Combating Illegal Gambling: Czech Regulator Calls for EU Cooperation

The European gambling landscape is facing a major test as the boundaries between legal and illegal offerings increasingly blur due to technological progress. Tomas Bures, who has been deeply involved in Czech gambling regulation since 2020, paints a clear picture of the current situation. While the number of licensed operators in the Czech Republic has stabilized at around 50 companies, gambling activities are shifting more and more into the digital space. This trend was massively accelerated by the pandemic, when land-based gaming halls had to close and many consumers moved permanently to the internet.

The threat from the black market has reached a new quality. Illegal actors are now using artificial intelligence to clone legitimate websites within a very short time or to create so-called mirror websites. This brand spoofing deceives players by suggesting a security that does not factually exist. Bures emphasizes that the fight against this shadow economy can no longer be a purely national task but requires a concerted action at the European level to ensure consumer protection and the integrity of licensed markets.

Numbers and facts

A central pillar of the Czech system is the Register of Excluded Persons introduced in 2020. This register is one of the strictest tools in the country's regulatory toolbox. Currently, the list includes approximately 300,000 people. Of these, around 80,000 players have registered voluntarily to protect themselves from the dangers of gambling addiction. The remaining entries are based on statutory criteria such as insolvency, receipt of certain social benefits, or court orders.

Another innovative tool is the so-called Panic Button, which has been mandatory since the reforms in 2024. This button has already been pressed around 130,000 times by players. The special feature of the Czech system is the direct link to the national exclusion register. As soon as a user presses the button with one provider, they are automatically blocked for 48 hours from all licensed operators in the country. This prevents so-called platform hopping, where vulnerable players simply switch to the next provider after a block.

Background

The Czech gambling reform of 2024 not only strengthened player protection but also massively expanded the Ministry of Finance's powers to block illegal content. While it was previously often difficult to take action against intermediaries, today affiliate websites and mobile applications that direct players to unlicensed platforms can also be blocked. Bures sees website blocking as one of the most effective means, but admits that payment blocks reach their limits with cryptocurrencies.

"Illegal online gambling is a challenge that affects all jurisdictions, regardless of their regulatory framework." - Tomas Bures, Regulatory Expert

The discussion also revolves around the role of artificial intelligence on the part of regulators. In the Czech Republic, there is not yet a legal obligation to monitor player behavior using algorithms, but a voluntary initiative called Responsible Gambling is showing initial success. In this, operators share information about risky gambling behavior across platforms to identify problems early. For the year 2027, it is also planned to expand the criteria for the exclusion register to better protect people with unpaid debts in enforcement proceedings.

Why it matters for German players

For German players, the Czech experience is an important indicator of the effectiveness of national regulations. The German State Treaty on Gambling 2021 pursues very similar goals to the Czech model with the LUGAS system and the OASIS blocking file. In Germany, too, player protection is strictly regulated by the deposit limit of 1,000 euros per month and the stake limit of one euro per spin for online slots. The challenge remains channelization. If legal offers lose their attractiveness due to rigid limits, there is a risk of migration to MGA or Curacao providers who do not adhere to German laws.

Players in Germany should ensure they only play with providers on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). Only there do the legal safeguarding mechanisms such as the Panic Button or the comparison with the OASIS file take effect. Anyone playing with unlicensed providers not only exposes themselves to the risk of fraud but also loses any legal protection in disputes over payouts or data protection violations.

What it means for GGL-licensed casinos

For operators with a GGL license, developments in neighboring countries like Czechia mean that regulatory pressure and technological requirements remain high. The GGL, like the Czech Ministry of Finance, must constantly refine its tools for combating the black market. The use of AI to identify illegal offers and the blocking of payment flows are also essential for the German market to guarantee fair competition. Licensed casinos bear high compliance costs, which are only justified if the state takes effective action against illegal competition acting without taxes and player protection.