Starting in 2024, the Czech Income Tax Act introduces updated rules for the taxation of gambling and lottery winnings. These changes affect both Czech residents and expats living in the Czech Republic who participate in any form of gambling or lottery games.
What’s New?
A new CZK 50,000 annual exemption limit has been introduced:
For lotteries and raffles, the limit applies per winning ticket.
For all other types of gambling (e.g., sports betting, online games, slot machines, live games like roulette, poker tournaments), the limit applies to the net winnings for the whole calendar year per game type.
If your winnings exceed the respective exemption threshold, you may be liable to pay personal income tax.
How Are Winnings Taxed?
Lotteries and Raffles
If you win more than CZK 50,000 from a single lottery or raffle ticket:
The operator will automatically withhold a 15% tax before paying out the winnings.
You do not need to report this income in your tax return.
Examples:
You win CZK 80,000 in a lottery. The operator withholds 15% tax (CZK 12,000) and pays you CZK 68,000 net. No further tax action is required.
You win a travel voucher worth CZK 60,000 in a raffle. The organizer adds CZK 10,588 in tax (15%) to your prize value and remits the tax to the tax office. You receive the full value of CZK 60,000, tax included.
Other Types of Gambling (e.g., Sports Betting, Slot Machines, Live Casino Games)
In these cases, your net income is calculated as the difference between total winnings and total stakes for each type of game across the year.
If your net winnings exceed CZK 50,000 for a specific game type, you must report the income in your tax return and pay tax accordingly.
Examples:
You placed CZK 70,000 in sports bets during 2024 and won CZK 130,000. Your net winnings are CZK 60,000—exceeding the exemption limit. You must report and pay tax on this income.
You played roulette and won CZK 180,000, but your total stakes were CZK 150,000. Net winnings are CZK 30,000—below the exemption limit. No need to report or pay tax.
How Do I Know If I Need to Report Gambling Winnings?
Online platforms: Request a statement from the gambling operator showing your total deposits and winnings for 2024.
In-person betting or casinos: It’s advisable to keep your own records of all bets placed and winnings received.
What Should I Do If I Need to Report Winnings?
Calculate your net income for each type of gambling (winnings minus stakes).
If the net amount exceeds CZK 50,000 for any game type:
Include both the total winnings and total stakes in your tax return.
Submit your tax return by the applicable deadline:
April 1, 2025 (paper filing, if you’re not legally required to file electronically)
May 2, 2025 (electronic filing)
July 1, 2025 (if filed by a certified tax advisor)
Pay any tax due by the same deadline.
Final Tips
Always assess each game type separately. For example, your net sports betting and net live casino winnings are evaluated independently.
Lottery and raffle winnings are subject to withholding tax, and each winning is assessed individually—no further action is usually required from your side.
Need help calculating your gambling income or filing your Czech tax return?
Contact us at www.expat-tax.cz – we’re here to make Czech taxes simple and stress-free.