A recent study by the Centre for Economic Market Analysis (CETA) in the Czech Republic analysed the extent and effects of black-market gambling across the nation. The report titled Black Market in Gambling in the Czech Republic discovered that illegal operations generated CZK 14.5 billion (approximately €597 million) in Gross Gaming Revenue (GGR) in December 2025.
Czechia Lost Between CZK 3.2 and 3.8 billion in Tax Revenue to Black-Market Gambling in 2025: Key Insights
- Black-market gambling operations in the Czech Republic reached CZK 14.5 billion (approximately €597 million) as of 2025. The figures account for nearly 23% of the legal market in terms of volume. They cost the state between CZK 3.2 and 3.8 billion (between €131 and €156 million) in lost tax revenue.
- The study suggests that illegal betting operators undermine responsible gambling measures. Over 27,000 minors and 89,000 vulnerable adults have played games of chance at unregulated online casinos. Blocking illegal operators would reduce the risk of gambling harm by more than 40%.
- The study recommends strengthening data-driven policies, introducing more flexible and rational regulations, and proactively combating illegal operators for more effective oversight. It suggests leveraging AI to block illicit online casinos and sanction illegal land-based casino owners.
Unregulated Gambling in Czechia Reaches 23% of Legal Market Volume in 2025
Online gambling in Czechia has been on the rise in recent years. While the number of licensed online casinos in Czechia has been growing steadily, unregulated operators have also thrived under the radar. A research paper by Czechia’s Centre for Economic and Market Analysis (CETA), titled Black Market in Gambling in the Czech Republic, highlights the dire situation.
In a press release published on Thursday, December 4, 2025, CETA summarised the findings in the report. The study cites available data and independent research on gambling in the Czech Republic to predict the annual Gross Gaming Revenue (GGR) in the black market in 2025.
Unlicensed gambling operations generated CZK 14.5 billion (nearly €597 million) in GGR in 2025. The figures account for almost 23% of the legal gambling market in terms of volume. Online technical games, video slots, live games and sports betting generate the highest revenue in the black market. Unregulated land-based technical gaming venues also add to the tally.
Illegal gambling has been a significant challenge for regulators in Europe. Earlier this week, Luxembourg introduced a draft law to parliament, proposing amendments to the Gambling Act of April 20, 1997, to improve oversight and streamline enforcement. In December, the Belgian Gaming Commission signed an agreement with DNS Belgium to identify and block illegal online casinos.
In the Czech Republic, online technical games comprise the largest segment of the black market in terms of volume. It generated CZK 7.2 billion (approximately €297 million) in GGR in 2025. This is followed by online odds bets and land-based technical games sectors, which generated CZK 3.2 billion (roughly €132 million) individually in 2025.
Illegal Gambling Poses a Major Threat to Consumer Safety in the Czech Republic
Unregulated gambling operators in Czechia are causing significant economic and social damage. The study finds that legal operators lost annual revenue in the range of CZK 10.6 to 12.7 billion (approximately €437 million to €523 million) in 2025 to black-market gambling services. Meanwhile, the state lost tax revenue in the range of CZK 3.2 to 3.8 billion (approximately €131 and €156 million).
In terms of social harm, black market gambling affects minors and vulnerable individuals. The study reveals that about 27,000 children and adolescents, as well as 89,000 individuals registered in the national self-exclusion register, played games of chance at illegal casinos in 2025. Experts suggest that eradicating black market operations will reduce the risk of gambling harm among Czech consumers by 40%.
The study recommends several measures for countering illegal operations. These include:
- Strengthening data-driven policies
- Introducing flexible and rational regulations
- Systematic long-term data collection
- Close cooperation between the state and licensed operators in threat assessment
- Educating consumers about the risks of illegal gambling
The research emphasises streamlining the process of blocking illegal online casinos. It recommends leveraging Artificial Intelligence (AI) to identify and block unlicensed platforms and sanction the owners of land-based venues that have been reused for illegal gambling activities.
From a legislative perspective, the research recommends lowering the entry barriers for new licensed games, encouraging operators and consumers to practise responsible gambling, and tightening sanctions for systematic violators. It also urges the gambling regulator to migrate from a zero-tolerance policy to a harm-mitigation framework with clear goals and allocate sufficient resources to combat illicit gambling operations.