Czech Republic gambling website censorship has now become a reality following the new Gambling Act which was passed into law on 1st January 2017.
The Constitutional Court of the Czech Republic issued a decision on 22nd February to allow illegal gambling websites to be blocked. Website censoring was seen as highly controversial move. It has been introduced to block the ISP addresses of gambling organisations who are not licensed in the Czech Republic.
After a lot of wrangling, foreign online gambling operators are to be banned under new Czech Republic gambling laws unless they operate from within the Czech Republic.
Czech Republic gambling laws to ban unlicensed foreign operators
Gambling has always been a popular pastime in the Czech Republic. Regulation has been very difficult with some notable actions required to prevent fraud and unlicensed operators. The most recent change to the gambling laws is due to take effect on 1st January 2017. From then, online gambling operators will be banned unless they have obtained a State Gambling Licence and they are based in the Czech Republic for tax purposes.
Tax rates are currently 20% on gross wins for operators. That is on top of a Corporation tax rate of 19%. Those tax rates are some of the highest in the EU so the effect could be quite dramatic. William Hill has already announced that it will longer operate in the Czech Republic, most others are expected to follow to comply with new legislation.