In this two part series we take a closer look into the impact Prague’s new legislations will have on the market and companies operating in the area.
In September, Prague City Council approved two new pieces of legislation which will see all slots, VLTs and gaming terminals in Prague become banned.
As part of the new decree, along with the banning of all mechanical, electromechanical and electronic slots and video lottery terminals in the capital, the Czech Republic Ministry of Finance will be launching a self-exclusion register that is said to allow gamblers to block themselves from all forms of gambling.
SlotBeats spoke to Jakub Kolomicenko, head of legal at Endorphina, on the reasoning behind the decision, the impact of the Czech regulated market and if others could follow Prague’s example.
SlotBeats: Why do you think Prague councillors have decided to completely ban slots within the city?
Jakub Kolomicenko: Interestingly, one of my college friends was one of those councillors who have decided to push the ban and we’ve had a rather heated discussion this agenda.
Allegedly, they’ve decided due to classic reasons, like the protection of minors, vulnerable people, to prevent gambling, etc.
An honourable reason, of course. However, the past has only proved to us that restrictions only increase the demand for unregulated markets.
SB: What are the impacts of these new legislations to operators and developers moving forward?
JK: I would say that in combination with the technical possibilities, the Covid-19 situation, and the accessibility of the internet, the future is moving online for operators, providers and also players.
SB: Does this make the Czech regulated market less appealing to operators outside of the market?
JK: I would have never thought that the regulation could get any worse, but the regulation of gambling in the Czech Republic never ceases to amaze me. The approach to gambling itself is completely wrong.
If the regulator creates restrictions which simply makes the legal market less attractive, they might as well send open invitations to the black market. This is a shame. In this case, no one wins.
SB: Could we potentially see more cities in the Czech Republic follow Prague’s decision?
JK: Gambling is an easy target for all populist governments. It is much easier to adopt restrictions, consider the situation as being solved, and ignore the needs of the market.
So, judging from the way that the politicians are going, I am afraid that other cities may follow so they can say they’ve won the fight against gambling. Unfortunately, there are no simple answers to complicated questions.
SB: What are the financial ramifications for you within the Czech market following the decision?
JK: Well, for us there are none. We have been loyal to the online market since the very beginning.
SB: What are your plans for diversification as a result of the legislation?
JK: As I said, we are strictly online-based. Decisions like this in combination with the Covid-19 situation only confirms that we have chosen the right path.
SB: Is increasing regulation across Europe encouraging more developers to consider emerging markets such as Latin America and Africa?
JK: Yes, this could be the next logical step. But I still hope that regulators will understand that restrictions do not work and will cooperate with the industry to introduce legislation which will be beneficial for regulators, operators, and players.
