Gambling Tax in Poland: Rates, Bases and Why Turnover Taxation Shapes the Market

Poland’s gambling tax regime is one of the main reasons the licensed market looks the way it does: a handful of betting operators on thin margins, a strong state monopoly and a persistent offshore grey market. Understanding the tax structure is essential for anyone modelling a Polish entry. Here is how it works.

Tax on games of chance and betting

The Polish Gambling Act sets rates that vary by type of game and, importantly, by tax base. Mutual betting is taxed at 12% of the sum of stakes, with betting on animal racing at a lower rate. Casino games and slot machines in casinos are taxed at 50% of gross gaming revenue. Cash lotteries and promotional lotteries are taxed on the value of tickets or prizes. For online betting, the turnover base is the critical feature: every zloty staked is taxed regardless of whether the operator keeps it.

What the turnover model means in practice

A bookmaker retaining a 7% margin on turnover pays 12% of turnover in tax, which equals more than 170% of its gross margin before the tax on winnings and operating costs. Licensed operators compensate by offering lower odds than offshore competitors, which in turn keeps offshore sites attractive to players. Industry bodies have repeatedly proposed a move to a GGR-based tax, and the topic resurfaces periodically, but no change has been adopted.

Tax on player winnings

Winnings from betting and gambling above a statutory exemption threshold are subject to a 10% flat-rate personal income tax, which the operator must withhold and remit. Winnings from licensed operators in Poland, and from operators licensed in other EU/EEA states, are covered by the exemption up to the threshold; winnings from unlicensed sites are not exempt and expose players to tax liability in addition to fiscal-penal risk.

Filing and payment

Gambling tax is settled monthly with the competent tax office, on the basis of declarations submitted by the operator. Licensed operators must keep detailed records of stakes, payouts and bets, and the data-archiving requirements support tax verification. Late or incorrect filings carry interest and penalties, and repeated non-compliance can threaten the permit itself.

Other fiscal considerations

Operators also pay corporate income tax at the standard rate, and certain services purchased from abroad may trigger VAT reverse-charge obligations. Permit fees and annual charges are moderate. Cross-border groups should also consider transfer-pricing documentation for services provided to the Polish licensed entity by group companies.

Modelling a Polish entry

Any financial model for Poland must be built on the turnover tax, not on GGR assumptions imported from other markets. Operators that do this early make better decisions on odds, marketing spend and product mix.

Our corporate and structuring team helps operators model Polish tax exposure and structure group services efficiently.