Debates about gambling regulation often follow predictable patterns. Operators argue that politicians make headlines with legislation, while regulators accuse the industry of resisting necessary oversight. Public health experts maintain that commercial interests often conflict with efforts to protect players.
However, an innovative effort is underway in Prague aiming to transform this dynamic. Recent findings indicate that illegal gambling in the Czech Republic is resulting in approximately $15.9 million in lost tax revenue, reflecting a staggering CZK14.5 billion in annual losses for players engaging with unlicensed operators.
The Institute for Gambling Regulation (IPRH) is positioned as a major stakeholder, claiming representation for about 95% of the regulated gambling market in the country. Despite this, Director Jan Řehola emphasizes that the IPRH should not just be viewed as a lobby. Instead, the organization aims to serve as a continuous collaborative platform that unites operators, addiction specialists, economists, regulators, and government officials to formulate evidence-based policies.
The efficacy of this collaborative approach is yet to be determined, but it signifies a broader trend in European gambling regulation: a growing awareness that both governments and operators lack sufficient information to tackle complex issues like illegal gambling and online harm.
A key initiative from the institute, named IRIS, embodies this philosophy.
Modern gamblers often engage with multiple platforms instead of sticking to a single operator. This behavior means operators can only view isolated parts of a customer's activity. "At the core of IRIS is a simple idea," Řehola explains, "We look at gambling from the perspective of the player, not the operator."
What may appear as typical behavior to one operator could actually be a red flag across several platforms, suggesting that a player is accumulating losses too rapidly. Řehola points out, "It makes no sense for one operator to warn a player while another rewards him with a bonus."
IRIS tackles this collective-action problem without implementing a central database of individual gambling histories, a concern voiced by critics. Instead, it utilizes pseudonymized identifiers linked to the Czech state’s licensing system. Operators do not exchange personal information; the platform assesses behavioral indicators across participating operators, categorizes the risk using a standardized methodology, and shares only the risk level with each operator.
Despite the clear framework, Řehola is upfront about its limitations. "I would not present IRIS as a magic solution that works in 100% of cases. Nothing in prevention or addiction risk reduction works like that," he states. What sets this system apart is its capacity for ongoing market-level testing. "The system continuously evaluates the risk scores of players across all participating operators. We can see whether the overall risk level is rising or falling over time, and whether specific interventions influence player behavior."
Success, according to Řehola, hinges not on the number of warnings sent to players but on tangible changes in their behavior: reduced risk scores over time, less rapid escalation, improved limit management, and fewer players moving into high-risk categories.
A critical question arises: Can operators who are fundamentally profit-driven genuinely align with player protection? "I understand the skepticism," he admits. "It would not be credible to pretend that commercial incentives suddenly disappear because we talk about responsibility."
When operators work in isolation on responsible gambling, their efforts might backfire. A responsible operator may cut back on bonuses to intervene with a player, only for the player to shift to a competitor that maintains lax standards. IRIS aims to recalibrate this scenario. By encouraging major operators to collaborate under the same methodology, responsible behavior can become a market-wide norm instead of a competitive disadvantage.
There’s also a long-term business rationale. "Revenue from players who are losing control is not sustainable revenue. It creates regulatory risk and political pressure for stricter regulation," Řehola suggests, asserting that ensuring player retention in a healthy manner may ultimately prove more valuable than pursuing short-term gains.
Another concern involves displacement; if IRIS drives players to offshore or cryptocurrency casinos, has it merely shifted the issue rather than solved it? Řehola acknowledges this risk, stating, "If a responsible-gambling tool in the legal market simply pushes vulnerable players to offshore or crypto casinos, then it has not solved the problem."
IPRH is preparing for this challenge by collaborating with the Ministry of Finance and the Customs Administration to tackle illegal gambling comprehensively. Effective player protection in the regulated market, alongside strict regulations against illegal operators, is essential.
IRIS is intended as a supportive system, not a punitive one. It aims to minimize harmful stimuli—such as aggressive bonuses—specifically for those flagged at higher risk, while allowing other players to engage without interference. "The goal is to guide players back to sustainable gambling levels while keeping them in the regulated environment," Řehola explains.
A concern remains regarding the algorithm used by IRIS; how will it distinguish between problematic gambling and mere wealthier individuals gaming responsibly? Řehola is candid, saying, "This touches upon one of the biggest limitations of any system like IRIS. No system can definitively state: this person is addicted."
IRIS will not make final decisions or impose restrictions on players; it will generate risk signals used for proportionate interventions, such as safer-gambling notifications or information about available support services.
Importantly, IRIS will not simply check if someone gambles heavily. A wealthy individual might spend more while remaining in control, whereas another player could engage in less spending but display concerning behavioral patterns, such as chasing losses or ignoring self-imposed limits.
This methodology is based on extensive research and expert input. Řehola admits that certainty is unattainable: "If it flags too many players who are merely unusual but not at risk, we must adjust it. If it fails to identify players later showing harm, we must make changes as well." The system’s credibility relies on this transparency.
The innovative legal framework supporting IRIS is noteworthy. Rather than developing technology first, IPRH led the charge on legislative changes to facilitate licensed Czech gambling operators' ability to share pseudonymized data for player protection starting 1 October 2025.
"The data cannot be used for marketing or competitive intelligence. It is solely for responsible gambling and player protection," Řehola states.
The unanimous parliamentary approval of this legislative change is duly significant, given the political divisions often seen in gambling policy discussions.
The current landscape of gambling regulation often oscillates between two flawed paradigms: one that assumes commercial interests thwart meaningful self-regulation, and another that believes stringent legislation can resolve the issues emerging in rapidly changing digital markets.
The Czech approach seeks to transcend both. It emphasizes a straightforward premise: informed regulation relies on data spread across all stakeholders, acknowledging that no single group has the complete narrative.
Řehola describes this philosophy as "smart regulation, not symbolic regulation." While he refrains from overestimating the broader applicability of this model—considering each jurisdiction's unique legal and market contexts—he believes the principles of collaboration, robust data utilization, and a commitment to measurable outcomes can be universally adapted.
The ultimate impact of IRIS on gambling harm reduction remains uncertain. Řehola is clear that if the data does not support its effectiveness, the model must evolve. This discretion may represent one of its most credible characteristics.
