Gambling business in Slovakia

The gambling business in Slovakia is allowed and organized at a fairly high level. Almost all forms of gambling have been legalized in the country since 1992. Anyone over the age of 18 can play in both land and online casinos. All land and online casinos are controlled by the Ministry of Finance (Ministerstvo financií Slovenskej republiky), which maintains a clear list of all gambling establishments and issues licenses. All operators are subject to a mandatory income tax with a 19% gambling profit. All legal frameworks for the regulation and control of the gambling business are defined in the Law on Gambling (No. 171/2005). There are currently four main operators in Slovakia:

• Casinos Slovakia;
• CBG (Admiral Casino);
• Casino Banko;
• Olympic Casino Slovakia.

Also, lotteries are held on the territory of the state, a bookmaker works. Slot machines can be found almost everywhere here: in bars, cafes, bars, shops. Monopolization of the gambling business in Slovakia is out of the question.

As for online gambling, it is formally legal. Virtual gaming establishments are also controlled by the Ministry of Finance.

Laws regulating the gambling business in Slovakia

The gambling business in Slovakia is regulated by the Law on Gambling (No. 171/2005). According to this law, the following types of games are allowed in the country:

• Lotteries;
• Casino games;
• Placing bets;
• Slot machines;
• Video terminals for lotteries;
• Online gambling;
• Casino card;
• Charity lotteries.

The main purpose of the current legislation is to create clear rules and regulations that describe the rights and responsibilities of gambling operators and the players themselves. The Law on Gambling (No. 171/2005) regulates:

• The conditions for the implementation of gaming entertainment, their promotion and also sets out the rights and responsibilities of operators and players;
• Terms of use of technical equipment intended for gaming entertainment;
• Some conditions of the National Lottery Company;
• Competence of public authorities and municipalities;
• State supervision over the organization and conduct of gambling, as well as their promotion.

Under Slovak law, only persons under the age of eighteen are eligible to participate in gambling. Operators, in turn, are required to take all necessary measures in accordance with the age restriction (for example, to require identification documents). The law also sets the maximum deposit amount for slot machines - 1000 SKK (10 euros).

Amendments to the Gambling Law, signed by President Andrei Kiska, came into force in January 2017. Under the new legislation, the country will keep registers of people diagnosed with gambling addiction, as well as those who receive social assistance from the state. The purpose of the registers is to prevent these citizens from playing in casinos and other gambling establishments.

Another important change made it possible to ban gambling in certain cities and villages if it was supported by 30% of the population (the threshold for large cities was reduced to 15%). Also, the updated legislation expanded the powers of the financial regulator of the gambling industry and attracted customs authorities for oversight.

Regulators of the gaming industry

The regulatory body responsible for controlling, licensing and taxing the gambling business is the Ministry of Finance. Members of the Ministry of Finance have the authority to approve legislative changes and introduce new rules of the game. Also, gambling regulators include:

• The Financial Directorate of Slovakia (Finančné Riaditeľstvo slovenskej Republiky) operates the information system operator in the field of gambling services, as well as maintains a centralized register of operators and gambling houses and transmits this data to the Ministry within three days of receipt;
• Tax Service - implements taxes paid to the state budget and also ceases to pay financial guarantees to applicants and operators. Also, the tax service has the right to apply fines in accordance with the applicable gambling law;
• Customs authorities - control the observance of the provisions of the Law on Gambling and other general conditions for the conduct of gambling-related operations.

Terms of obtaining a license in gambling jurisdiction

There are two types of licenses in Slovakia: general and individual. Individual licenses include licenses for the following activities:

• Lottery;
• Casino entertainment;
• Bet;
• Online casino games;
• Slot machines;
• Lottery video terminals;
• State Lottery;
• Charity lottery.
• A license can be issued only to a legal entity registered in the territory of the state. You must apply for a license. In this case, the registered capital of the applicant should not be less than:
• 331.9 Euros - for cash and instant lottery;
• 66.3 Euro - for playing bingo;
• 66.3 Euro - for slot machines;
• 331.9 EUR - for betting;
• 331.9 Euros - for gambling controlled by technical equipment, operating directly by telecommunication equipment and for video lottery terminals;
• 1 659,6 EUR - for casino games.
• Application for a license must include:
• Company name and its legal address;
• Identification number, if it has already been assigned to the applicant;
• The amount of authorized capital;
• A list of partners or shareholders, possibly their recipients, which should include all information about the company’s shareholders and partners;
• Information on the voting rights of the shareholder or partner holding more than 10% of the voting rights in another company, including companies located outside the territory of the Slovak Republic;
• The names, surnames and dates of birth of the person on the board of directors, the supervisory board, the executives, as well as the person responsible for the operation;
• Territorial scale and location of the operation;
• A description of the technological equipment used in the operation of the video lottery and telecommunications equipment for conducting games;
• Description of other equipment and systems;
• Estimated start date and time of the game.

