The Czech Republic is grappling with a significant issue in its gambling industry, as nearly a third of gambling establishments in the country are operating illegally. This revelation comes from the Institute for Gambling Regulation, which estimates that these unlawful operations could cost the state up to 2.1 billion crowns annually in lost revenue.
The problem extends beyond traditional brick-and-mortar establishments. With the shift of many players to online platforms during the COVID-19 pandemic, the issue has spread to the digital realm. According to Jan Řehola, director of the Institute for Gambling Regulation, up to 30 per cent of the entire gambling market in the Czech Republic is illegal.
These illegal gambling operations pose numerous risks. They fail to verify whether players are excluded from gambling, offer no protection for personal data or finances, and often provide an unfair gaming environment. Moreover, they allow minors to participate and undermine the legal market.
The discrepancy between official figures and industry estimates is stark. While the Customs Administration reports that the size of illegal gambling in the Czech Republic is at most five per cent of the total volume, focusing only on Czech-language online casinos, the Institute for Gambling Regulation paints a much grimmer picture.
Efforts to combat this issue include the introduction of a register of persons excluded from gambling, which has been in operation since April 2022. This measure has proven to be relatively effective in protecting vulnerable individuals and their families. However, it falls short of addressing the broader problem of illegal gambling establishments.
As the Czech Republic continues to navigate this complex issue, balancing regulation, enforcement, and protection of vulnerable individuals remains a significant challenge for authorities and the gambling industry.