Poland Prepares for 15% Tax on Gambling Winnings

Poland’s Ministry of Finance is getting ready to raise the tax on gambling winnings from 10% to 15%. The proposal, which would go into effect in January 2026, belongs to a broader amendment to the Personal Income Tax Act and would cover all types of winnings, ranging from lotteries and betting to casino games and marketing prizes. 

It would also extend to winnings earned abroad, meaning Polish players who win money on foreign or EU-based gambling platforms could be taxed at home.

Much-Needed Update

Officials explain that the move is to be regarded as a necessary update to the system that hasn’t changed in more than two decades. The current 10% rate was introduced in 2001, and lawmakers now argue it no longer reflects today’s gambling landscape. 

“We need to ensure that the tax system keeps pace with the size and dynamics of the market,” one representative of the lower house of the national legislature of Poland, Sejm, told local media.

According to the Ministry, the higher rate is part of a “behavioural taxation” strategy meant to discourage excessive gambling while boosting public revenue. 

However, critics argue the logic doesn’t hold up. Higher taxes, they say, tend to push players toward offshore or unlicensed platforms, which is exactly what the government has spent years trying to prevent.

Currently, Poland’s gambling tax system is already one of the toughest in Europe, with operators forced to pay different rates depending on the types of games they offer. Namely, they pay 12% of total stakes for sports betting, and 50% of net revenue for slot and table games. 

The country also imposes a 10% tax on winnings, which licensed operators automatically withhold from players. For example, if someone wins PLN 10,000 (USD $2,709), they currently receive PLN 9,000 ($2,438) after tax. Under the new plan, that would drop to PLN 8,500 ($2,303).

Smaller prizes under EUR 520 ($600) are exempt from taxes; however, those rules may also change. If exemptions for EU or EEA-based winnings are removed, even players using licensed foreign casinos could see new deductions.

Expected Backfire

Industry voices warn that this could backfire. A Warsaw-based gaming lawyer argued that the raised taxes on players would “make regulated operators less competitive” while sending off users to illegal markets or grey-market sites.

Analysts also recall that past tax hikes led to a similar outcome, shrinking the legal market instead of growing it.

The proposal has already sparked debate in Warsaw, with supporters viewing it as a step toward modernising the country’s tax system and those against it calling it a move that would undercut the same market that the government is struggling to regulate. 

The final version of the draft, expected later this year, will show whether Poland can strike a balance between fiscal gain and keeping players in the legal fold.