POLISH REGULATION
before paying out winnings. Bookmakers also pay corporate income tax, at a standard 19 percent CIT. Thirdly, Poland does not distinguish between B2B and B2C licenses. It is clear that Poland is a demanding market and currently does not offer the ideal environment for developing a profitable gambling business. However, as demonstrated by the success of companies like Superbet and Betclic, with sufficient funding, it is possible to build a stable and thriving business with significant growth potential. The most recent major amendment to the Gambling Act was in 2016. At that time, the state monopoly was extended to cover online casino games and slot machines outside of casinos. Totalizator Sportowy Sp. z o.o., a state-owned company, was assigned the execution of this monopoly. Legal tools were also introduced to combat illegal operations, such as a Register of Domains Used to Offer Gambling Games in Violation of the Act (the Domain Register) and a ban on the provision of payment services to domains listed in the register. The intention behind the monopoly on online casinos was to reduce illegal activity and ensure player safety. The ability to block access to illegal domains was expected to make it clear to players whether they were using a legal gambling operator or not. 1 This article attempts to analyze whether these regulations have had the intended effect. The problem of the illegal market Current legal tools have been effective only to a certain extent. Illegal online casino activity has dropped from 100 percent to 40 percent, which means legislative efforts have yielded some results. 2 However, the remaining 40 percent still represents a major problem, raising the question of whether the regulations could have been designed differently.
It is worth noting that, apart from Poland, state monopolies exist only in Austria, Norway, and Finland – which plans to liberalize its gambling regulations from 2026. 3 Even the most effective state monopolies have struggled to reduce the grey market below 30 percent. The Domain Register turned out to be ineffective. When a website is listed, another site with a similar name and identical content quickly appears. These “clone domains” are created almost in real-time, making it impossible to list them all. Payments on illegal websites are facilitated via e-wallets, cryptocurrencies, or intermediary services, which makes compliance verification extremely difficult. In Poland, organizing gambling games in violation of the law is prohibited under Article 107 of the Fiscal Penal Code (the Code) and the Gambling Act itself. 4 Such actions may be punishable by fines or even imprisonment. However, enforcement tools are lacking. International cooperation is hindered by differences in gambling laws, and penalizing foreign operators is nearly impossible. By contrast, entities such as promoters, that cooperate with illegal operators may face legal consequences. Moreover, illegal gambling rarely gets reported, as the Code also penalizes players. Players often avoid reporting crimes for fear of their own liability. Illegal competition results in losses for the State Treasury. EY estimated that the grey market for online casinos in Poland reached 25.9 billion PLN in 2023. 5 Establishment of new institutions in the sector In Poland, the Ministry of Finance is responsible for gambling regulation. For a long time, the industry has advocated for a dedicated regulatory body similar to the UK Gambling Commission.
1 Justification for the government draft act amending the Gambling Act and certain other acts of 2016, published at: https://www.sejm.gov.pl/ sejm8.nsf/druk.xsp?nr=795 (accessed: May 16, 2025). 2 The Last Such Monopoly in Europe: The Effects of Lifting the State Monopoly on the Online Casino Market in Poland , Warsaw Enterprise Insti- tute Foundation, 2024, based on data prepared by EY (accessed: May 16, 2025). 3 Statement by the Director of the Department of Gambling Market Regulation and Gambling Tax during the meeting of the Parliamentary Free Market Team on March 27, 2025; recording available at www.sejm.gov.pl. 4 Act of September 10, 1999 – Fiscal Penal Code. 5 The Last Such Monopoly in Europe: The Effects of Lifting the State Monopoly on the Online Casino Market in Poland , Warsaw Enterprise Insti- tute Foundation, 2024, based on data prepared by EY (accessed: May 16, 2025).
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IMGL MAGAZINE | JUNE 2025
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