Revenues and expenditures of public budgets in the Czech Republic related to gambling 21st September 2017 doc. JUDr. Radim Boháč, Ph.D. Department of Financial Law and Financial Science

Syllabus of presentation Gambling market 2014 - 2016 Gambling Gambling reform in the Czech Republic Main aims of gambling reform Gambling revenues of public budgets Expenditures associated with gambling

1. Gambling market 2014-2016

2. Gambling strictly regulated area gambling types public interest to govern gambling negative social impacts (gamblers, drugs, criminality, personal bankruptcy…) gambling types a lottery an odds bet a totalizator game bingo a technical game a live game a raffle a small size tournament

3. Gambling reform in the Czech Rep. 2 phase of the reform 2016 - (only) raising rates of lottery and other similar games levy 2017 - new gambling legislation Gambling Act measures to prevent problem gambling such as mandatory registration of players, operator's obligation to offer a self-limiting measure to the player, etc. limitation of game room types (not pubs, gas station…) Gambling Tax Act Act amending certain acts in connection with the adoption of Gambling Act and Gambling Tax Act

4. Main aims of gambling reform protecting gambling participants (players, bettors), prevention and elimination of socially pathological phenomena associated with the operation of gambling increasing tax revenues from gambling effective collecting tax revenues, opening the Czech gambling market to operators from the EU countries and regulation of operating online gambling

5. Gambling revenues of public budgets special tax 2012-2016 – lottery and other similar games levy tax base: bet-win tax rate: 2012-2015 – 20 %, about 25 % technical games 2016 – 23 %, about 35 % technical games from 2017 – gambling tax tax rate - 23 %, 35 % technical games corporate income tax administrative charges

Revenues of gambling tax 2013-2016 At the end of 2016, a total of 57,452 individual facilities for the operation of technical games were authorized in the Czech Republic

6. Gambling expenditures programs of Government Council for Drug Policy Coordination grants on prevention and treatment of problem gambling 2013 – 2015: CZK 3-5 million per year 2016: CZK 24.5 million social costs for gambling 2012 - CZK 14.2-16.1 billion per year (Psychiatric Center in Prague) 2015 - CZK 5.3-5.7 billion per year (Center for Economic and Market Analysis) or CZK 6.2-7.9 billion per year (Kaisner)

7. Conclusion 2 contradictory main aims 2016 2017 protecting gambling participants (players, bettors), prevention and elimination of socially pathological phenomena associated with the operation of gambling increasing tax revenues from gambling 2016 only increasing of tax revenues 2017 ?

e-mail: bohac@prf.cuni.cz web: www.radimbohac.cz tel.: +420221005530 21st September 2017 doc. JUDr. Radim Boháč, Ph.D. Department of Financial Law and Financial Science