Poland’s president blocks proposed gambling tax hike, citing burden on citizens

Poland’s president has vetoed legislation that would have increased the tax on gambling winnings, a move that has been welcomed by industry stakeholders who argue it preserves competitiveness and stability in the regulated market.

President Karol Nawrocki rejected amendments to the Public Health Act and the Personal Income Tax Act that had been approved by Parliament earlier this month. The changes would have raised the tax on winnings from competitions, games and mutual betting from 10% to 15%, alongside an increase to the country’s sugar tax.

In announcing his decision on 18 December, Nawrocki said the proposed gambling tax increase would have placed an excessive financial burden on citizens. Although the amendments were framed by the government as measures to promote public health, the president argued that their true purpose was fiscal.

“The government was ostensibly seeking to address the growing public finance deficit by taking more money from citizens,” Nawrocki said, adding: “In my Plan 21, I announced I would not sign any bills that raise taxes for Poles.”

While discussing the sugar tax specifically, Nawrocki spoke more broadly about the rationale behind his vetoes. “The goal … is obvious: to close the huge budget hole for which the government is responsible,” he said. “After 11 months, we have a deficit of over PLN240 billion ($64.8 billion). Instead of tightening the tax system, the government is reaching into citizens’ pockets.”

The president also noted that the future of the amendment to the Personal Income Tax Act would depend on further steps taken by Parliament.

Zbigniew Bogucki, head of the Chancellery of the President of the Republic of Poland, defended the vetoes as a constructive intervention. “The president’s vetoes are constructive; they force the government to work,” he said.

Bogucki added that the outcome might have been different had the legislation clearly earmarked the additional revenue for health care. “If these solutions had stipulated that all the money coming from the surplus of these taxes would go to health care, which is in a terrible state, then the President would probably have made a different decision,” he explained. “But this money was supposed to fill a huge budget hole that this government itself had dug.”

The decision to block the gambling tax rise has been positively received by industry experts, who argue that maintaining the current 10% tax rate helps protect the legal market from unlicensed competition.

Marek Plota, an attorney at Wrocław-based RM Legal, said: “Avoiding a tax increase helps ensure that licensed products remain commercially attractive and limits incentives for players to seek alternatives in the grey market. From a market perspective, this contributes to regulatory stability and supports channelisation objectives.”

According to the Ministry of Finance, Poland continues to face significant challenges from illegal gambling. Its blacklist currently includes more than 50,000 unlicensed domains operating in violation of Polish law. While the sports betting sector is open to private operators, the country permits only one legal online casino, which is run by the state-owned Totalizator Sportowy.

In recent months, Polish authorities have intensified enforcement efforts, targeting influencers who promote unlicensed gambling brands and payment service providers that facilitate transactions for illegal operators.

By fLEXI tEAM