The Czech Republic is reportedly losing over CZK330 million (approximately $15.9 million) in tax revenue each month due to the activities of illegal gambling operators, according to a recent report. Released on January 12, 2026, the “Black Book of Illegal Gambling” was authored by Robert Klobuck of the Slovak Academy of Sciences’ Sociological Institute, in collaboration with Aleš Rod from the Centre for Economic and Market Analysis. The report highlights the economic impact and loss to the country’s public budget, as a significant number of consumers gamble on unlicensed platforms without being aware of their legal status. This issue is critical because it not only affects the state’s revenue but also poses challenges for regulatory enforcement in the iGaming sector.
The report’s findings indicate that Czech players lose approximately CZK14.5 billion annually to unauthorized operators. This results in a potential loss of up to CZK4.0 billion from the state budget, with CZK2.9 billion to CZK3.6 billion lost in tax revenue, alongside an additional CZK500 million that municipalities are missing out on. The broader financial implications include losses in income tax and contributions to employee-related funds. Aleš Rod pointed out that illegal gambling extends beyond a social problem and poses a significant economic challenge. He emphasized that the uncollected revenue could serve various public interests such as sports, culture, and addiction prevention if retained within the legal economy.
The report further reveals that the profitability of illegal operators allows them to engage in more aggressive marketing strategies, thereby increasing their market share at the expense of compliant operators. This trend is exacerbated by the growing share of the gambling market moving online. Within this context, the capital city of Prague figures prominently due to its ban on slot machines enacted in early 2024, which has unintentionally encouraged illegal brick-and-mortar gambling operations. Inspectors have uncovered several illegal activities in venues where municipalities have banned legal gambling establishments. Petr Čelechovský of Bonver Win, a legally licensed operator in Czechia, expressed concern over the prevalence of these operations, stressing the need for the state to enhance enforcement mechanisms.
There is a growing call within the industry for regulatory reform to curb the black market and support licensed operators. The Institute for the Regulation of Gambling (IPRH) has backed these demands, advocating that the findings from the studies should prompt “effective” government intervention. Jan Řehola, the Director of IPRH, suggested that current enforcement measures fall short and emphasized the need to bolster technological tools for blocking illegal websites and to enhance cooperation with financial institutions. Moreover, raising public awareness about the risks of illegal gambling is crucial.
The effectiveness of existing regulatory measures, such as the national self-exclusion register, also came under scrutiny. The studies noted that over two-thirds of self-excluded players had engaged with illegal operators, occasionally or regularly. Řehola pointed out that the emergence of crypto casinos and the influence of social media have significantly transformed the black market landscape, necessitating updated regulatory frameworks to tackle these developments. He warned that such online environments are often unregulated and attractive to minors, exposing them to gambling activities before reaching the legal age.
As the Czech government considers next steps, the implementation of more stringent regulatory measures and enhanced enforcement strategies are expected to be focal points. An emphasis on technological solutions and public education campaigns appears to be necessary to mitigate the impact of illegal gambling and protect the integrity of the regulated market. The response from policymakers in the coming months will be crucial in determining the effectiveness of efforts to curtail the black market and restore lost revenue to public coffers.