Poland’s Ministry of Finance is preparing to raise the tax on gambling winnings from 10% to 15%, marking the first increase in more than two decades. The proposed change, scheduled to take effect in January 2026, forms part of a broader amendment to the Personal Income Tax Act.
The proposed tax increase will apply to all types of winnings, including lotteries, sports betting, casino games, and marketing prizes. The new rate will also extend to winnings earned abroad, meaning Polish residents who win money on foreign or European Union-based gambling platforms will be taxed at home.
First Increase Since 2001
Ministry officials have described the move as a necessary update to a system that has remained unchanged since 2001. According to government representatives, the current 10% rate no longer reflects the size and dynamics of today’s gambling market.
“We need to ensure that the tax system keeps pace with the size and dynamics of the market,” a representative from the Sejm, Poland’s lower house of parliament, told local media.
The Ministry of Finance justified the increase by noting that provisions concerning the rate of tax on winnings have not been amended in 25 years, despite significant increases in the value of winnings from competitions, games, and bets organized by entities across various industries.
Impact on Players
Under the current system, licensed operators automatically withhold a 10% tax from player winnings. For example, a prize of PLN 10,000 (approximately $2,709) currently yields PLN 9,000 ($2,438) after tax. Under the proposed 15% rate, the same prize would result in a net payout of PLN 8,500 ($2,303).
Smaller prizes under approximately EUR 520 ($600) are currently exempt from taxes, though these exemption rules may also be subject to change. If exemptions for EU or EEA-based winnings are removed, players using licensed foreign casinos could face new deductions.
The responsibility for collecting and remitting the tax will remain with the organizers of lotteries, competitions, and betting operations. Players will continue to receive their winnings net of tax, with the deduction applied before payout.
Industry Concerns
Industry representatives have expressed concerns that the increased tax burden could drive players toward unlicensed operators who can offer tax-free winnings. A Warsaw-based gaming lawyer argued that the raised taxes on players would “make regulated operators less competitive” while pushing users to illegal markets or grey-market platforms.
Poland already operates one of the strictest gambling tax frameworks in Europe. Operators currently pay 12% on total stakes for sports betting and 50% on net revenue for slot and table games. The additional player-facing tax increase has prompted debate about whether the measure could undermine ongoing efforts to regulate the market and combat illegal gambling.
According to industry estimates, PLN 230 billion (approximately $61 billion) has flowed into tax havens via illegal gambling in recent years, costing the Polish state an estimated PLN 5.8 billion (roughly $1.5 billion) in lost taxes.
Regulatory Context
The tax increase comes at a time when Poland maintains a state monopoly on online casino and slot games through Totalizator Sportowy, the state-owned gambling operator. Sports betting remains open to private operators, but casino-style games are under exclusive state control.
The draft Act amending the Excise Duty Act and the Personal Income Tax Act is expected to be submitted to the Council of Ministers in the final quarter of 2025. The government has framed the gambling tax measure in fiscal terms while simultaneously proposing excise duty increases on alcohol as a public health measure.
The final version of the legislation will determine whether Poland can balance increased tax revenues with retaining players in the legal gambling market.
Source: Reuters
