Poland’s Ministry of Finance is planning to increase the tax on gambling winnings from 10% to 15%, starting in January 2026. This proposal, part of a comprehensive amendment to the Personal Income Tax Act, will apply to all forms of winnings including lotteries, betting, casino games, and marketing prizes. The amendment will also cover winnings generated abroad, meaning Polish citizens who earn money on foreign or EU-based gambling platforms will be subject to taxation at home.
This change is seen as an overdue update to a tax structure that hasn’t been revised in over two decades. The existing 10% rate was established in 2001, and legislators argue that it no longer aligns with the current gambling environment. A representative from Poland’s Sejm, the lower house of the national legislature, emphasized the need for the tax system to keep pace with the expanding and evolving gambling market. “We need to ensure that the tax system keeps pace with the size and dynamics of the market,” they remarked in a discussion with local media.
The Ministry asserts that this tax increase is part of a broader “behavioural taxation” strategy aimed at discouraging excessive gambling while simultaneously enhancing public revenue. However, critics argue that the logic behind this strategy may be flawed. They warn that higher taxes could drive players toward offshore or unlicensed platforms, precisely what the government has been trying to prevent for years.
Currently, Poland’s gambling tax system is already considered one of the most stringent in Europe. Operators are required to pay varied rates depending on the types of games they offer; for instance, they pay 12% of total stakes for sports betting and 50% of net revenue for slot and table games. Additionally, the country imposes a 10% tax on winnings, which licensed operators automatically deduct from players’ earnings. For example, if a player wins PLN 10,000 (approximately USD $2,709), they currently take home PLN 9,000 (about $2,438) after tax. Under the new proposal, this would decrease to PLN 8,500 ($2,303).
There is an exemption for smaller prizes under EUR 520 ($600), though these rules may also be subject to change. If the exemptions for winnings from EU or EEA-based platforms are removed, even players using licensed foreign casinos might face additional deductions.
Industry insiders have voiced concerns that this move could have unintended consequences. A gaming lawyer based in Warsaw suggested that increasing taxes on players would render regulated operators less competitive, likely driving users to illegal or grey-market sites. Analysts recall that similar tax hikes in the past resulted in a contraction of the legal market rather than its expansion.
The proposal has ignited debate in Warsaw, with proponents viewing it as a necessary step towards modernizing Poland’s tax system, while opponents see it as a potential threat to the very market the government is striving to regulate. The previous attempts at raising taxes have shown that the legal market shrinks rather than grows, suggesting that the intended fiscal benefits may not materialize as expected.
The final version of the draft is expected later this year and will reveal whether Poland can find a balance between achieving fiscal gains and maintaining player engagement within the legal system. Observers are keen to see whether the government can implement these changes without driving players towards unregulated alternatives that could ultimately undermine the country’s gambling industry.
In conclusion, while the Polish government aims to modernize its tax system and curb excessive gambling through a higher tax rate, the potential for unintended consequences cannot be ignored. The debate continues as stakeholders from various sectors weigh in on how best to achieve these goals without diminishing the legal market or driving players to riskier, unregulated platforms. The final decision will likely hinge on finding a middle ground that satisfies both fiscal objectives and market stability.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
