASIS self-exclusion system in Germany.
Variations in Prague's Gambling Regulations
As of now, 41 out of 57 Prague districts have banned live casino games, while the remaining districts have imposed time restrictions on casino operations. To ensure the new rules reflect the needs of the population, the Constitutional Court emphasized the importance of considering the local populace's concerns regarding gambling. However, the decision has not been universally accepted, with Judge Milan Hulmák criticizing the differing gambling regulations within Prague.
Recently, there's been increased scrutiny on the gambling industry due to a financial authority investigation. This investigation has uncovered tax evasion for the years 2021 and 2022, with the gambling industry being demanded approximately 540 million CZK (around 22 million euros) in back taxes. The affected gambling providers face further penalty payments due to false statements to the tax authority, although the specific providers have not been disclosed.
A Mixed Bag: The Reaction to Prague's New Regulations
The new rules have been welcomed by the Prague city council, who see them as a significant step towards self-determination for individual districts, providing better protection for local residents. However, the decision has drawn criticism from industry groups and some legal experts, who argue that inconsistent regulations create an uneven playing field for operators.
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The Constitutional Court's Ruling: An Assessment
The Constitutional Court's decision has set a significant precedent for the gambling industry in Prague, allowing for more localized and flexible regulations to address specific community concerns.
Core Elements of the Ruling:
- Self-Regulation: Prague's cities and districts are now empowered to regulate gambling at the local level, responding to the unique challenges and preferences of each district.
- Disparity and Competition: The different regulations across various districts create a complex landscape where operators face increased compliance demands and potential market distortions.
- Support and Controversy: Local governments view the ruling as a necessary step towards addressing public health and safety concerns, while the gambling industry and legal experts argue that varying regulations can cause an uneven playing field.
Implications for Stakeholders:
- Operators: Navigating the fragmented regulatory environment requires heightened due diligence and resources to maintain compliance.
- Regulators: Local authorities face increased responsibilities, as inconsistent regulations create compliance complexities and potentially affect public trust.
- In 2025, the Czech Republic's Constitutional Court's decision granted Prague autonomy over gambling regulations, echoing the 2021 Czech gambling regulation that permits online casinos in Germany.
- This ruling has resulted in 41 out of 57 Prague districts banning live casino games, indicating a shift towards limiting gambling activities.
- As the gambling industry adapts to Prague's new regulations, operators must face increased compliance demands due to the disparity and competition created by the different regulations across various districts.
- In Prague, the local populace's concerns regarding gambling have become a key factor in the regulations, with considerations being made to provide better protection for local residents.
