PokerStars Exits Czech Republic After Regulatory ChangesCompany Surrendering License This Month |
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As the Czech Republic sees online poker regulatory changes, PokerStars announced last week that the company was leaving the market. Stars will surrender its license by June 20 and fully leave before the new regulations take effect on July 1.
The move comes after changes to online gaming regulations were announced in January. The new laws were meant to revamp the current online gaming landscape to be faster and more effective. However, some operators are opposed to some of the changes, which include a larger burden on online gaming sites to restrict problem gamblers and a rise in the tax rate on operators.
The new laws also open up a wider range of what is considered “illegal gambling” and makes government investigations easier.
“The current amendment extends the definition of online gambling to all situations where the game is simply available in the territory of the Czech Republic,” international law firm DLA Piper noted in February. “This potentially enables the regulator to investigate and pursue a much wider array of online services as illegal gambling operations and impose sanctions on them.”
Rising Tax Rate
The new laws give the government the power to block what regulators may see as illegal gambling sites. The tax rate for live games, bingo, odds betting , live betting, horse race wagering, raffles, and “small-scale” poker tournaments was also increased from 23% to 30% of gross gaming revenue (GGR).
PokerStars, which entered the Czech market in 2017, didn’t outline the regulations causing the company to leave the market. But all real-money poker and online casino play will come to an end in the country on June 20.
Deposits also began being restricted on June 6 and all player balances must be withdrawn by the license surrender date.
“PokerStars has no current plans to re-enter the Czech Republic market,” the company said in a statement. “For players with inquiries regarding bonuses, tournament entries, or live events, the company assures refunds and accommodations where applicable.”
The changes leave players with only two regulated online poker options, including Fortuna Poker, which is part of the iPoker network.
The Czech Republic has been a bit of a poker hotspot over the last several years, regularly hosting live poker series. That has included the World Series of Poker Europe, which is once again scheduled in the country this year at King’s Casino from Sept. 18 to Oct. 9.
Several players from the country have also found some major success as well. For example, in March Roman Hrabec won the $100,000 buy-in Triton Super High Roller Series main event in South Korea for $4.3 million.
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