Czech Republic

EU regulations are among the strictest in terms of supervision and are fairly expensive within the compliance profile. The Czech Republic is an excellent example of a complex system with high credibility. If an operator plans to run iGaming “properly” (local approval, open advertising, and bank-friendly operations), this is a real option. 

Order a turnkey casino with the Czech licence. Buy all necessary software to ensure smooth platform operation and avoid legal issues within the chosen work area.

Regulatory Landscape

Czech gambling is governed primarily by Act No. 186/2016 Coll., which took effect in 2017 and modernised the framework. This decree defines the format broadly as games of chance, betting, or lotteries where a player stakes something of value on an uncertain outcome.

The key gatekeeper is the Ministry of Finance (via its oversight function), and it can issue, supervise, suspend, or revoke permissions. For land-based venues, municipalities also matter because local authorities handle location-level approvals.

After the core legal framework, the next practical point is game classification. The law does not allow creative categories. A product must fit a defined type, otherwise it is simply not permitted.

What the legislation groups gambling into:

• lotteries (including raffles/tombolas);
• odds betting (fixed sports and event wagering);
• totalisator (for example, horse racing pools);
• Bingo;
• technical activities (slots and RNG-style content, including online);
• live games (table formats);
• raffles and small-scale tournaments (for example, poker events).

What iGaming Looks Like in Czechia

Remote gambling is a core part of the market. Since 2017, foreign companies incorporated in the EU/EEA can apply, rather than being limited to Czech-only structures (as long as they establish the required presence and satisfy suitability checks).

The product scope is also clear. Most defined gambling types can be offered online, but raffles and small tournaments sit outside the usual remote route. In other words, remote coverage is broad, yet not universal.

From 2024, the Czech system moved to a two-layer structure that reduces repeated paperwork when an operator adds more verticals.

The logic is simple:

1. Initial licence (company-level permit). This comes first and checks general suitability (financial stability, integrity, background, and similar “fitness” criteria). It can be granted without a fixed statutory expiry, which is the whole point. It stops re-checking the same corporate pack for every new product.
2. Basic licence (game-type approval). Once the umbrella permit exists, the operator applies for a specific vertical. Each approval covers one category and can run for up to 6 years, with the review aimed at the product rules and technical setup rather than revalidating the whole business again.

A Czech authorisation is not only paperwork. The technical and compliance layer is heavy, and the regulator expects visibility and control.

An iGaming brand should be ready for the following operational realities:

• software and game/system reviews, with possible independent testing;
• continuous AML/KYC work, not “checkbox onboarding”;
• mandatory record-keeping for audits and tax control;
• a technical setup that supports regulator access to transactional oversight (via the local monitoring approach).

Acquisition Process

The Czech route is not mysterious, but it is demanding. Planning needs to start from the corporate structure and capital, not from the launch date.

A typical remote licensing path:

1. Set up the applicant structure (a Czech entity or an EU/EEA company with an acceptable setup for applying). Many groups use a local subsidiary to reduce friction with authorities.
2. Build the documentation pack (corporate records, relevant-person details, clean-status evidence). The proof that the business and key individuals should have no disqualifying debts or convictions.
3. Secure the economic surety. This step is not optional, and it is where budgets start to feel real.
4. Apply for the initial licence. The Ministry checks overall suitability and financial integrity.
5. Apply for each basic permit. Every vertical needs its own approval with rules, technical description, responsible gambling measures, and testing evidence where required.
6. Pass technical approval. Here, ensure platform readiness for transaction-oversight connectivity.
7. Go live and stay compliant. Serious breaches can trigger suspension or revocation, and the regulator keeps watching after launch.

Even though the licensing path looks clear, there can still be challenges and issues. Minor inconveniences can also delay the timeline.

Common blockers usually come from a few areas:

• weak proof of funds or unclear origin of capital behind the surety;
• gaps in “relevant person” disclosures or incomplete corporate records;
• a platform that cannot meet the technical expectations (including monitoring connectivity);
• responsible gambling tooling that looks cosmetic instead of enforceable
• Governance changes without approval (merger or sale risk) because Czech permits are not freely transferable.

Costs and Taxes

This is where Czechia becomes blunt. The direct application fee is small, but the capital tie-up and tax load are not.

Upfront and Structural Costs

Application fees are minor, at roughly €200 per form. The hard part is the mandatory economic surety lodged with the Ministry of Finance (or provided via a bank guarantee in practice).

Required levels depend on the vertical:

• about €1.2 million in betting;
• about €2 million in casino games (including live).

This guarantee supports player payouts and tax obligations, and the operator must demonstrate the legitimate origin of funds. Even if a bank guarantee replaces a cash deposit, capital still gets tied up.

Operator Taxes

Czechia applies a special gambling levy on GGR, and the rates are high by EU standards.

As of 2024, the model works as follows:

• 35% of GGR for lotteries and slot-machine style/technical games;
• 30% of GGR for other activities (such as sports betting, live activities, bingo, poker).

Taxes are calculated quarterly on the net difference between money wagered (minus returned stakes) and payouts. On top of that, corporate income tax is 19% on profit, so the combined load can crush margins if pricing and retention economics are weak.

Player Winnings Taxation

Since 2024, the approach to user prize deductions tightened. The practical impact is not only on players, because operators must keep records and support reporting (and may have to withhold depending on the mechanism).

The headline change is the drop in the threshold. Earlier, only wins above roughly €41,000 triggered taxation. Now the limit is around €2,100 net per year, with amounts above taxed at 15% as personal income.

Ongoing Fees

Not every EU market stacks annual licence charges on top. Czechia is more direct. There are no recurring turnover-based or flat annual licence fees in the profile described here, so the ongoing burden is mainly the GGR levy plus compliance operations.

Opportunities and Challenges

This jurisdiction offers real upsides, but it does not forgive weak execution. A Czech permit gives legal access to a developed market and allows normal commercial activity such as advertising and CZK-facing operations. It also carries a level of regulatory credibility because it sits inside a strict EU framework.

Operators usually value these points:

• legal activity in-market with a clear rulebook;
• a more efficient multi-vertical path due to the two-step structure;
• regulatory openness to modern formats, including live dealer products.

The commercial reality is harsh. Taxes run at 30–35% of GGR, plus 19% corporate profit tax, so the margin stack can become unpleasant fast.

The compliance culture is also strict. Strong KYC/AML expectations and robust verification standards. That translates into higher operational costs and a need for disciplined risk control.

Finally, enforcement is active. Authorities use tools such as blacklists and blocking measures, and breaches can lead to suspension or cancellation. That is how the market stays clean.

The Main Things about Getting Licensed in the Czech Republic

The country gives operators a structured route into a regulated EU market, but the entry ticket is expensive in capital and heavy in ongoing taxation. A realistic plan starts with governance and funding.

Key aspects to keep in mind when entering the iGaming sector in Czechia:

• The legal basis is Act No. 186/2016 Coll., and gambling products must match defined categories, or they are not allowed.
• Online licensing uses a two-step model (an initial company permit first, then basic approvals per vertical for up to six years).
• The surety requirement is substantial (about €1.2M for betting and €2M for casino, with proof of legitimate funds).
• Operator taxes are at 35% GGR for lotteries/technical games and 30% GGR for other types, plus 19% corporate income tax.
• Enforcement is not soft since violations can trigger suspension, and illegal offerings face blocking and other measures.