A tax rise partly aimed at the gambling industry in Poland has been vetoed by the country’s President after claiming it would disproportionately affect the financial health of citizens. The Polish government’s Public Health Act and Personal Income Tax Act amendment would have also implemented a sugar tax. The proposed changes were going to raise the tax on winnings from competitions, games and mutual betting from 10% to 15%.
In Poland, there is a deficit of over PLN240 billion ($64.8 billion) in the budget. The tax is aimed at reducing that figure, but President Karol Nawrocki is determined to fulfil a campaign promise. In a statement, he said: “In my Plan 21, I announced I would not sign any bills that raise taxes for Poles. Instead of tightening the tax system, the government is reaching into citizens’ pockets.”
The move has been largely praised by political supporters and observers from the wider gambling industry. Zbigniew Bogucki, head of the Chancellery of the President of the Republic of Poland, commented: “The president’s vetoes are constructive; they force the government to work.
“If these solutions had stipulated that all the money coming from the surplus of these taxes would go to health care, which is in a terrible state, then the President would probably have made a different decision. But this money was supposed to fill a huge budget hole that this government itself had dug.”
The Polish Ministry of Finance (MF) had estimated the proposed increase in gambling winnings tax to 15% would generate roughly an additional PLN500 ($139.64) million in annual revenue, helping support state finances as the government seeks new sources of funding.
Blacklisted operators in Poland causing political headache
There remains a lot of work to be done by the country in tackling the scourge of black market operators. According to the MF, there are more than 50,000 domains operating without a license in the country, each of which have been blacklisted for violating Polish law.
In Poland, sports betting is open for private operators to provide services, but there is a central online casino hub owned and operated by the state called Totalizator Sportow. Health officials and industry professionals are warning the government to take the issue of the black market sector seriously or risk falling behind..
Back in April 2025 at the European Economic Congress, a panel called for more state action to tackle illegal operators. The president of Poland’s gambling trade association (Graj Legalnie), Zdzislaw Kostrubala, said at the time: “We, as an association, are absolutely not against regulation. We are against regulation that does not work. I can’t imagine that we will improve our economic, social and competitive situation while maintaining the current status quo.”
Piotr Palutkiewicz, VP of the Warsaw Enterprise Institute, also said: “Even a consumer who wants to play legally, without knowing that he is dealing with only one legal entity, will inadvertently and unknowingly start playing at illegal casinos anyway.”
The 10% tax on winnings for players in Poland forms a big part of that contentious issue. Industry insiders have long warned against its existence.
Country resists recent precedent set by the UK
Since the UK announced it was raiding the gambling sector to help bridge a budget deficit, other countries have hinted at following suit or have already done so. Brazil and Mexico, for example, have announced significant proposals that could hike taxes. The former continues to debate the bill in the senate, while the latter is pressing ahead with a mammoth 50% rate (up from 30%) after it was already approved in the senate.
In Sweden, chief executive of the country’s horse racing monopoly AB Trav och Galopp (ATG) Hasse Lord Skarplöth labeled the plans as “courageous”. He said: “The UK has understood that gambling policy cannot be handled with a sledgehammer. It requires precision. The motive was as clear as it was politically courageous: horse racing not only finances gambling, but an entire industry. Online casinos do not.”
While there appears to be a shifting stricter sentiment with regards to taxation policy, Poland’s stance on pulling back from tax rises on the sector will be a welcome bout of relief for industry bosses, who may have been worried about a chain reaction.
Poland gambling sector remains buoyant
According to recent data released in the summer, revenues generated by entities operating in Poland’s gambling market rose by a significant 26.6%, posting revenues in excess of PLN 94 billion ($26.25 billion). Whether the success of those numbers influenced Nawrocki’s decision to scrap the tax or not is impossible to say for certain However, the news has been well received in the wider industry consensus.
