Illegal Gambling Costs Czech Republic Millions in Lost Tax Revenue Each Month
Unlicensed gambling is costing the Czech state millions of euros a month, a new analysis warns.
LISTEN TO THIS ARTICLE:The 2026 Black Book of Illegal Gambling, compiled by sociologist Robert Klobuck of the Sociological Institute at the Slovak Academy of Sciences and supported by economic modelling from the Centre for Economic and Market Analysis, estimates that the Czech Republic is losing more than CZK330 million (around 13.6 million) in tax receipts every month to unlicensed gambling operations.
On an annual basis, the report concludes Czech players hand over roughly CZK14.5 billion to operators outside the country's regulatory reach. That translates into an estimated CZK2.9 and 3.6 billion a year in foregone state tax revenue and as much as CZK500 million a year in lost income for municipalities. Researchers warn the real figure could be higher when secondary effects such as reduced income tax and lower employee social contributions are taken into account.
Scale of The Black Market and Player Exposure
The authors say the size of the black market dwarfs the licensed sector: 27 firms currently hold licences to operate in the Czech market, while the Black Book identified 1,113 brands it considers unlicensed but actively targeting Czech players. The report estimates that about 400,000 Czech gamblers knowingly use unlicensed sites, and a further 400,000 are unsure whether their platform is legal.
Search analytics cited in the report show the three most queried illegal brands were searched more than 111,000 times in a single month from Czech IP addresses, underscoring the visibility of those operators despite regulatory prohibitions. The Black Book also highlights common tactics used by illicit operators, including foreign web domains, complex payment routing through third-country processors and heavy use of affiliate networks and social media advertising to recruit players.
Related: KSA Chair Calls for a ‘Gambling Interpol’ to Tackle Growing Black Market
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Economic Impact and Enforcement Gaps
Aleš Rod, chief executive of the Centre for Economic and Market Analysis, set out the broader consequences in stark terms: "Illegal gambling is not only a social problem, but a fundamental economic problem. This uncollected public revenue obviously has its cost. It could finance sports, culture, addiction prevention, reduce debt, or remain in the pockets of taxpayers if it stayed in the official economy with legal operators. Instead, it ends up in the hands of anonymous operators beyond the reach of Czech authorities in tax havens."
Jan Řehola, director of the Institute for the Regulation of Gambling (IPRH), said tougher enforcement alone will not solve the problem. "Repressive measures alone will not defeat the black market. We need better technical tools to block illegal sites, faster cooperation agreements with banks and payment providers, clearer rules for advertising and affiliate networks, and improved cross-border information-sharing. Only by combining enforcement, financial controls and technology can we protect players and recover public revenue", he said.
The report calls for a raft of measures: improved site-blocking capabilities for internet service providers, tighter controls and reporting obligations for payment processors, faster domain takedowns, and stronger restrictions on gambling advertising targeted at Czech consumers. It also urges closer coordination with EU and regional law-enforcement partners to target operators domiciled in jurisdictions used as tax havens.
The Czech Ministry of Finance, which oversees gambling regulation in the country, has not published an official response to the Black Book as of this article's publication. Industry groups and licensed operators are likely to push for a combination of regulatory and technological tools that would channel player spend back into the licensed market and fund public services such as sports and addiction prevention.
Related: New Study Reinforces Belief That Over-Regulation Increases Black Market Gambling
Policy Options and Enforcement Challenges
Policymakers face technical and legal challenges. Blocking websites can be circumvented by mirror domains and virtual private networks, while payment restrictions require cooperation from banks and non-bank payment providers. Analysts say progress will depend on clear legal mandates, investment in detection technology and international cooperation to disrupt the financial flows that sustain illicit operators.
For now, the Black Book has focused fresh attention on the scale of unlicensed gambling in the Czech Republic and the potential fiscal and social costs. Its authors say a combination of targeted enforcement, technological upgrades and tighter financial oversight is needed if Prague is to recoup lost revenues and reduce the risks posed to Czech consumers.
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