Poland’s gambling tax hike paused after presidential veto.

Poland’s president has vetoed a proposed increase in the tax on gambling winnings, halting a reform that critics warned could strengthen the country’s persistent black market. The bill, approved earlier this year by parliament, would have raised the tax rate on player winnings from 10% to 15% as part of a wider package of fiscal measures.

Under the draft law, winnings below PLN 2,280 would have remained tax-free, while higher payouts from sports betting, lotteries, and other gambling products would have faced the higher rate. However, the presidency argued that increasing player taxation risked undermining the competitiveness of licensed operators. According to officials, the measure could weaken channelisation by encouraging players to migrate to offshore platforms that do not withhold tax.

Industry representatives welcomed the veto, noting that Poland already operates one of Europe’s most restrictive gambling tax systems. Licensed bookmakers are taxed at 12% of turnover rather than gross gaming revenue, a structure frequently criticised for squeezing margins and limiting competitive offers.

The decision also highlights broader challenges in tackling Poland’s grey market. Despite aggressive enforcement, including ISP blocking, payment restrictions, and advertising bans, experts estimate that more than 20% of online gambling activity still occurs on unlicensed sites. Critics argue that higher taxes on regulated play would only widen this gap.

Poland’s gambling framework combines a state monopoly on online casino products, held by Totalizator Sportowy, with tightly controlled private sports betting. While the model has generated steady revenue, it faces mounting scrutiny over unmet demand and offshore leakage.

The veto does not end the debate. Instead, it may accelerate calls for comprehensive reform that balances fiscal needs, market competitiveness, and long-term channelisation objectives.