Black Market Gambling Costs Czechia $15.9m a Month in Lost Tax Revenue.

The Czech Republic is losing more than CZK330 million (approximately $15.9 million) in tax revenue every month due to illegal gambling activity, according to new research examining the scale and impact of the black market.

The findings are outlined in the 2026 Black Book of Illegal Gambling, compiled by Robert Klobuck of the Sociological Institute at the Slovak Academy of Sciences, alongside economic analysis conducted by the Centre for Economic and Market Analysis under executive director Aleš Rod.

The report estimates that Czech players lose around CZK14.5 billion annually to unlicensed gambling operators. This translates into a direct loss to public finances of between CZK2.9 billion and CZK3.6 billion in gambling tax each year, alongside an additional estimated CZK500 million in lost municipal revenue. Researchers warned that the true cost could be higher once lost income tax and employee contributions linked to illegal gambling activity are taken into account.

Rod described illegal gambling as both a social and economic issue, arguing that uncollected revenue could otherwise be used to fund sport, culture, addiction prevention, or reduce public debt. Instead, he said, profits are diverted to anonymous operators based outside the reach of Czech authorities, often in tax havens. He added that higher profitability allows illegal operators to market more aggressively and steadily increase market share as online gambling continues to grow.

Hundreds of thousands using illegal sites.

One of the report’s key concerns is the number of consumers exposed to illegal gambling. Researchers estimate that around 400,000 Czech players knowingly gamble with unlicensed operators, while a further 400,000 are unable to determine whether the platforms they use are legal or illegal.

Data cited in the report show that the three most popular illegal brands were searched for more than 111,000 times from Czech internet users in a single month. By comparison, the country currently has 27 licensed operators, while authorities are aware of more than 1,100 illegal brands actively targeting Czech players.

Industry figures have warned that the scale of illegal activity highlights the need for stronger enforcement measures. Concerns are not limited to online gambling, with inspections uncovering illegal land-based operations, particularly in areas where municipalities have banned legal gambling venues. Prague’s blanket ban on slot machines, introduced in early 2024, was cited as an example where illegal activity has continued to surface.

Calls for regulatory reform.

Industry bodies have called for changes to the regulatory framework, arguing that existing measures are insufficient to combat the black market. Proposals include strengthening technological tools to block illegal websites, improving cooperation with banks and payment service providers, and increasing public awareness of the risks associated with unlicensed gambling.

The report also raised questions about the effectiveness of the national self-exclusion register. Researchers found that more than 66% of users who had previously self-excluded from legal online gambling had still played with illegal operators either occasionally or regularly.

Emerging trends such as crypto-based gambling platforms and gambling promotion through social media were highlighted as further challenges for regulators. Authors warned that these channels often operate beyond effective oversight and may expose children and young people to gambling before they reach legal age.

The findings have renewed pressure on policymakers to revisit the country’s approach to gambling regulation, with industry and research groups urging coordinated action to protect consumers, support licensed operators and safeguard public revenues.