Gambling business in the Czech Republic

Gambling in the Czech Republic

Gambling with money has been attracting people since ancient times. On the territory of Bohemia this is proved by the discovery of primitive dice among other found objects in the Celtic oppidum near Stradonice. New times in Bohemia brought various object lotteries, and in the 18th century the first cash lotteries organized by the state appeared. A little later the opinion emerges that cash games could not be eliminated, but one could try to regulate them (e.g. so that minors could not take part in them) and impose a tax. One form of taxation in the Czech Republic is compulsory deduction for charitable purposes, which can be a kind of compensation for the fact that gambling is not useful to society.

For three hundred years the organizers of globotech online casinos have been trying to offer players various convenient mechanisms. Leading role played and occupy gaming machines, the prototype of which appeared in the U.S. and, almost simultaneously, in Europe in 1870. America went the way of mechanical shuffle cards and machines with symbols, while European manufacturers have put on the art of the player skillfully handling the thrown coin. Metal dominated production in the U.S. and wood dominated production in Europe. What San Francisco and Chicago were to the United States and Leipzig was to Europe, Semilla was to the Czech Republic. It was here in 1926 that the first Czech slot machine, made by carpenter Josef Mach, was created and began operating. However, the Czech name for this type of device was that of its competitor. Josef Vanek of Semil built a machine in Podmoklice to which he gave the name “FORBES”. After that, slot machines in Bohemia were not called by any other name. Vanek’s factory had many branches throughout Czechoslovakia, and thousands of machines operated in Czech bars. It is worth adding that a special version of the machines was produced for Ethiopia – casino machines.

The first gambling establishments in the Czech Republic appeared during the Protectorate, and later under socialism, which not only did not restrict gambling, but even made it compulsory in school in the 60s. Pupils who had not yet turned 18 were required under teacher pressure to buy a huge number of lottery tickets, such as “Czechoslovak-Soviet friendship”, “Mona”, state and local lottery tickets. In 1967 and 1970 there were also slot machines produced in Czechoslovakia and, without any ban, imported from other countries.

The continuation of the tradition of automatic machines in the bars of the First Republic would not come until 1990, when a new law would come into force allowing the operation of automatic machines by private entities. A year later, the production of automatons resumed in the country. Almost bankrupt military factories were brought in for this purpose, which gave the workers hope to work again. ZPA ńĆakovice was at the origin of the rebirth of a new generation of Czech-made slot machines. The companies Krijcos, Hramat and Income also played a big role.

Present time

The month of May 1990 brought drastic changes to the Czechoslovak lottery market: The state monopoly on organizing games with bets ended. From now on, the organizers could be legal entities and private enterprises. The new lottery law contained requirements for the organizers. The period of validity of the law was set for two years. But it is well known that nothing is more eternal than a time limit. Thus, law no. 202/1990 Sb. on lotteries and other similar games is still valid today. Later it was slightly amended, but the main changes did not take place until 1998. It was at this time that new “implementers” of familiar games appeared. Their main goal was to concentrate the generation of random numbers and the subsequent control of the work in one place, with the possibility of state supervision online. Previously this was possible, but extremely difficult, whereas now the imported systems have been specially adapted to this. Logically, the cost of development, production, and subsequent implementation needed quite different funds than putting any simple equipment in a bar. Also developing, producing and distributing equipment of the “something in between” type, allowing entities with small budgets to maintain them (subject to certain requirements, of course). Development cannot be reversed, which cannot be better applied to games with bets. Roulette today can be implemented on a scratch-layer lottery ticket, on a classical slot machine, a mechanical roulette wheel and an electronic-mechanical one, through a system and virtual reality through the Internet.

The Czech lottery market is crowded with individuals who have a valid permit from the competent authorities, as well as those who do not possess the relevant documents. Representatives of the first group are obliged to establish firms with a large initial capital, ensure that their employees, representatives and owners do not have a criminal record, make various deductions (including part of their income), pay for state supervision, provide jobs for tens of thousands of people, and most importantly – to ensure that a person under 18 years old cannot make a bet, to combat money laundering. The representatives of the second group, which includes the foreign betting organizers over the Internet, do not have to pay for anything. So a lot of money of gamblers in the Czech Republic go abroad every year – more than 5 billion Czech Crowns. And there is no way to identify the player and the source of his money.