Poland’s gambling sector has received a significant reprieve after President Karol Nawrocki vetoed legislation that would have increased the tax on gambling winnings from 10% to 15%. The decision halts amendments to the Personal Income Tax Act and Public Health Act that had already passed Parliament and were framed as health-related measures, but widely viewed as fiscally driven.

The veto preserves the existing tax framework and offers short-term certainty for licensed operators, reinforcing Poland’s efforts to protect market competitiveness and limit further growth of unlicensed gambling.

Presidential Veto Targets Budget-Driven Measures

President Nawrocki rejected the proposed tax increase on 18 December, stating that the amendments were primarily designed to address a widening public finance deficit rather than deliver genuine public health outcomes.

“In my Plan 21, I announced I would not sign any bills that raise taxes for Poles,” Nawrocki said, pointing to a reported budget deficit exceeding PLN240 billion. He argued that the government should focus on improving tax efficiency rather than imposing higher levies on consumers.

Market Stability and Channelisation Concerns

Industry stakeholders and legal experts welcomed the decision, noting that higher taxes on player winnings risk weakening the regulated market. Marek Plota, an attorney at RM Legal, said maintaining the 10% rate helps preserve the attractiveness of licensed products and reduces incentives for consumers to migrate to illegal platforms.

Poland continues to battle a substantial grey market, with more than 50,000 unlicensed gambling domains currently blacklisted by the Ministry of Finance. Maintaining competitive legal offerings is seen as central to channelisation efforts.

Next Steps Remain Uncertain

While the veto blocks the tax rise for now, the legislation could return if Parliament secures the three-fifths majority required to override the president’s decision.

The episode also highlights wider structural tensions within Poland’s gambling framework. Sports betting is open to private operators, while online casino activity remains a state monopoly under Totalizator Sportowy. Recent enforcement actions targeting influencers and payment providers linked to offshore operators underscore the government’s continued focus on restricting illegal gambling.

For now, the veto delivers regulatory breathing room, though broader debates around taxation and market structure are likely to resurface in future reform cycles.

Sources: iGaming Business, iGaming Today