Poland’s Gambling Tax Rules Face Industry Criticism

Poland’s gambling industry continues to expand at a rapid pace, but licensed operators argue that the country’s taxation framework is making regulated betting less attractive while allowing illegal gambling platforms to gain ground.

Although gambling revenue has continued to rise, many companies believe the current system encourages players to use unlicensed websites instead of supporting the regulated market.

Turnover Tax Remains a Key Concern

Poland’s current gambling framework was introduced in 2009 following the political controversy known as the Blackjack-gate scandal, resulting in one of Europe’s strictest tax structures for gambling operators.

Licensed sportsbooks are required to pay a 12% tax on turnover rather than on gross gaming revenue. Online casino operations remain exclusively reserved for the state-owned operator, Totalizator Sportowy, while players are also subject to tax on winnings before payouts are made.

For bookmakers, the turnover-based tax presents the greatest challenge. Since it applies before winnings are paid, operators typically maintain higher margins to manage financial risk, resulting in less competitive odds compared to markets where taxation is based on gross gaming revenue.

Figures from H2 Gambling Capital estimate that Poland’s sports betting market will generate approximately €1.62 billion in gross gaming revenue from around €5.07 billion in turnover during 2026, representing an implied margin of roughly 32%, considerably higher than many other regulated European markets.

Illegal Gambling Continues to Challenge the Market

Despite the heavy tax burden, Poland’s gambling industry has continued to record strong growth. H2 forecasts that the combined online and land-based gambling market will approach $5 billion in gross gaming revenue during 2026 following several years of sustained expansion.

That growth has reduced pressure for immediate regulatory reform, as lawmakers continue to benefit from rising tax revenues.

However, the illegal gambling market remains a major concern.

Industry estimates suggest regulated online sports betting captures between 78% and 88% of players, while regulated online casino channelisation is significantly lower at around 59%. Research has also indicated that a majority of online casino players in Poland have accounts with unlicensed operators, while industry data suggests the country's illegal gambling market doubled in size between 2017 and 2025.

Several industry experts believe replacing the turnover tax with a gross gaming revenue tax would improve the competitiveness of licensed operators and encourage more players to remain within the regulated market. They acknowledge, however, that such a change could temporarily reduce government tax income before long-term market growth offsets part of the decline.

Online Casino Monopoly Remains Under Scrutiny

The debate extends beyond taxation.

Since 2017, Totalizator Sportowy has held exclusive rights to operate online casino services in Poland. Industry representatives argue that the monopoly encourages players to use offshore casino websites because licensed bookmakers are unable to offer competing casino products.

The state operator maintains a different position, arguing that ending the monopoly would not eliminate illegal gambling. Instead, it believes enforcement efforts should focus on restricting payment services used by unlicensed operators. Public opinion has also remained broadly supportive of maintaining the current monopoly.

Political Priorities Delay Reform

Significant regulatory changes appear unlikely before Poland's parliamentary election in 2027.

Neither of the country's two largest political parties is considered strongly supportive of gambling liberalisation. Although smaller political groups have shown greater openness to reform, they currently lack sufficient influence to drive legislative change. Broader issues, including national security, defence spending and economic policy, continue to take priority over gambling reform.

Some industry observers are monitoring Finland's planned transition away from its online gambling monopoly as a potential example for other European markets. Should that approach prove successful, it could strengthen the case for similar reforms in Poland.

For now, Poland's gambling market continues to face a mixed reality. While the regulated sector continues to grow, illegal gambling remains a significant challenge, ensuring that calls for reform are unlikely to fade.