Poland Rejects Proposed Increase in Gambling Tax

President Narwocki Blocks Tax Hike on Gambling Winnings

In an unexpected move amid widespread regulatory pressures on the gambling sector, Poland’s President Karol Narwocki has vetoed a legislative attempt to raise the tax rate on gambling winnings.

Proposed Tax Increase and Its Scope

Lawmakers had proposed to raise the tax on betting winnings from the existing 10% to 15% to help address budgetary challenges and increased social spending. The plan aimed to elevate taxes not only on winnings but also across gaming, betting, and lottery operators. The proposal did include some relief measures, such as exempting earnings under approximately $570 (2,280 PLN) from taxation.

Presidential Opposition and Rationale

President Narwocki opposed the bill, arguing that increasing taxes on citizens’ gambling winnings is more of a short-term fix rather than a sustainable solution for budget problems. He emphasized the need for a more comprehensive and efficient tax system instead of relying on measures that effectively take more money out of citizens’ pockets.

Industry and Market Implications

The decision was well received by gambling industry leaders, who expressed relief at avoiding higher tax burdens. Analysts cautioned that hiking taxes could have unintentionally boosted the illegal gambling market, complicating operations for licensed providers.

Efforts to Combat Illegal Gambling

Poland has actively tackled illegal gambling by blocking access to over 50,000 unlicensed websites and instructing payment processors to refuse transactions linked to unauthorized gambling platforms. These measures aim to strengthen the legal market and protect consumers.

Future of Online Casino Market in Poland

Looking ahead, Poland is considering liberalizing its online casino regulations to allow more operators into the market. This potential openness could lead to greater competition and a more regulated environment for online gambling in the country.