ČR receives CZK 4bn from lottery, betting industry in H1

Prague, Sept 13 (CTK) - Czech state coffers received almost Kc4bn from the lottery and betting industry in the first half of 2012, most of the money coming from operation of interactive video lottery terminals, Petr Vrzan, head of the SPELOS association of central lottery system operators, told CTK Thursday.

The rest of the amount paid to the state coffers came from the other types of lotteries and betting games, according to Vrzan.

"The projection that we will contribute Kc10bn to public budgets in the entire year, as was announced, is more than realistic," Vrzan said.

Apart from the lottery tax, the lottery and betting industry also pays administrative fees, income tax and VAT to the state.

However, the number of illegal lottery outlets and online betting kiosks is growing, and the state should focus its attention above all on these entities and prevent them from illegal activities, SPELOS said.

But the Finance Ministry already said earlier it wants to focus on checks of illegal gambling places.

The government in August approved a new proposal of the law on operation of betting games that will enable, among other things, foreign ownership of all types of betting games.

But representatives of the Czech gambling industry criticise the law.

The law also contains a provision on the shortening of the so-called transition period from three years to six months. During the transition period, lotteries and other similar games can be operated in towns without town councils having the possibility to limit the activity.

If the law is adopted, lottery terminals could completely disappear from Czech towns in mid-2013 already.

But according to SPELOS, the shortening of the period is an intervention into the rights of operators who can turn to a court to resolve the problem.

SPELOS is the largest association of central lottery system operators in the Czech Republic.