Czech Constitutional Court Upholds Fine Against Ostrava for Anticompetitive Lottery Regulation
The Czech Constitutional Court has rejected Ostrava's constitutional complaint against a fine imposed for an anticompetitive lottery regulation, confirming the decision of the Czech Competition Authority.
03.03.2026 | Czech competition authority
The Czech Constitutional Court has upheld a fine of 869,000 CZK against the city of Ostrava for violating competition law through its lottery regulation. This decision follows earlier confirmations from the Regional Court in Brno and the Supreme Administrative Court.
Ostrava's regulation, in effect from January 1, 2017, to May 23, 2018, allowed certain types of lotteries and gambling only at selected locations. The selection criteria were not objective or non-discriminatory, leading to an unfair advantage for some operators.
Initially, the fine was set at 1,078,000 CZK, but the Czech Competition Authority reduced it after determining the infringement lasted a shorter period. Ostrava's attempts to contest the fine in administrative courts were unsuccessful, with both courts agreeing that the city could not regulate gambling in a discriminatory manner.
After losing in administrative courts, Ostrava appealed to the Constitutional Court, claiming violations of self-governance rights and property protection. However, the Constitutional Court dismissed the complaint, stating that the arbitrary selection of locations for gambling operations inherently leads to exclusion of some operators.
This ruling contrasts with a previous case regarding Prague's lottery regulation, which involved a broader regulatory approach. The court noted significant differences, emphasizing that Ostrava's targeted regulation was more prone to discrimination.
