Analysis CZECH REPUBLIC
choice of reel-based or video-based AWPs. The Czech player is said to be quite insular in their playing style. Thus, the question is how to involve them with other players. The community jackpot solution from JPM is the ideal solution generating a community atmosphere in the location. Single AWPs were also on display from JPM with particular focus placed on the new Wild MaxPower. The majority of the machine manufacturers also showed AWPs, with Jamp displaying Barcrests’ Red range, while Auto Games had various AWPs on display.
vlts under attack The Czech market has not capped the number of VLTs allowed in the market, as stipulated in Italy for example. Therefore, the market has grown quickly. Politicians who may cite the risk of gaming addiction through VLTs with the high bet stake and win potential, should look at the average bet on VLTs which was cited at Forbes as being between 13CZK (13 euro cents) and 30CZK (€2.11).
A week before the exhibition a new law was passed that has brought much uncertainty. The reasons behind this are debatable. Local governments (municipalities) have the right to refuse permission to site AWPs while also receiving a local tax. This has not been the case for VLTs. VLT licences are obtained from the Ministry of Finance. Operators must, however, gain approval in terms of city and site for every single VLT terminal. One point of view is that VLTs have grown too dominant in some parts of the country as the local government has had no control over, or received revenue from them.
There is no ruling in Czech to limit the number of VLTs per arcade – following a free market principle. However, as VLTs pay their taxes to the state - 10 per cent of GDR and 1 per cent for state supervision, local governments were receiving no direct tax. This has now changed with 5,000 CZK (202 euros) payable per machine per quarter to the local government.
This increased cost would be acceptable to the market if that were all. But two major points are added to this. Up to now gaming machine operators have had to pay a community tax to support local culture/ sports/ charities. Operators have been free to pay this tax directly. Smaller companies had to pay from six per cent, larger companies up to 20 per cent. The temptation has been to split larger companies into smaller ones to reduce the tax burden. Furthermore, there was not an association in place to assure that the monies transferred were really for the benefit of the society as a whole. The
December 2011 Page 56 Ivan Zoumpalov, MD of Avangard Technology.
Kajot also allows play in euros - good for the casinos on the Austrian and German borders.
Synot’s David Mixa proudly demonstrates the company’s new Black & White VLT.
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