The changing face of Polish regulation

Current regulations related to gambling in Poland

Poland has unique gambling regulations that differ significantly from those adopted in most European countries. The primary piece of legislation governing the gambling sector is the Gambling Act of November 19, 2009 (the Gambling Act).

What distinguishes Poland’s gambling regulations from those of other European countries?

Firstly, the state holds a monopoly on a significant portion of gambling activities. Entrepreneurs may only apply for a license to operate a land-based casino and a permit to organize mutual betting both online and land-based. Promotional lotteries may also be organized upon obtaining special permission.

To obtain a permit for organizing mutual betting in Poland, a company must be registered as a joint-stock company or a limited liability company based in Poland. This activity may also be conducted by companies based in another EU or EEA member state, provided they operate under similar corporate structures and appoint a representative or branch office. The minimum share capital must be at least €468,000. The cost of an online license is approximately €173,000. The company must have a transparent ownership structure and no ties to illegal gambling. Applicants must document the legal origin of their funds and provide a business and operational plan. A responsible gaming mechanism is mandatory. Management board members and shareholders must have no criminal records related to tax, economic crimes, or illegal gambling. Key personnel must have appropriate qualifications and experience. Licenses are granted for six years, and the application process takes about six months. In the case of lotteries, the procedure is much shorter and depends on the decision of the Head of the Tax Administration Chamber. All other gambling activities, including online casinos, may only be operated by a dedicated state-owned company.

Secondly, Poland applies a turnover tax of 12 percent (calculated from revenue) on mutual betting, instead of GGR (Gross Gaming Revenue – revenue minus paid out winnings), which makes it a country with one of the highest gambling tax rates. The tax is automatically deducted by the bookmaker 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. 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. 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. 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. 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.

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.

In October 2024, the Department of Gambling Market Regulation and Gambling Tax was established. It is responsible for regulating the gambling market, granting licenses, approving rules for games under the state monopoly, and issuing decisions defining the nature of games. It also handles technical inspections and international cooperation. The department is expected to closely monitor the rapidly growing online grey market. Similar departments existed in the past but were dissolved nearly eight years ago.

A new Interministerial Team for Combating the Grey Market was also formed and its inaugural meeting took place on April 14, 2025, at the Ministry of Finance. This team coordinates government actions against the grey market and was established following International Monetary Fund (IMF) recommendations. Representatives of the European Commission also participated. The project “Improve the capacity of Poland to better assess and counteract the grey economy” is being implemented in cooperation with the IMF.

The government has reopened discussions on changes in the gambling industry. On March 27, 2025, a meeting of the Parliamentary Team for the Free Market was held as part of these discussions, focusing on illegal gambling in Poland, diagnosing the problems in combating it and proposing solutions. As a participant in the meeting, I can confirm that the discussion was very substantive, the industry representatives shared common goals, and this is a strong motivation for cooperation on potential changes.

These new institutions present an opportunity for legal reform. However, tangible effects of their work have yet to be seen, likely due to the short time since their establishment.

Poland’s European Union presidency

On January 1, 2025, Poland assumed the presidency of the Council of the European Union. One of its initiatives is to establish a special task force under the European Commission to more effectively combat illegal gambling. This is seen as essential given the diversity of gambling laws across EU member states.

The EU has repeatedly emphasized that each country may establish its own gambling regulations due to the sector’s specific nature and the need to protect public health. However, common AML (Anti-Money Laundering) regulations show that the EU is beginning to harmonize gambling-related rules. The 6th AML Directive, for instance, requires all gambling service providers to be regulated and supervised.

Given the EU’s ability to issue binding principles on gambling regulation, harmonized efforts to combat illegal online gambling should be feasible – especially considering the estimated €7.2 billion annual loss in unpaid taxes due to illegal gambling and the EU’s focus on money laundering prevention.

The proposed task force would include experts from member states and serve as a platform for exchanging experience, knowledge, and best practices in gambling regulation and enforcement. Special emphasis would be placed on using AI technologies to identify and eliminate illegal gambling websites.

An issue highlighted in the discussions was the legality of loot boxes – virtual boxes in video games containing randomized rewards, some of which may be worth up to €117,000 on the secondary market. They resemble gambling in their mechanics, yet in some countries, they are not classified as such, creating the potential for abuse. This issue is not unique to Poland and has been debated across the EU. Poland initiated the topic at Council of Europe meetings, receiving a positive response from the European Commission. The matter is under further examination. This initiative is valuable and should be supported by other member states and gambling organizations.

International cooperation is key

Fighting alone against gambling operators who offer games of chance within a given country without complying with its regulations is like aiming for the moon – theoretically possible, but extremely difficult in practice. We have witnessed an example in German courts where a player has sued a Malta-based gambling operator without a German license over financial losses incurred on its platform. In response in 2023, Malta introduced Bill 55 which allows Maltese courts to refuse to enforce foreign civil judgments related to gambling, aiming to protect locally licensed operators.

The Malta Gaming Authority defended the law as essential for regulatory integrity. However, several EU countries criticized it. Germany’s gambling regulator (GGL) declared that Bill 55 violates EU law, especially in terms of cross-border enforcement and consumer protection. The case has reached the Court of Justice of the EU and remains unresolved. This case shows that there is still a way to go and several practical hurdles in the way of greater harmonization.

Proposals for change

Two of the most prominent proposals for change in Poland are the liberalization of online casino regulations and and switching from turnover tax to GGR for mutual betting. If I had to bet, I would wager on legalizing online casinos coming first. Experiences from other countries show that a controlled opening of the iGaming market can yield positive outcomes, such as transitioning players from the grey market to legal operators and increasing tax revenue. The successful of legalization of online mutual betting in Poland is a prime example: since 2011, legal market share has risen from zero to around 88 percent. This demonstrates that legal competition and diverse offerings can reduce interest in illegal services.

Conclusions

The online gambling market is constantly evolving, and new technologies are emerging rapidly. Since current regulations have proven ineffective beyond a certain point, thoughtful changes to Poland’s Gambling Act are needed. New institutions have been established, and parliamentary debates are ongoing. However, we are still waiting for meaningful amendments. Eight years after the last revision, change is clearly needed although we should not be too hopeful – the government remains silent on specific legislative proposals.

Any regulatory changes aimed at reducing the grey market will be ineffective unless the EU aligns national interests and takes joint action against illegal operators. Poland, as the current EU Council president, can play a key role in this effort. We are a country with significant gaming potential. It is a market worth monitoring and investing in, as this could provide a strategic advantage when reforms come.