IntroductionGambling activities in the Czech Republic are regulated by the International Relations and Financial Policies Section of the Minister of Finance. Department 34, the State Supervision of Gambling and Lotteries Department (“Department”), is responsible for implementing rules and regulations regarding the country’s gaming industry. Although the Czech Republic is one of the top jurisdictions for total number of gambling machines, the country could see a reduction in the number of machines due to a recent court ruling that allows local government units to regulate gambling machines at the local level.
1Regulation of Gambling Supplies and Gaming MachinesThe Act 202/1990 (“Act”) puts forth technical standards and other requirements for gambling machines and related equipment, although there is no formal licensing process for gaming suppliers in the Czech Republic.
Gaming machines and other typical gambling games are regulated through the Act, which provides the basic legal framework for regulating the gambling industry in the Czech Republic.
2 The Act defines “gaming machines” as “betting games that are operated by means of electronic or electromechanically gaming machines or other like devices.”
3 Other specific equipment and supplies for gambling games are also listed in the Act as “lottery and other like games” in Section 2, including roulette wheels, technical devices, lottery tickets, and other devices.
Gaming Technology StandardsThere are several technical considerations for gambling machines that are unique to the Czech Republic. The Act requires that electronic games may not run faster than one bet per second.
4 The maximum wager for any single bet ranges from 2-5 CZK for games placed in gaming parlors and 500 CZK for games located in a casino.
5 Payout percentage for each gambling machine must average at least 75%.
6 In addition, the highest aggregate hourly loss a patron can experience at a single machine is 1,000-2,000 CZK for machines in gaming parlors and 10,000 CZK for machines located in casinos.
7In addition, the Act establishes that all gambling must be conducted with tokens or chips.
8Technical compliance with the Act’s provisions is monitored by local and territorial officials.
9 Initial testing of gaming machines and other devices requiring technical approval is completed by the Institute for Testing Certification (Authorized Body No. 224).
1See 'Czech councils win gambling machine battle,' Prague Daily Monitor, June 15, 2011.
2Act 202/1990, Sec. 2.
3Act 202/1990, Sec. 2(e).
4Act 202/1990, Sec. 17(3).
5Act 202/1990, Sec. 17(4).
6Act 202/1990, Sec. 17(5).
7Act 202/1990, Sec. 17(6).
8Act 202/1990, Sec. 35.
9Act 202/1990, Sec. 46.
