Czech Lottery Owner to EU: Gambling Tax Is Unfair

Czech lottery Sazka Group AS, owned by businessman Karel Komarek (l.), is asking the European Commission to investigate a new tax on lotteries that allegedly unfairly grants a state subsidy to other gaming services.

Czech lottery group, Sazka Group AS, owned by Czech billionaire Karel Komarek, has appealed to the European Commission to investigate a tax on lotteries that it claims unfairly grants a state subsidy to other gaming services.

In a statement cited by Bloomberg News, Sazka said it has asked the EU’s state aid unit to rule against a 35 percent tax on lotteries introduced in January, which it says puts betting and casino games that pay 23 percent in a more favorable financial position.

The Brussels-based commission said it will assess Sazka’s complaint.

The Czech Finance Ministry claims the differing tax structure is neither discriminatory nor illegal form because different gambling services don’t directly compete. EU governments also have the right to set different rates for each type of tax, including selectively, it added.