Bratislava officials voted last week in favor of a full gambling ban within the city’s borders that will see gambling venues gradually close doors upon expiration of their licenses. Gambling opponents have sought such prohibition for years.
The ban will become effective on May 1, 2017. Around 300 gambling facilities, including casinos, will be shuttered over the next four years to 2021, when the last gaming licenses are set to expire.
City officials revealed that the capital of Slovakia is estimated to lose around €3 million in annual tax revenue as a result from the latest gambling-related decision. Bratislava Mayor Ivo Nesrovnal pointed out that the city will find a way to offset the losses the ban will incur, although it is still unknown how exactly this will be done.
Last week’s decision was not received well by all members of the city hall. Some opposed it, arguing that more comprehensive regulations would do more good than a full ban on the provision of gambling services.
The Slovak Gambling Operators Association was also discontent with the decision, pointing out that it may challenge it in court. Operators with operations in the Slovak capital referred to previous decision by the city hall, under which gambling was not to be banned. According to association members, law explicitly prohibits the adoption of two contradictory decisions in relation to one and the same issue.
An anti-gambling petition surfaced back in May 2015 and the recently introduced ban came as a response to concerns voiced in it.
According to gambling analysts, there are two possible outcomes from the current situation. In the first place, companies with gambling operations in Bratislava may develop businesses in other regions around Slovakia. They may also remain in the Slovak capital and operate in a gray zone.
Gray zone here means the replacement of standard slot machines with quiz machines that offer prizes for those who have performed well. This type of offering is not covered by the country’s gambling law, which means that it is neither legal, nor explicitly illegal.
Online Gambling in Slovakia
Slovakia does not have a regulated online gambling market and interested operators do business in an unregulated gray zone. However, it is believed that the country will sooner or later adopt a regulatory framework that will legalize and regulate iGaming and betting options, following suit from neighboring Poland and Czech Republic.
Both countries introduced new gambling regulations this year, making it possible for interested operators to apply for a license. However, both Poland and the Czech Republic may experience certain difficulties in realizing their projects for profitable gambling markets, mainly due to taxation issues. Poland will be taxing operators on turnover and the Czech Republic has imposed a 35% tax on gross revenue. Both rates are a bit too high and may result in many operators avoiding the two regulated jurisdictions.
