Following the publication of last year’s report on gambling in the Czech Republic, there were some misinterpretations in the media regarding the amount of money gambled by players during that year. At the Institute for Gambling Regulation (IFGR), we would like to prevent such inaccuracies this year with the release of the 2024 Report on Gambling in the Czech Republic by providing additional context to the data.
First, we would like to clarify the reported increase in the prevalence of gambling among children and adolescents highlighted in the report. The mentioned figures, stating that nearly 16% of adolescents have experience with gambling and 2% gamble regularly, are based on a survey targeting students aged 15 to 19. This data does not explicitly distinguish between minors and those who are already 18 years old, who could constitute a significant portion of the respondents. During the review process, IFGR highlighted the potential for misinterpretation in the survey results, and future studies will reflect this by separating age groups. A large portion of this demographic may be individuals over 18, who are legally allowed to gamble in the Czech Republic.
The main cause of underage gambling, however, is the significant presence of illegally operated gaming venues and online casinos, which allow minors, adolescents, and other individuals excluded from gambling to participate. According to the *Black Book of Illegal Gambling* analysis, land-based and online operators who do not comply with the law account for up to 30% of the gambling market. In contrast, legal operators verify every player to ensure they are over 18 and not listed in the Excluded Persons Register. Failure to do so can result in a hefty fine of up to CZK 50 million. Therefore, as we have consistently emphasized, it is crucial to focus on more stringent enforcement against illegal gambling.
Regarding the amount wagered last year, it is true that Czechs bet a total of CZK 873.5 billion in 2023. However, it is important to mention that CZK 814.3 billion was paid out to players as winnings, meaning the actual losses amounted to CZK 59.2 billion. This is significantly less than the reported total wagered amount.
The often-cited figure of CZK 873.5 billion represents the total sum of all money placed into bets, often multiple times. For example, if a player bets the same amount repeatedly, each bet is recorded separately, leading to an increase in the overall amount of “wagered” money in the statistics, even though from the player’s perspective, it is still the same money.
The vast majority of this circulated money is returned to players in the form of winnings. Last year, 93% of all wagered money was returned to players. The actual loss of CZK 59.2 billion is only CZK 5.4 billion (10%) higher than in 2022.
It is also important to emphasize that this CZK 59.2 billion is not the net profit of gambling operators. From this amount, the state collects 23% or 35% in gambling tax, depending on the type of game. In 2023, this tax collection totaled CZK 18.3 billion. Of this, CZK 9.5 billion went to municipal budgets and CZK 8.8 billion to the state budget, with the state’s share of gambling tax revenue reaching 48%.
In addition, operators cover their operating costs and pay other taxes, insurance, and fees to the state from their revenue. As a result, more than half of all lost money ultimately returns to the state. Moreover, from January 1, 2024, the tax rate for live games, bingo, fixed-odds betting, totalizator games, tombolas, and small-scale tournaments increased from 23% to 30%.
Although the data may suggest that gambling is rapidly growing in the Czech Republic, the opposite is true. Since 2011, when there were more than 100,000 licensed gaming machines (slot machines) in the country, their number has been steadily declining. As of January 1, 2024, 51 companies held permits to operate gaming machines, with a total of 24.3 thousand machines allowed.
At the Institute, which is also a new member of the Government Advisory Committee on Addiction Data Collection, we believe that putting this data into the correct context will contribute to a better understanding of gambling in the Czech Republic and help prevent any misunderstandings that may arise from incomplete interpretations of statistics. Unfortunately, these misunderstandings have long unfairly damaged the gambling sector, which has made significant progress in recent years, and it is no longer true that the Czech Republic is the “casino of Europe.”
