Revenue from regulated gambling in the Czech Republic fell by 21.3% in 2018 to CZK31.3bn (£1.1bn/€1.2bn/$1.4bn). This decline can be attributed to a decrease in contributions from slot machines. Players in the country made wagers totaling CZK249.4bn across all products and channels, which is a growth of 11.3% compared to 2017. They won a total of CZK218.2bn. Slot machine revenue, referred to as “technical games” by the Czech General Directorate of Finance, experienced a significant drop of 39.3% to CZK14.8bn. Land-based slot revenue also plummeted by 42.4% to CZK12.9bn, while online revenue decreased by 4.8% to CZK1.9bn. These declines can be attributed to stricter controls on bonuses for land-based venues introduced in August 2017, as well as tighter rules on customer identification and registration that came into effect in March 2018.
Other casino products, such as table games referred to as “live games” by the Directorate, saw an increase in revenue by 8.0% to CZK2.3bn. This growth was primarily driven by a strong performance in land-based casinos. Online revenue for table games amounted to CZK175.1m, compared to CZK119.5m in 2017. Lottery revenue also experienced growth of 13.8% to CZK6.7bn, with retail channels accounting for 89.9% of the total. Online lottery, which has been legal since January 2017, saw revenue grow significantly by 78.0% year-on-year to CZK670.6m. Revenue from fixed-odds sports betting increased by 2.0% to CZK7.6bn, with the majority of revenue generated online. The land-based contribution to this vertical slightly decreased to CZK1.2bn. Totalizer, a physical outlet-only option, saw revenue almost double to CZK4.7m. Bingo, another land-based product, experienced a decline in revenue to CZK7.4m.
The decline in slot machine revenue resulted in a 20.3% year-on-year decrease in the government’s tax take from the industry, falling to CZK9.7bn. These results are the second set of full-year results published since the country’s revamped gambling regulations took effect in January 2017. However, the high taxes and lengthy administrative processes, including in-person registration requirements for igaming sites, have limited the appeal of the new regulatory framework designed to attract international operators. To further limit the availability of addictive products, services, and substances, the Czech government has agreed to increase taxes on gambling starting from January 2020. Lotteries, non-slot casino games, and bingo will see the tax rate rise from 23% to 30% of revenue, while the tax rate for fixed-odds betting will increase to 25%.
