Torrent Gear

Government revenues from licenses and taxes

1) Basic tax design

Tax base: GGR = accepted bets minus winnings paid (for each type of game).

Tax rates:

35% GGR - for lotteries and technical games (slots/VLT and their online counterparts);
30% GGR - for other types (fixed bets, bingo, live games, sweepstakes, etc.). The 30% change is valid from January 1, 2024 (previously - 23%).
Minimum tax for "ground": for each position of the technical game, a minimum of a fixed quarterly tax is charged (sources indicate the evolution of the threshold; historically - 9,200 CZK/quarter, in a number of reviews an increased level of 13,400 CZK/quarter appears - the operator pays the greater of two: 35% GGR or minimum).
Reporting dates: tax is filed and paid quarterly (until the 25th day after the quarter).
CIT (income tax): if there is a tax obligation in the Czech Republic, the operator also pays corporate tax (the current rate for the general regime).

2) Where the money goes: distribution between the state budget and cities

The Czech system directly "feeds" local budgets through the gambling tax:

For technical games, revenue is shared by 35% state/65% municipalities.
For other species - 70% to the state/30% to municipalities.
This formula is enshrined in official reports and allows small cities to significantly replenish the budget.

The result for 2023: the share of municipalities from the total "gambling" tax amounted to ≈52% (about 9.5 billion CZK), the rest is the central budget.

3) Scale of revenues: benchmarks by year

2023: tax revenues from the gambling sector - CZK 18.593 billion; this reflects the growth of online and more efficient administration.

2024 (estimates/media): a number of business publications and press messages of the financial block indicate an increase: about 20.6 billion CZK of "gambling" taxes (+ 12.5% YoY). Use this benchmark as an indicator before publishing final budget statements.

GGR context: with CZK 59.2 billion in net player losses in 2023 (rates 873.5 billion - winnings 814.3 billion), paying tax on GGR gives comparable budget revenues.

4) Licenses, fees and financial guarantees

In addition to the GGR tax, the state receives administrative fees and requires monetary guarantees (surety), increasing the discipline of operators:

State duty for the "basic" license application: 5,000 CZK (not transferred, the validity period of the basic license is up to 6 years).
Submission/procedure: application to the Ministry of Finance of the Czech Republic; the license is inalienable, the term is a maximum of 6 years (for the basic one).
Financial guarantees (Law No. 186/2016): for example, CZK 10 million for each casino (CZK 20 million minimum, CZK 50 million maximum per operator); for "gaming halls" - other thresholds (1 million CZK per hall; minimum 10 million CZK/maximum 50 million CZK per operator). These amounts are frozen in favor of the state for a period exceeding the license period for at least 1 year.

💡 Direct contribution from state duties on a budgetary scale is small, but guarantees and deposits are a key risk mitigation tool (payments, liability, closure of obligations upon license revocation).

5) Administration and control: additional revenues

The financial administration regularly conducts thematic audits: in 2025, according to the results of the audit of 2021-2022. was additionally charged and returned to the budget ~ 540 million CZK (≈€22 million) due to identified violations (underestimation of the base, incorrect fees).

6) What it means for the state and the industry

For the budget: a stable revenue channel (two-part GGR tax + minimum tax on automatic machines), as well as targeted support for municipalities through "65%" of technical games.

For operators: a predictable fiscal model with a high load on slots/lotteries (35%) and a moderately lower one on other products (30%) after the 2024 reform.

For the regulator: emphasis on transparency of reporting, online telemetry and risk analytics; The relevant division of the Ministry of Finance coordinates tax and licensing agendas.

7) Frequent questions (mini-FAQ)

Who gets the money from the tax? For "technical games" - 35% of the state budget/65% of municipalities; for others - 70 %/30%, respectively.

How much was collected in 2023? CZK 18.593 billion (gambling taxes).

What's with 2024 + rates? 35% for lotteries and technical games; 30% - for others (instead of the previous 23%).

Is there a "minimum tax" on machines? Yes, quarterly minimum per position (sources indicate 9,200-13,400 CZK/quarter depending on the threshold applicable in the period/by interpretation).

What other payments are there? State duty for the application (5,000 CZK) and financial guarantees (tens of millions of CZK by type of object).

The budget model of the Czech Republic in the gambling sector is high but transparent taxes with GGR, minimum payments on machines and proportional distribution of funds with a tangible share for municipalities. In practice, this gives ~ CZK 18-21 billion in annual tax revenues (in recent years), a stable discipline of operators through guarantees and a stable basis for local budgets. For business, success = compliance, correct product classification (30% vs 35%) and accurate reporting - otherwise you risk additional charges and sanctions.