Insight


CZECH REPUBLIC City Legislation


Several other cities were also fined by the Office in connection with their gambling bans. Nevertheless, it does not mean that granting individual targeted exemptions would necessarily always be fined


exceptions. However, according to the Office for the Protection of Competition, such regulation is not always lawful. An example is the City of Ostrava, where they only allowed gambling at selected addresses listed in the annex to the decree. Te Office for the Protection of Competition subsequently imposed a fine on the City of Ostrava for violating the Act on the Protection of Competition, as these places were not selected on the basis of objective, non- discriminatory and known criteria.


According to the Office, the City of Ostrava, without objective reasons, distorted competition on the market for the operation of gambling in the City of Ostrava by favouring competitors who could continue to operate gambling in the permitted places.


Another example is the City of Brno, which also faced a fine from the Office for the Protection of Competition. Te City of Brno issued a decree on a total ban on gambling in 2014, with the


for distortion of competition. These exceptions may be lawful if they are determined on the basis of objective justifiable criteria.


exception of two specific casinos. Subsequently, in 2017 Brno adopted the "Rules of the Statutory City of Brno for the definition of localities that can be included among the places where gambling may be permitted". Tese rules contain conditions for the inclusion of further targeted exceptions in the decree regulating the operation of gambling.


In July 2017 an additional operator applied to be included in the decree as another exception to the gambling ban. Despite the relatively transparent and objectively set conditions, the City of Brno rejected the application, although the applicant met all the conditions set out in the Rules. After nine months, the City of Brno eventually included the applicant among the


exceptions. Te Office for the Protection of Competition fined the City of Brno for the nine months of violating its own rules without stating any objective reasons, thus unlawfully preventing this applicant from entering the relevant market. Te City of Brno filed an appeal against the decision; however, the Office confirmed its initial decision as well as the fine in July this year.


Several other cities were also fined by the Office in connection with their gambling bans. Nevertheless, it does not mean that granting individual targeted exemptions would necessarily always be fined for distortion of competition. Tese exceptions may be lawful if they are determined on the basis of objective justifiable criteria. For example, the rules for granting exemptions laid down by the City of Brno meet such an aspect of objectivity and had the City of Brno not unjustifiably deviate from them, its practice would most likely be in compliance with the law.


NEWSWIRE / INTERACTIVE / MARKET DATA P109


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