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Increase in gambling taxes proposed in Czech Republic

The Finance Ministry announced plans to raise gambling taxes in Czech Republic to increase public budget. Gambling taxes in Czech Republic could soon dramatically increase. The Ministry of Finance announced this week its plans to raise gambling taxes in the country, and lotteries, live games and bingo would be the ones that would suffer the most. Currently, all gambling taxes are taxed at 23% of gaming gross revenue (GGR), except for gaming machines (35%). If passed, Czech Republic would increase gambling tax to 30% of GGR for lotteries, live games and bingo. Fixed odds betting terminals (FOBTs) would also suffer an increase, but significantly lower than other forms of gambling. FOBTs’ tax would go up from 23% to 25% of GGR. The 35% rate for gaming machines would remain the same under new plans. If successful, the proposed amendment would come into force in January 2020. “The proposed amendment to the gambling tax law divides the rate of gambling tax into three levels. This is according to the harmfulness of individual gambling in the same way as the government’s draft Gambling Tax Act of 2015,” reads the Ministry’s submission. (2019/05/06)

 
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