INTERVIEW
Radek Pucek, CEO, e-gaming
last response, the changes will probably foster illegality.
Why has the government favoured online gaming as part of the new legislation? How will the introduction of online gaming impact on the much smaller land-based gaming sector?
As this is rather a question of politics, than any kind of logical action, allow me to say "No comment.”
What effect will the reduction of gaming locations have on the gaming sector?
The immediate impact will probably be minimal, because for most of the operators there will be a transition period when everything will work according to previous conditions. We expect the main impact to become visible in 2018. By this year, most importantly, all gaming operations will disappear from restaurants and only bigger gaming-houses and casinos will remain.
For e-gaming itself, the impact is not going to be that dramatic because the company already entered the gaming industry with a VLT product that is being implemented into those bigger gaming-houses and casinos.
If we see the reduction of 30,000 machines this year and potentially 50,000 in total by 2017, where are the players of these machines going to play in the future?
Without any doubt, they are going to play online or illegally. The illegal sector is the thing that concerns us the most. Thanks to some abrupt and injudicious legislative changes the Czech market experiences a great and undesirable development.
Will the increase in taxes actually bring more revenue to the government or simply drive legal businesses out of the market and foster illegality?
In my opinion, the revenue will not be dramatically higher and in accordance with my
positions and maximum of 30 machines. l
Casinos can operate live gaming tables and have at least three live gaming tables and at least 30 slots and maximum of 100 machines. In a casino with technical games for each additional live gaming table (above the minimum) there can be a maximum of 10 technical games. Tis doesn’t apply to casinos where gambling limit is set to a minimum of 10 live gaming tables. It must also be kitted out with a complete monitoring system for real time recording this must also be stored for 24 months.
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Internet – Internet gaming is permitted to Czech, EU or EEA operators. User accounts have to be set up with registration process to include identity, any self restriction measure and payment methods. A maximum of CzK5,000 in 24 hours is allowed for cash deposits. Tere will be a black list of illegal internet sites.
Law 187/2016 relates to the taxes on gambling and includes:
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Technical games (VLTs, electronic roulettes, online slot games/roulette) – will pay 35 per cent or minimum rate of CzK9,200 per calendar quarter (whatever is higher).
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Sports betting, lotteries, live casino games, horse betting and bingo will pay a rate of 23 per cent
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Of this tax 35 per cent goes to the state budget and 65 per cent to municipal budgets.
Basically this bill will replace the old fashioned lottery law and is aimed at bringing in a stricter state supervision, proper taxation of gambling, opening up the market for online operations and eliminating gambling addiction.
Te Czech industry however says it has divided the gambling sector into “good” and “bad” gambling. Te “bad” being the VLTs and AWPs, which are to be removed from the single site market and only permitted in larger arcades and casinos and therefore removing the majority of the smaller operators from the market. Te “good” gambling is sports betting, lotteries
Moreover, to this day we actually do not know the exact wording of the government regulation. Making predictions and estimating detailed impacts on the gaming sector is therefore, at this moment, very dificult.
Why does the government view VLTs and AWPs as bad and instead favour sports-betting, lotteries and online gaming?
This is a question that should be directed to the Ministry of Finance of the Czech Republic.
How do you see players reacting to having to register and have their despots, bets and winnings recorded by a server?
I think it will probably have an impact on a smaller group of players, nevertheless, I do not see that as a big issue. Assuming that palyers will not be provided with other illegal options.
What effect will the changes in operating hours of slot halls have on the operations?
Again, I do not find it that big of an issue. The changes are not that dramatic.
Will the blacklist of illegal sites work to curb illegality in the online gaming sector? There have been problems with such systems in other markets.
Everything depends on the technical measurements that will enforce these rules. If they are inadequate, then considering the heavy taxation of the legal online business, the black market will most certainly be large.
and online gambling which is set to be revitalised.
Te industry insiders say the changes will reduce the number of VLT and AWP machines by around 30,000 this year and by around 50,000 next year. Although larger arcades and casinos will flourish with less competition as smaller operations will close, the big concern is how the players will respond with detailed monitoring.
Several workshops were held over the summer to help operators get to grips with the new changes and highlight any queries.
David Mixa of Synot said: “However even after those workshops many things remain unknown and we still don’t know how the main parts of the machines/systems are likely to be certified. Te Ministry of Finance took notes during the workshops and promised to answer some important parts however they did not say when they will clarify these questions.
“Taking into consideration that we are coming to NEWSWIRE / INTERACTIVE /
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