Poland’s government plans to increase taxes on player winnings, sparking criticism from operators who warn it could drive consumers toward unregulated gambling sites.
The Ministry of Finance is preparing amendments to the Personal Income Tax Act that would raise the tax on winnings from 10% to 15% starting in January 2026. The new rules would apply to games of chance, betting, lotteries, and even marketing prizes, with the remit extending to winnings earned abroad, a move that could capture players’ gains from other EU and EEA markets.
For background on current laws and taxation frameworks, see gambling regulation in Poland.
Warsaw seeks higher gambling revenues through a new tax plan
Lawmakers are framing the change as a fiscal necessity, but industry voices see it as a short-sighted move.
According to sources in the Sejm, the proposal aims to boost state revenue by targeting what the government sees as an under-taxed segment. Officials argue that the 10% rate, unchanged since 2001, no longer reflects the real value of modern wagering activity.
Finance officials describe the change as part of a “behavioural taxation” strategy, using higher taxes to discourage excessive gambling while raising funds for the public budget. However, critics point out that this reasoning contradicts the stated goal of reducing black-market activity, as higher taxes often make licensed betting less attractive.
This tension between fiscal priorities and consumer behaviour sets the stage for a heated policy debate as Poland finalises its draft legislation.
Understanding Poland’s existing gambling tax model
Current taxation already places a heavy burden on both operators and players.
Under the Gambling Act of 19 November 2009, operators already pay a primary gambling tax based on game type. Betting is taxed at 12% of total stakes, while slot and cylindrical games face a 50% rate on net revenue. On top of this, players pay a 10% winnings tax, collected directly by licensed operators at payout.
For example, a player winning PLN 10,000 (€2,100) currently sees PLN 1,000 withheld in tax. The new law would raise that deduction to PLN 1,500.
Some exemptions exist: winnings below €520 are tax-free, and prizes from games organised by authorised EU or EEA entities, such as licensed online casinos, are currently exempt regardless of size. Those exemptions, however, may be revised under the new draft.
Poland’s reliance on multiple layers of gambling taxation has long been criticised for encouraging players to seek alternatives abroad or through unlicensed local sites.
Industry warns of market distortion and black-market growth
Operators argue that the higher rate could backfire, shrinking the regulated market instead of growing it.
Industry analysts and licensed operators have voiced concern that taxing player winnings more heavily will undermine ongoing efforts to draw consumers into legal channels. A Warsaw-based gaming lawyer said that adding further tax pressure on players would only strengthen the appeal of grey-market operators.
Many observers recall similar outcomes in past tax reforms, when increased levies drove traffic to offshore platforms.
If the increase is enacted without adjustment, analysts warn that Poland’s regulated market share could contract, while the state treasury ultimately collects less overall due to migration toward untaxed play.
This raises questions about whether fiscal expansion and consumer protection can truly coexist under the current model.
Balancing policy goals and public revenue
The reform highlights Poland’s ongoing struggle to balance taxation, regulation, and consumer behaviour.
Proponents of the increase argue that the measure will modernise tax policy and align gambling revenues with broader public finance goals. Yet even supporters acknowledge that details remain unclear, including exemption thresholds, minimum taxable amounts, and whether the change will apply uniformly across all game types.
As the government prepares to publish the draft in full, operators are expected to lobby for exemptions or transitional measures that limit the impact on player engagement. The debate will likely shape Poland’s regulatory direction heading into 2026, with potential ripple effects across Central and Eastern Europe. Further data on market performance and taxation trends can be found in the Poland iGaming market research report.
Will Poland’s bid for more tax revenue strengthen its gambling framework, or push players further toward the unregulated market it’s trying to control?
Source: SBC News