The Czech Constitutional Court has recognised the right of capital municipalities to regulate live casino games autonomously. This ruling allows for the complete ban or partial restriction of niche gambling depending on each district’s conditions and social environment.
The decision will allow Prague’s separate authorities to respond flexibly to issues related to ludomania and public order. This factor promises to make the RMG segment safer and more transparent.
Local Interests as a Priority
The legal proceedings were initiated because of a 2021 ordinance, which prohibited the operation of slots throughout the capital but allowed live dealer content, such as roulette or poker. The document also gave the city’s 57 administrative districts the authority to introduce unique restrictions.
In 2023, the initiative was challenged by the country’s Ministry of the Interior and ÚOHS, arguing that the project violated competition principles and uniform standards. Nevertheless, the Court did not uphold the claims.
It was recognised that the regulation complied with the Gambling Act of 2016, which allows for decisions to be made at the municipal level.
The current situation is as follows:
- 41 districts of Prague have introduced a complete ban on live-dealer entertainment;
- the remaining parties of the city have set limited work hours for the vertical.
Such measures are based on objective reasons, primarily complaints from residents and the risks associated with ludomania and safety in certain areas.
Operators' Liability: New Level
The Court’s decision brings legal heterogeneity and complicates some business activities. Niche entrepreneurs working in several districts are forced to adapt to different requirements and monitor compliance with new local rules. This factor entails increased costs for lawyers, licensing, and interaction with municipal authorities. Some companies revise operations and consider abandoning them in the most strictly regulated areas.
Earlier this year, the country’s Financial Administration conducted an audit, revealing large-scale tax violations in the sector in 2021−2022. Back then, the state’s budget was replenished by CZK 540+ million ($25 million) but lacked CZK 340 million ($16 million). The involved parties received fines for incorrectly reported fees.
One of the key methods for that research was the advanced analysis of suspicious transactions and abnormal player behaviour.
Municipal Approach: Flexible Regulation
Despite the concerns of gambling representatives, the capital’s City Council supported the Court’s decision. Its members stated that uniform federal rules do not reflect the specifics of individual districts.
Some Prague areas face a rising issue of ludomania and related crime. A flexible approach allows these aspects to be addressed in a targeted and effective manner.
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