CZECH

Czech Republic wins in CZK 7 billion online roulette case

The Municipal Court in Prague upheld the judgment of the District Court for Prague 1 of December 2019, according to which the Czech Republic succeeded in the CZK 7 billion dispute with CASINO KARTÁČ Group. The internet roulette operator demanded compensation from the Ministry of Finance on the grounds that it had lost its profit, as the Ministry of Finance, which decided on the company’s application in 2006, did not grant permission to operate roulette via the internet. Today’s decision of the Court of Appeal represents the final conclusion of this chapter, which lasted more than 5 years.

“I would like to thank the internal team of line lawyers who, with their persistent work, averted this threat to public finances,” says Finance Minister Alena Schillerová.

Already in 2015, the District Court for Prague 1 dismissed the action on the grounds that the amount claimed was only a hypothetical income. The company also failed at the Municipal Court in Prague, which pointed out in particular that the company itself withdrew its application for a permit to operate online roulette during the administrative proceedings. However, the Supreme Court of the Czech Republic annulled the decision of the lower courts and returned the case for a new hearing, stating that it is necessary to examine whether the company has not had a legal right to issue a permit. Therefore, the district court had to reconsider whether the ministry had not committed maladministration and whether the company had suffered any damage.

After a detailed examination of the case, the District Court came to the conclusion that the Ministry of Finance acted in accordance with the law in 2006, as there was no legal right to issue such a permit and dismissed the lawsuit. The Court of Appeal today upheld the decision that there had been no maladministration by the Ministry of Finance.

 

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