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Gambling Tax Hike Set to Reshape Poland Market in 2026

Gambling Tax Hike Set to Reshape Poland Market in 2026

Poland is preparing for its first increase in the tax on gambling winnings in more than two decades, with the Ministry of Finance confirming plans to raise the rate from 10 percent to 15 percent starting in January 2026. The proposal forms part of a broader amendment to the Personal Income Tax Act and will apply to winnings from lotteries, sports betting, casino games, and promotional competitions. It will also affect Polish residents collecting prizes from gambling platforms based abroad, including those operating within the European Union.

Officials say the adjustment is long overdue, pointing out that the current rate has remained unchanged since 2001 despite the rapid growth of the gambling sector. A representative from the Sejm said the tax system must keep pace with the modern market, noting that the value of winnings has significantly increased across competitions and games offered by various industries. The ministry argues that the outdated framework no longer reflects the financial realities of today’s betting environment.

For players, the upcoming rate change means lower payouts. Under the existing 10 percent tax, a prize of PLN 10,000 leaves the winner with PLN 9,000. With the planned 15 percent deduction, the same amount would result in a net payout of PLN 8,500. While smaller prizes under roughly EUR 520 remain tax-exempt, the government is reviewing whether exemptions for EU- or EEA-based winnings will continue. Any removal of these exemptions would introduce new deductions for players using licensed foreign gambling services.

The responsibility for withholding the tax will continue to rest with operators, ensuring that deductions are applied before payouts reach players. This system, officials say, reduces administrative burdens on individuals and maintains transparency in tax collection.

Industry voices, however, warn of unintended consequences. Legal and gaming experts argue that higher player-facing taxes could make regulated operators less attractive, pushing users toward unlicensed or grey-market platforms offering tax-free winnings. Poland already enforces one of Europe’s strictest gambling tax regimes, including a 12 percent levy on total stakes for sports betting and a 50 percent tax on net revenue for slot and table games. Adding another layer of taxation, they caution, may harm market stability and hinder ongoing efforts to curb illegal gambling.

Recent industry estimates highlight the scope of the problem. Around PLN 230 billion is believed to have flowed into tax havens through illegal gambling operations in recent years, costing the state an estimated PLN 5.8 billion in lost tax revenue. Critics argue that raising taxes for compliant players could further widen the gap between the regulated sector and underground operators, challenging future enforcement measures.

The proposal will now move through legislative procedures, with the government positioning the increase as a fiscal update aimed at modernizing a long-standing system. While policymakers insist the reform will strengthen the state budget, the broader market impact will become clearer as the 2026 deadline approaches.

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