POLAND

Poland – Income from online betting is increasing

Income from taxation of online betting increased from PLN 88 million in 2016 to PLN 465 million in 2018 – indicates the Polish Economic Institute in a report published on Wednesday.

The Polish Institute of Economics (PIE) in Tygodnik Gospodarczy reminds that the tax on games is paid by entities that organize games of chance, mutual bets, card games or games on slot machines.

“The basis for its payment is usually the sum of proceeds obtained from the organization of games. The tax on games is not a tax on winnings (these are taxed on income tax), but a tax imposed on game organizers, “we read.

PIE explains that game tax rates vary depending on the type of game and range from 2.5 percent. for betting on animal sports competition (e.g. horse racing) up to 50% for slot games, cylindrical games, dice games and card games – in addition to poker played in the form of a tournament, at a rate of 25 percent.

“Gaming tax revenues have a small share in the state budget revenues. In 2018, revenues from this tax amounted to PLN 1.9 billion. It’s almost 60 percent more than in 2014. The share of gaming tax revenue in total state budget revenues does not change significantly over time – in 2018 it was only 0.5 percent and was similar to previous years, “reminds PIE.

As they indicate, the largest share of gaming tax revenue comes from the taxation of number games covered by the state’s monopoly. In 2018, this type of games accounted for 37 percent of tax receipts. The second place goes to betting, with a 32% share, of which 3/4 is online betting and 1/4 is stationary betting. About 20 percent inflows result from the taxation of casinos, and just over 10 percent from taxing other types of games.

PIE draws attention to the growing income from online betting taxation. “Revenues on this account increased from PLN 88 million in 2016 to PLN 465 million in 2018, so more than five times in just two years” – we read. According to the Institute, this is influenced by a combination of several factors: intensive market development (increase of turnover by several dozen percent year-on-year), growing number of permits for this type of activity granted by the Ministry of Finance (from 7 at the end of 2016 to 14 at the end of 2018) and the diminishing shadow economy (e.g. due to the amendment to the Gambling Act adopted in 2016).

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