Meeting of the Committee on Budgets – September 18th

Let me quickly inform you of yesterday’s meeting of the Committee on Budgets, where voting on the proposals concerning the taxation of players’ winnings as well as changes in the rates of burden gambling operators took place. The meeting on the tax package lasted more than 3 hours. Almost all CoB members as well as representatives of our business spoke in the debate (Jan Rehola spoke for IFGR, Mr. Sita for the Association of Poker Players and Fixed-Odds Bettors and Mr. Herman for APKURS). After the general debate, the vote was taken as follows:

Taxation of winnings:

  • Regarding the taxation of players’ winnings, the previously announced proposal prepared by the Ministry of Finance has been adopted. It keeps the withholding tax only for lotteries and introduces the taxation in form of the tax return of players. So, there is no need for software modifications by operators.
  • A large majority adopted an amendment of MP Vostrá, which increases the limit, below which the tax is not paid, to CZK 1 million per year.
  •  The amendment to completely abolish the winnings tax, which we fought for to the end, was not adopted by one vote.

Taxation of operators:

  • An amendment of MPs Onderka (Social Party) and Dolejš (Communist Party) has been adopted, which was supported by the whole opposition (ODS, PIRATES, TOP 09, STAN). It modifies the original government proposal by reducing the lottery tax from 30% to 23% and fixed-odds betting from 25% to 23% and raising the technical games rate from 35% to 38%.
  • This amendment was rejected at first, then the vote was put into question and then it was adopted by a single vote.