Slovakia’s government has submitted draft reforms to the European Commission that will open up the country’s remote gaming market to private operators.
The Ministry of Finance, which will oversee the newly regulated industry, said it wants to “relax restrictions on access to the internet gambling market” and allow companies with a base in Slovakia or another EU state to apply for licensing.
It’s a significant turnaround for the Central European nation, which has operated under rules dating back to 2005 that have resulted in the black-listing of more than 200 gambling domains, including major names like 888 and Bet365, in order to preserve a monopoly on online casinos and poker held by the state-owned national lottery, TIPOS.
“Experience from abroad shows that if the state wants to intervene against tax evasion and illegal gambling, it must go through the liberalization of the market and the setting of fair conditions, inter alia, to motivate operators to operate legally,” said Peter Papanek, head of the Association of Betting Companies of the Slovak Republic. “Illegal companies thus lose the incentive to circumvent the rules, and the state, in addition to income, also gains the certainty of consumer protection. The countries that have chosen liberalization have rapidly reduced the share of the black market.”
The legislation provides for a 23 percent tax on revenues and other fees and sets up a Regulatory Office for Gambling under the Ministry of Finance to handle licensing, supervision and enforcement.
The commission has three months to review the bill to ensure its conformity with EU law.
