Polish trade association Graj Legalnie has said it supports President Karol Nawrocki’s decision to veto raising the tax on player winnings from 10% to 15%.
The proposal to amend the government’s Public Health Act and Personal Income Tax Act passed through parliament earlier this month but was rejected by Nawrocki on 18 December, who argued it would be taking money from the public in an attempt to plug Poland’s financial deficit.
The amendment to the Act would have seen the duty on winnings from online casino, lottery, prize draws and sports betting rise by five percentage points to 15%, up from 10%.
Poland’s financial deficit, according to the president, currently stands at PLN240bn (£49.9bn).
In a statement seen by EGR, the trade association backed Nawrocki’s decision and said raising the tax on player winnings would only serve to push players towards the black market.
Graj Legalnie stated: “For years we have been calling for amendments to the Gambling Act, pointing to its ineffectiveness as well as the fact that illegal operators still account for 40% of the online casino market.
“Increasing the tax on winnings may only deepen the problem, and the intended effect of higher budget revenues may prove to be the opposite.
“In our view, far better results would be achieved by revising the current solutions under the Gambling Act and tightening the market.
“In addition to positive fiscal effects, benefits related to citizens’ safety would also be achieved.
“Changing the tax on winnings, insofar as it applies to winnings from sports betting, may produce the opposite effect to that intended.
“The proposed changes will inevitably increase the market share of gambling operators acting illegally in Poland – while paying no taxes in Poland.
“Increasing the tax from 10% to the announced 15% is a strong incentive to stop playing with legally operating, licensed operators.
“The internet provides easy access to illegal entities enabling participation in gambling without the required authorisation.”
The association also commented on the potential change to the Gambling Act which would see the regulation of virtual games containing loot boxes.
The practice was estimated to cost the industry approximately $15bn a year, per the Havard Business School.
Commenting on the proposal, Graj Legalnie added: “This direction should be considered necessary and, in principle, appropriate.
“At the same time, we wish to clearly emphasise that the proposed changes are of a limited, piecemeal nature and do not address the fundamental problem of the Polish online gambling market – namely, the systemic ineffectiveness of the current regulatory model in combating the grey market.”
Poland offers regulated online casino via state-owned operator Totalizator Portowy and sports betting, through licensed operators including STS, Betclic, Superbet and Fortuna Entertainment Group.
Operators currently pay a prohibitive 12% tax on turnover, which makes Poland one of the highest-tax online sports betting markets in the world.
The post Polish trade body backs president’s veto on player winnings tax rise first appeared on EGR Intel.
Graj Legalnie insists Karol Nawrocki was right to reject an increase from 10% to 15% as it would have led to more players turning to the black market
The post Polish trade body backs president’s veto on player winnings tax rise first appeared on EGR Intel.