Czech police investigate Finance Minister for taking gaming bribes

Czech Republic

Czech RepublicAnti-corruption police in the Czech Republic have launched an investigation of Finance Minister Miroslav Kalousek following allegations that he accepted bribes in exchange for online gaming licences in 2008. Prior to 2008, Czech firms were prohibited from offering gambling services online, while sites operating from other European jurisdictions such as Malta and Gibraltar freely served the market.

According to the Czech Position, the police anticorruption unit launched an investigation several days ago into allegations that Penta co-founder Marek Dospiva paid millions of crowns to Finance Minister Miroslav Kalousek to grant Czech companies permission to provide odds betting services over the Internet. The equity group’s assets include the bookmaker Fortuna, which had been trying in vain for a license to offer services online.

Just under three years ago, Kalousek issued 10-year licenses for Fortuna (owned by Penta), Sazka, Synot Tip, Tipsport and Chance to offer online odds betting. The move was wholly justified by Kalousek who made the obvious and true argument that because the Czech state had no powers to control or tax gaming companies which are registered in other EU countries; foreign firms were already offering odds betting over the Internet to Czech customers which was putting Czech firms at a disadvantage.

The Czech police have decided to launch a full investigation: “We are verifying allegations of the crime of abuse of office by a public official, acceptance of a bribe and also offering a bribe,” anticorruption unit head Tomáš Martinec told the daily Právo, adding that criminal proceedings have been launched.

According to the Czech daily Právo, both Kalousek and Dospiva have categorically denied the allegations.