Poland rejects gambling tax hike

[The Buzz]

President Karol Nawrocki has vetoed a planned increase in Poland’s gambling tax, saying it would have unfairly burdened citizens.

Earlier this month, Parliament passed amendments to the Public Health Act and Personal Income Tax Act, which also included a rise in the country’s sugar tax. The changes would have increased the tax on winnings from competitions, games, and mutual betting from 10% to 15%.

From Tribuna:

Despite his Law and Justice party’s traditionally interventionist stance, Nawrocki opted to block the proposal, keeping the winnings tax at its current level. Legal experts say the decision reflects concerns that higher consumer taxes could undermine the regulated market.

“The veto prevents the adoption of a higher fiscal burden that had raised concerns among licensed operators and industry stakeholders,” said Marek Plota, managing partner at RM Legal. “Maintaining the current tax rate helps preserve the attractiveness of licensed products and reduces the risk of players shifting to the grey market.”

According to Polish iGaming lawyer Justyna Grusza-Głębicka, the president argued that his role is to approve legislation that serves citizens’ interests and to reject measures that could harm them financially.

The bill will now return to the Sejm, where lawmakers could still override the veto with a three-fifths majority, provided at least half of the 460 deputies are present. For now, however, Poland’s betting sector has gained temporary breathing space in an already highly competitive market dominated by local heavyweight STS Holdings.

Read more here: https://tribuna.com/amp/en/casino/ne...-winnings-tax/

[Pokerface]

Interesting to read this and the reasons behind the decision. It is refreshing considering what other countries are doing by raising tax rates.

[dannyx]

The president also recently vetoed new radical regulations on cryptocurrencies. However, this does not change much, because new regulations, reporting requirements, and many other obstacles for cryptocurrencies are coming from the European Union anyway.

As for betting, Poland has a turnover tax on betting, 12% on each stake. So if you bet €100, you get €88 on your betting slip. There are also taxes on winnings, applicable even on small amounts, and other taxes.

The result is as follows: In the case of, say, an NHL game with an ML bet on the final winner, where the odds are estimated at 50-50, after deducting taxes and dreaming, the real odds for such an event are approximately... 1.55 vs. 1.55.

No one expects odds like those at Pinnacle in a regulated market. But the REAL odds I gave above are already extreme.