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Gambling law and barriers in Slovakia

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Taxes

Operator of a gambling game must pay beneficial tax, which amount is as follows:

– for ticket lotteries 15 % of the financial guarantee to the state budget. Financial guarantee must be kept by the operator of a gambling game during the whole period of validity of the license at the minimal amount set by the Law: Minimum financial guarantee is as follows

  • – for ticket lotteries and raffles 5 % of the sum calculated as the product of the number of tickets issued and price of one ticket,

  • – for bingo, with the exception of special bingo, SKK 500,000 (approx. 13.500.- €) for one operation of bingo,

  • – for betting games except for course bets, SKK 1,000,000 (approx. 27.000.- €),

  • – for course bets, SKK 10,000,000 (approx. 270.000.- €),

  • – for gambling machines, SKK 10,000 (approx. 270,- €) for each machine,

  • – for gambling games in a casino, SKK 15,000,000 (approx. 405.500.- €),

  • – for gambling games operated by means of technical equipment operated directly by gamblers or operated by means of telecommunication equipment, and video games SKK 3,000,000 (approx. 81.100.- €).

– for raffles 15 % of the sum calculated as the product of the number of tickets issued and price for one ticket to the state budget,

– for number lotteries 17 % of the financial security to the state budget,

– for instant lotteries 20 % of the sum calculated as the product of the number of tickets sold and the price for one ticket, minus the total amount of pay-off during the whole period of instant lottery ticket sales, to the state budget,

– for betting games, except for horse racing, 5 % of the financial guarantee, while in the case of course bets 4.5 % of the financial guarantee to the state budget and 0.5 % to the town budget,

– for bingo 4.5 % of the financial guarantee, of which 4 % of the financial guarantee to the state budget and 0.5 % of the financial guarantee to the budget of the town in which the bingo game room is located,

– for special bingo 4 % of the financial guarantee to the state budget,

– for horse racing 1 % of the financial guarantee to the state budget,

– for betting games in a casino 27 % of the financial guarantee, of which 24 % of the financial guarantee to the state budget and 3 % of the financial guarantee to the budget of the town in which the casino is located,

– for gambling games operated via gambling machines SKK 45,000 (approx. 1.216 €) per calendar year and per machine to the state budget,

– for gambling games operated via technical devices operated directly by gamblers and for video games 27 % of the financial guarantee, of which 24 % of the financial guarantee to the state budget and 3 % of the financial guarantee to the budget of the town,

– gambling games operated via telecommunication devices, 10 % of financial guarantee to the state budget,

– gambling games operated on the internet 27 % of the difference between accepted bets and pay-offs to the state budget.

In the case of gambling games that are not mentioned above, the amount of tax will be set by the ministry of finance. When doing so, the ministry must take into consideration the tax amount set out above for the game that resembles the most the gambling game for which the tax is being evaluated.

Income from the beneficial tax is used to finance public services, for example healthcare, social work and assistance, humanitarian care, production, development and protection of cultural heritage, support for art and cultural activities, education, development of sport, environment protection and public health.

The town administration that issued a license for operating gambling games in the form of gambling machines and that subsequently revoked the license can decide that after the tax liability is fulfilled and beneficial tax is paid by the operator of gambling machines, the earnings from gambling will be contributed to the budget of the town, the same decision can be made in the case of natural person or legal person that has operated gambling machines without license and the town would have been able to issue the license. Ministry that issued or granted a license and subsequently revoked it, can decide that earnings from gambling games will be contributed to the state budget. Earnings from gambling mean the difference between bets placed by gamblers during the year and pay-offs.

The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. The standard 2005 corporate tax in Slovakia is fixed at 19%.

LISTING

LEGISLATION ENACTED

The Act of March 16, 2005 on Gambling Games and on Amendment and Supplement to Some Acts No. 171/2005

– Money Laundering Act – Zákon o ochrane pred legalizáciou príjmov z trestnej činnosti a o zmene a doplnení niektorých zákonov č. 367/2000 Z.z.

– Decree of Ministry of Finance concerning certain requirements in connection with gambling activities – Vyhláška Ministerstva financií Slovenskej republiky č. 463/2000 Z.z z 15. decembra 2000, ktorou sa ustanovujú podrobnosti o spôsobe a obsahu oznámenia prevádzkovania súťaží, ankiet a iných akcií o ceny, ktoré sú spotrebiteľskými lotériami

– Tax Act – Zákon č. 595/2003 Z.z. zo 4. decembra 2003 o dani z príjmov

– Act No 71/1967 Coll. on Administrative Procedure

– Act No. 48/2002 Coll. on the Residence of Foreigners

BARRIERS

Panorama

According to the Act No. 171/2005 Coll. on Gaming Games an operation of foreign gambling games on the territory of Slovakia is prohibited. Also individual sale of lots, taking bets and payout of winnings, including mediation of such activities, the operator of which is a foreign entity and during which the stakes are paid abroad, are prohibited on the territory of Slovakia (Section 3/7 of the Act).

A gambling games license may be granted or issued only to a legal person with a registered office on the territory of Slovakia. If legal persons with foreign property participation are concerned, a license may be granted or issued only to a legal person with foreign property participation with the registered office or permanent residence in a member state of the European Union or a member state of the Organization for Economic Cooperation and Development (Section 17 of the Act).

An application for granting an Individual License may be filed only by a joint-stock company or limited-liability company, if the application is filed by a joint-stock company, its shares must be issued as registered shares.

The national lottery company is a joint-stock company based in the territory of Slovakia whose founder and shareholder is Slovakia. The trade name of the national lottery company must contain the identification «national lottery company» or the abbreviation «n.l.s.» The identification «national lottery company“ or its translations must not be used by any legal person or natural person. Any transfer of shares of the national lottery company to other legal persons or natural persons is prohibited (Section 52 of the Act).

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