Unlawful procedure of gambling permitting

As part of the investigations into the procedure adopted by the Ministry of Finance permitting gambling using so-called other technical gambling facilities similar to the classic gambling machines (particularly video-lottery terminals), I issued a report on my investigation, which I sent to the Minister of Finance. I consider the procedure adopted by the Ministry to be unlawful in a number of respects. In permitting this form of gambling the Ministry has failed to properly apply the provisions of the second part of the Lotteries Act (Law No. 202/1990 Coll., as subsequently amended) and has not respected the generally binding municipal directives regulating the operation of gambling machines. It has also permitted gambling in which the highest stake for one game or the highest hourly loss are in violation of the limits stipulated by the provisions of § 17 Paragraphs 4 and 6 of the Lotteries Act. Moreover, for a certain length of time it failed to ascertain whether the placement of technical gambling facilities does not lead to a violation of the ban on the operation of such equipment in schools, school facilities, social and medical facilities, the buildings of state authorities and churches, as well as in the vicinity of these buildings (§ 17 Paragraph 11 of the Lotteries Act). Although permits for the operation of gambling machines are issued for a maximum of one year (§ 18 Paragraph 3 of the Lotteries Act), the Ministry permitted gambling using other facilities for a period of 10 years or more.

The Minister of Finance de facto rejected my conclusions. It sees no reason for adopting remedial measures and annulling rulings which were issued in contravention of the Lotteries Act. In its rulings on the Interior Ministry’s proposal to annul a generally binding directive issued by the municipal authority of Kladno (File Ref. No. Pl. ÚS 22/11), the Constitutional Court explicitly stated:

“If, however, the Ministry of Finance does not initiate review proceedings in relation to the existing generally binding directive, it is in violation of the municipality’s constitutionally guaranteed right to local government. In these proceedings, as the Constitutional Court has stated in previous rulings, the existence of the permit must be judged with regard to other constitutionally defined principles, but essentially the operators of such facilities must be aware of the existence of the provisions of § 43 of the Lotteries Act, and therefore the fact that this permit may be repealed at practically any time if circumstances arise which preclude the operation of the facilities during the period for which the permit is valid”.

Owing to the Minister of Finance’s refusal, I will be compelled to issue my final statement on the matter, in which I will request the Ministry of Finance to annul all rulings issued in contravention of the Lotteries Act in accordance with the provisions of § 43 of the Lotteries Act.