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Regulation of Sports Betting in the Czech Republic

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Sports Betting: Law and Policy

Part of the book series: ASSER International Sports Law Series ((ASSER))

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Abstract

This book looks at the Law and Policy on Betting and Sport in many countries around the world—sport is a global phenomenon—providing a very useful and valuable comparative survey on a subject that is so vital for safeguarding and preserving the integrity of those sports in which betting is legally allowed. The country reports show how sports-related betting is organized in the country concerned, also from a historic and policy perspective (national Lotteries Act; state run/state licensed lotteries and/or private operators; how the licensing system for public operators works; state supervisory mechanisms, etc.), and contain a treatment of the national case law.

Pavel Hamerník—Doctor of Law.

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Notes

  1. 1.

    Kramář and Hušák 2006, p. 38.

  2. 2.

    http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/hernizakon_tiskoveinformace.html, Ministry of finance webpage, Press releases section, Award made to Ernst and Young in March 2008.

  3. 3.

    The proposal of Senators Josef Novotný, Pavel Vícha and others to amend the lottery law, the document no. 239, http://www.senat.cz/xqw/xervlet/pssenat/historie?ke_dni=01.03.2009&O=7&action=detail&value=2261.

  4. 4.

    See Senator Novotný arguments in “Hušák and Novotný call for abolishing the lottery law,” http://www.financninoviny.cz/zpravodajstvi/pocitace/index_view.php?id=312574, 14.5. 2008.

  5. 5.

    The Lottery law distinguishes specifically named categories in its Art 2, these are: (a) money lotteries or lotteries for prizes in kind, (b) tombolas, (c) numerical lotteries, (d) instant lotteries, (e) betting games that are operated by means of electronic or electromechanically controlled gaming machines or other like devices, (f) betting games, with which the prize winning is conditioned by the successful guess of the outcome or scores of sport competitions, races and the amount of the prize depends on the ratio between the number of winners and the total amount of the deposit (wager) and the prize ratio that is set in advance, (g) betting games operated with the use of a special type of tokens, (h) betting games, with which the prize winning is conditioned by the successful guess of the outcome or scores of sport competitions, races or the successful guess of the outcome of other events of public concern providing the bets on such event is not in defiance to any ethical principles. The prize is directly proportional to the prize ratio at which the bet was taken and the wager amount, (i) betting games operated in gambling parlors specifically established for this purpose (casinos) including those operated with the use of mechanical devices (such as a roulette), (j) lotteries and other like games that are run by means of the technical devices operated directly by the bettors or operated via the telephone, where neither the number of participants is determined in advance nor the amount that was wagered is known beforehand, betting games in which a win depends on guessing the order in which racehorses arrive at the goal post (the English translation of these categories was used from webpage of Sazka, www.sazka.cz). However, according to Article 50 the lottery law allows the scenario when the Ministry of Finance approves other games not specified by the law. This is under heavy criticism and specifically noted in the Senate proposal to amend the lottery law because the legal certainty is disappearing and hazard expands.

  6. 6.

    Although not subject to Trade license law no. 455/1990 of Collection of laws, but subject to lottery law.

  7. 7.

    Kramář and Hušák 2006, pp. 42–45.

  8. 8.

    http://www.compet.cz/verejne-zakazky/aktuality-z-verejnych-zakazek/predseda-pecina-potvrdil-pokutu-za-ceskou-losovacku/, See Press releases of Czech Competition Authority of 28th February 2008.

  9. 9.

    http://www.mfcr.cz/cps/rde/xchg/mfcr/xsl/hernizakon_tiskoveinformace.html, submitted to the Ministry of Finance on 1st September 2008 and is accessible at this internet page listed above.

  10. 10.

    Statistics provided by Pavel Moudrý of Šance company in the interview for Radiožurnál on 6th of January 2009. Moudrý adds that he does not expect any big increase of internet betting since today.

  11. 11.

    Similarly, Czech Criminal Code seeks in its Article 217 to protect due morals of youth, and not to allow them to fall under hazard games.

  12. 12.

    Page 26 of the Final report.

  13. 13.

    Kramář and Hušák 2006, p. 63.

  14. 14.

    Kramář and Hušák 2006, p. 46.

  15. 15.

    Details concerning the amount of basic capital are listed in Article 4 of lottery law available in English at www.sazka.cz. See also special case of horse racing betting at Article 40 of lottery law.

  16. 16.

    Kramář and Hušák 2006, p. 48.

  17. 17.

    Malast and Rajchl 2007, refer to the case-law which determines the term “Part of proceeds” (for example Czech Constitutional Court, 4th of July 2001, sp.zn. II ÚS 285/01). The amount of final counting of “Part of Proceeds” may be even sometimes higher than the final profit of the undertaking itself! Kramář and Hušák 2006, p. 65. It has been claimed that the proceeds to general beneficial activities together with administrative fees and payment of wins is higher financial burden than for regular undertaking in the business under taxation system not regulated by lottery law (Senator Novotný arguments in “Hušák and Novotný call for abolishing the lottery law,” http://www.financninoviny.cz/zpravodajstvi/pocitace/index_view.php?id=312574, 14.5. 2008).

  18. 18.

    The rest of the law sets up the tasks of Ministries, other administrative organs and regional authorities on support of sport.

  19. 19.

    Kramář and Hušák 2006, p. 89.

  20. 20.

    Czech Criminal Code forbids also unauthorized business of lotteries and other similar games in the Article 118a as well as cheating at operation of lotteries and other similar games, Article 250c).

References

  • Kramář K, Hušák A (2006) Herní právo. Aleš Čeněk, Plzeň

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  • Malast J, Rajchl J (2007) Soudní Judikatura v oblasti herního práva. Aleš Čeněk, Plzeň

    Google Scholar 

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© 2011 T.M.C. ASSER PRESS, The Hague, The Netherlands, and the authors

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Hamerník, P. (2011). Regulation of Sports Betting in the Czech Republic. In: Anderson, P., Blackshaw, I., Siekmann, R., Soek, J. (eds) Sports Betting: Law and Policy. ASSER International Sports Law Series. T.M.C. Asser Press. https://doi.org/10.1007/978-90-6704-799-9_18

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