The applicant must also prove the legal origin of the authorized capital and financial resources that constitute the financial guarantees. The plaintiff must attach the following documents to the application for an individual license:

• Extract from the commercial register (no later than three months from the date of application);
• Charter;
• Project of the applicant's organizational structure;
• Business project and financial plan of activities;
• A written statement from the partners or shareholders that their property is not bankrupt;
• Documents certifying the good faith of the applicant and the persons responsible for managing the games;
• Game plan (in such a way that after its approval, it can be placed on the playing field);
• Applicant's declaration of measures to prevent persons under 18 years of age;
• Document confirming the payment of administrative fees in accordance with special regulations;
• Confirmation from the tax authority on the payment of the full amount of the financial guarantee;
• Documents on technical evaluation of equipment and systems;
• Confirmation from the tax authority that the applicant has no tax debt.

 

Periods of individual licenses:

• Two years - for instant lotteries;
• Five years for betting;
• Five years for bingo;
• One calendar year - for slot machines;
• Two years - gambling, which is controlled using technical equipment and video lottery terminals;
• Five years - for the state lottery;
• Two years for casino games;
• Five years for charity lottery.

Online gambling in Slovakia

Online gambling is legal in Slovakia. In addition, it operates under the control of authorized state bodies - the Ministry of Finance. To run a website that provides online gambling, a subject must obtain the appropriate license.

By law, licenses are issued only to companies operating in the country. Their servers must also be located in Slovakia. The only legal online casino is TIPOS Casino. This operator offers:

• Online lotteries;
• Keno;
• Casino games;
• Poker

There are also several legal sports betting sites (e.g. ifortuna.sk) and the only online bingo platform (eBingo). In 2016, the government announced that it would block all unlicensed online casinos and betting sites. However, it is known that the government has not yet issued an official license to open online casinos for local companies.

As for foreign online casinos, they are quite often blocked by providers ordering state services. It is very difficult for foreign companies to obtain a license, but this does not prevent Slovak players from playing sports freely and playing in virtual casinos on unlicensed sites of foreign operators. The current legislation does not provide any provisions restricting the access of players to these Internet sites.

Currently Slovak players are ready to receive 183 online casinos that play in Slovak and English. These sites accept bets in both the Slovak national currency - the euro, as well as the US dollar. Popular slots in Slovakia:

• Mega Mula from Microgaming;
• Book of Grintub Ra
• Starburst from NetEnt;
• Mega Joker from NetEnt;
• Sizzling Hot Deluxe by Greentube.
• Slovak software developers

 

Only two Slovak gaming developers are known: Evona Electronics Ltd. And XproGaming.

Evona Electronics Ltd - specializes in electronic products for the gaming industry. The company has been operating in the market since 1992 and over time it has become one of the largest and most important among other toy manufacturers. The company's numerous branches and commercial offices are based not only in Slovakia but all over the world. Evona Electronics Assortment Ltd. till today:

• High quality multi-user electronic roulettes;
• Various slot machines;
• VLT;
• Terminals for sports betting.

The company offers innovative and highly efficient casino management systems, as well as gambling furniture, promotional materials and much more. Thus, "Evona Electronics" Ltd. provides operators with one window for their services (starting with the smallest clubs, gambling rooms in the largest casinos);

XproGaming is a popular provider of popular live dealer gaming. The company has been operating in the market since 2005 and today it provides a wide range of services. Its catalog contains lots of popular toy fun, including:

• Black Jack;
• Roulette (European and "dragon");
• Three types of baccarat;
• Texas Hold'em;
• Caribbean Poker;
• sic bo (Classic Asian dice game).

The company also specializes in the production of mobile live games. These apps are optimized for almost all types of smartphones and tablets.

XproGaming uses the latest technology to build its software. No need to download apps. The company offers ready-made solutions for online casino operators: it develops a website (according to customer requirements), connects it directly to streaming, sets up a back office and a payment gateway.

Prospects for the development of the gambling business in Slovakia

Slovakia has a fairly liberal and at the same time effective policy towards gambling. After many residents are interested, the government decided not to ban them but to develop gambling. This, according to their predictions, will prevent the emergence of illegal gambling establishments. Therefore, the government has legalized everything, even the smallest gambling clubs in the country that used to be in the shadows. Thus, this industry started to bring in good revenues due to tax cuts in the state budget (19% of revenues from each institution). In 2016, a majority of citizens of the Slovak Republic voted in favor of a complete ban on gambling in the state. However, so far no measures have been taken to enforce this ban. At the moment, the government is more focused on the fight against unlicensed online casinos, as well as gambling addiction.