The legal system of the Czech Republic takes the form of a civil law state and the Constitution of the Czech Republic proclaims it as a unitary state divided into eight administrative regions.
Act No 202/1990 Coll. on Lotteries and other similar Games regulates in a uniform way the gambling industry. A Lottery or other similar Game is a game, in which any physical person, who paid a deposit (wager), the return of which is not guaranteed to the participant, may take part in on voluntary basis. The win or loss is by the virtue of a random chance or any circumstance or event unknown beforehand, which, however, is specified by the operator in advance in the game terms and conditions (referred to as the “Gambling Scheme” henceforth). It does not matter whether the game is played with the use of mechanical, electromechanical, electronic or other devices.
The circumstances determining the winnings (the outcome of the drawing of lots, sport matches, horse races or other events to be run) may not be known to anyone in advance and they must be of such nature that they cannot be influenced by either the operator or the bettor.
The probability of winnings, with raffles,cash and merchandise lotteries and with instant lotteries may not be less than 1 : 200.
Lotteries and other like games of chance that do not meet the conditions specified in the Act No 202/1990 Coll. on Lotteries and other like Games may not be licensed.
A lottery and other similar game of chance are according to the paragraph 1 of the Act on Lotteries and other similar Games all games in which players become entitled to a cash prize or other prize of pecuniary value in return for paying cash or providing pecuniary value, in case definite conditions occur. Winning or losing exclusively depends on chance.
A consumer lottery shall be deemed a contest, survey and any other activity for prizes, where the operator undertakes to pay the participants, determined by a draw or some other random selection method, prices in cash, deposit books, securities, insurance etc., and real estate, and in which the participation is conditional upon purchase of specific goods, services, or buying some other product and documenting the purchase to the operator, or entering into a contract relationships with a provider of goods, services or some other product, or participation in a promotion or advertisement events organised by the provider or operator, also indirectly through a third party (hereinafter “consumer lotteries”). Consumer lotteries shall also include contests, surveys and other activities for prizes in which the operator, under the aforementioned conditions, undertakes to provide to the participants performance in kind, services or prizes comprising goods and products, etc., provided the (approx. 7.150.- €) in any calendar year and the value of a single prize exceeds the amount of 20,000.- CZK (approx. 715.- €). Contests, surveys and other activities for prizes mentioned above, organised by a single operator, in which the sum total of in-kind prizes in a given calendar year does not exceed the amount of 200,000.- CZK (approx. 7.150.- €) and the value of a single prize does not exceed the amount of 20,000.- CZK (approx. 715.- €) shall be reported to the financial office of jurisdiction.
The Act No 202/1990 Coll. on Lotteries and other like Games understands under lotteries and other like games mainly:
a) Money lotteries or lotteries for prizes in kind, with which a given number of tickets bearing serial numbers are issued by the operator according to the Gambling Scheme. If the tickets are divided into a number of series, then each series must include the same number of lottery tickets and each ticket must bear the indication of both the serial number and the series. The sale price of the ticket of each series must be the same in every series. All tickets, which have been issued, are included in the drawing.
b) Tombolas are games in which only the tickets that were sold are included in drawing. The tickets are sold and the prizes are given on the day and at the spot of the drawing.
c) Numerical lotteries, with which neither the number of participants nor the amount of game surety is specified beforehand, while the amount of game surety is taken as the multiplication of the issued tickets and the sale price per one ticket. The prize is calculated from the number of winners and the aggregate deposits (wagers) by means of a ratio determined in advance, or alternately, it can be calculated by means of a multiple of the deposit (wager), according to what number of digits were guessed by a participant from the limited number of digits that was drawn according to the Gambling Scheme.
d) Instant lotteries with which a participant learns whether it won or not after it removes the indicated cover of a particular box of the lottery ticket or lot (which is covered by the time of purchase) forthwith after it is purchased.
e) Betting games that are operated be means of electronic or electromechanically controlled gaming machines or other like devices (referred to as the “gaming machines” henceforth).
f) Betting games, with which the prize winning is conditioned by the successful guess of the outcome or scores of sport competitions, races, and the amount of the prize depends on the ratio between the number of winners and the total amount of the deposit (wager) and the prize ratio that is set in advance.
g) Betting games operated with the use of a special type of tokens bearing the combination of fifteen digits in the numerical series from one up to ninety, while neither the number of participants nor the game surety amount is known in advance. The drawing of lots takes place in the public with the use of a mechanical device and it consists in the gradual drawing of lots with digits from one up to ninety. The prize is calculated from the aggregate amount of deposits – accordingly to the type of the winning, and in each round in dependence on the outcome of the drawing of lots. The terms and conditions of game are set forth in detail in the Gambling Scheme.
h) Betting games, with which the prize winning is conditioned by the successful guess of the outcome or scores of sport competitions, races, or the successful guess of the outcome of other events of public concern providing the bets on such event is not in defiance was taken and the wager amount.
i) Betting games operated in gambling parlours specifically established for this purpose (casinos) including those operated with the use of mechanical devices (such as a roulette) with which neither the number of participants nor the wagered amounts during any one run of the game is not known beforehand. The prize is calculated from the deposited amounts or according to the terms and conditions that are set forth in the Gambling Scheme.
j) Lotteries and other like games that are run by means of the technical devices operated directly by the bettors or operated via the telephone, while neither the number of participants is determined in advance nor the amount that was wagered is known beforehand. The prize is calculated from the deposits according to the terms and conditions that are set forth in the Gambling Scheme.
k) Betting games in which a win depends on guessing the order in which racehorses arrive at the goal post and the win depends on the proportion of the winners to the sum total of collected bets and the proportion of wins determined in advance, or the win is proportional to the odds at which the bet was made and the amount of the bet.
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