The virtual turn of gamblers has turned into a windfall for Slovakia this past year, with betting activities reaching an astonishing €21.4bn. Confirmation of this surge was provided by Martin Bohoš, director general of the country’s gambling regulatory body, who reported that players received €20.4bn in winnings throughout this period. The state’s coffers did not lag behind, with contributions shooting up by more than €50m on a year-on-year basis, to a voluminous sum exceeding €301m.
A closer look at the composition of the state contributions reveals a significant €93m slice arising from the online levy. The traditional fixed-odds bets were not far behind, as they were responsible for adding €80.48m into the state’s purse. Comparatively, land-based casinos managed to contribute a lower though still substantial €61.9m.
A marked preference for online wagering was evident among Slovaks, with a staggering 90% opting to place bets through digital platforms. However, when it comes to number lotteries, Slovaks appear to cling to tradition; here, online betting represents a mere 14% of activity, with the majority still frequenting land-based venues to test their lottery luck.
The digital dominance in the betting realm has not come without challenges. Bohoš acknowledged the ongoing tussle with illegal online operators that plague the sector. It’s not just an anecdote, as he pointed out that regulators’ efforts towards clamping down on unlawful gambling—especially on technical devices such as quiz machines in pubs and other hospitality establishments—have borne fruit and proven to be “effective.”
This fight against illicit gambling extends to the online realm, with authorities proactively searching for black-market operators. This includes unwanted phenomena like loot boxes in computer games. The Slovak regulator is empowered to impose sanctions on advertising that promotes these illegal gambling outfits.
The discussion on gambling took a critical turn when Bohoš accentuated the potential dangers of certain municipalities pushing to outlaw gambling. His concern was that these restrictive measures could inadvertently funnel players toward the hazardous black market. He called for a broad-based public dialogue on the matter, stating, “I would like this topic to be subject to a wider social discussion, because if someone feels that by banning legal gambling in the territory of a larger city, gambling will be dealt with, yes, legal gambling will be dealt with, but the risks of illegal gambling will remain high.”
In an effort to reinforce regulatory measures, the regulator reported that during the first quarter of 2023 alone, it had conducted a notable 2,511 inspections, which marked an uptick of 201 from the corresponding quarter the preceding year. Inspections in the digital space saw a remarkable 90% increase in comparison to the first quarter of the previous year.
While land-based casinos significantly fed state budget over 2023, the regulator anticipates a potential decrease of up to 22% in their contributions by 2025. This projection is rooted in the prohibitionist regulations exercised by certain municipalities, which wield the authority to either ban or severely limit gambling within their jurisdiction.
Bohoš leveled criticism at Slovak cities and municipalities for their purported lack of concern towards the national gambling agenda. As it stands, sports betting, horse race betting, poker, and casino services are all regulated forms of gambling in Slovakia. Yet, lottery and bingo remain the exclusive domain of the state-owned monopoly provider, Tipos.
The updated gambling laws, effective since 1 March 2019, have opened doors for private operators outside of Slovakia to seek sports betting and casino licenses. While this initiative has seen the light, sports betting licenses only activated on 1 July 2020.
To further establish a regulated environment, the country’s regulator published, in 2022, a whitelist of websites operated by licensed operators within Slovakia. This is part of the broader strategy to maintain a firm grip over gambling activities and ensure compliance with Slovak legislation.
In summary, Slovakia’s betting landscape has witnessed a significant shift towards the virtual realm, supported by impressive financial outcomes for both players and the state. As the country navigates through the complex mesh of regulation and illegal activity, the trajectory of its gambling industry hinges on the delicate balance between freedom of access and stringent oversight.
