Czech Industry Self-Regulating After Government Analysis

September 28, 2021
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A trade group in the Czech Republic representing nearly the entire licensed gambling market has embarked on a new sweeping harm reduction project, as the Ministry of Finance continues to push for more comprehensive online and advertising restrictions.

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A trade group in the Czech Republic representing nearly the entire licensed gambling market has embarked on a new sweeping harm reduction project, as the Ministry of Finance continues to push for more comprehensive online and advertising restrictions.

The Institute for Gambling Regulation’s (IFGR) "Responsible Gambling Project" has launched a new Code of Responsible Conduct of Operators for its members, which it says represents 95 percent of the local licensed market.

The code of conduct is split into four sections: responsible advertising; raising awareness of responsible gambling; prevention of high-risk behaviour; and training employees.

A Code of Responsible Advertising and Marketing is also included.

The IFGR said the new rules “go beyond the already strict Czech regulation”.

“Regulation is not always effective and cannot respond in time to changes in players’ behaviour and offer effective assistance and help,” the group said.

Among the new obligations is a responsibility for operators to inform customers about responsible gambling tools immediately after they register.

Additionally, operators are prohibited from marketing to high-risk players, people on the national self-exclusion register and people under 18 years of age.

As part of the project, the IFGR and the National Institute of Mental Health are creating a predictive mathematical model to evaluate real-time changes to people’s gambling behaviours.

The IFGR intends for the software to be able to spot the moment when a player starts making risky bets and immediately alert them to this fact.

The tool will work by monitoring markers of high-risk gambling behaviour online, such as the amount of cash deposited, the frequency of their deposit into the player’s account or the time spent gambling.

In the future, there is an agreement among operators to share information regarding players making risky bets.

In total there are 35 members of the IFGR, including Sazka, CASINO KARTÁČ Group, MERKUR Casino and Fortuna Gambling.

As part of the responsible gambling initiative, the IFGR will also launch a responsible gambling week in the country.

The IFGR announcement follows the publication on September 13 of an updated version of the government's comprehensive review of the country’s gambling legislation, carried out by the Ministry of Finance.

The ministry’s latest analysis, which is a non-static document, concluded there is currently no need to implement significant changes or intervene more deeply into the industry’s regulation.

However, it does recommend more comprehensive online regulations, as well as “potential adjustments to the regulation of advertising”.

Gambling ads in the Czech Republic must not portray gambling as a viable source of regular income or be targeted at persons under 18 years of age and must include a warning that gambling by players under 18 years of age is forbidden and that gambling is addictive.

The latest analysis of the Czech industry comes not long after finance minister Alena Schillerová warned in June that “increasingly risky” online games could require a higher level of taxation in the future.

Online gambling is taxed at 23 percent of gross gaming revenues (GGR), with the exception of gaming machines, which are taxed at 35 percent of GGR.

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