Poland Rejects Bid to Hike Gambling Tax

In a year filled with news about more onerous regulation heaped on the regulated gambling industry, Poland is, surprisingly, a breath of fresh air, with the country’s President, Karol Narwocki, shooting down a legislative proposal to increase the gambling tax rate, and specifically the tax charged to players’ winnings.

President Nawrocki Shoots Down Tax Increase on Player Winnings

Lawmakers wanted to increase the tax on betting winnings from 10% to 15%, as public finances are under increased scrutiny and social spending has been more or less keeping pace. 

However, the president’s office refused the measure. Under the proposal, lawmakers would have raised taxes across gaming, betting, and lottery operators. Some exemptions were coded into the proposed law, such as exemptions for wins under $570 (PLN 2,280). 

Nawrocki used this as an opportunity to further burnish his credentials, arguing that the tax was in effect an attempt to rob citizens and reach into their pockets. He argued that an ailing budget needed a tighter overall tax system rather than temporary palliatives such as raising taxes from citizens. 

Industry figureheads have taken the news with a collective sigh of relief, while analysts have argued that any tax increase would only end up empowering the black market and further compound operational capacity for licensed operators.

Poland has responded to the threat of illegal gambling operators by enacting large-scale bans of individual operators, targeting over 50,000 different websites, and also ordering payment providers not to process money from unlicensed gambling platforms.

Poland may also liberalize its online casino gambling market, allowing more stakeholders to operate in the coming years.