Poll results: Poland's 12% betting turnover tax unworkable
Vast majority of readers agree tax model could stifle competition and innovation
Poland’s decision to stick with a 12% tax on sports betting turnover is anti-competitive and risks excluding foreign operators from the regulated market, according to a majority of respondents to this week’s poll.
More than 85% of voters agreed the levy on turnover rather than revenues â as is more common â was “unworkable”, echoing the opinion issued by the Remote Gambling Association (RGA) last week.
RGA chief executive Clive Hawkswood said the fact other countries had moved from a turnover to a revenue-based tax system was proof the turnover model has a dampening impact on markets â Italy being the most recent example.
“[The turnover tax] will continue to stifle competition, value and choice for consumers,” Hawkswood added.
According to Poland analysts, the turnover tax system has contributed to the online sports betting market being restricted to just a handful of operators with local ties, including Fortuna, STS and Totolotek.
That leaves 90% of the market in the hand of foreign âgrey’ operators, but with Poland set to introduce new IP and financial transaction blocking, firms could find themselves faced with a choice between an oppressive tax or leaving the market completely.
With the market share of the licensed operators subsequently expected to grow, Polish insiders have warned of a loss of competition and innovation.
Just 15% of voters on the EGR poll said the 12% tax on turnover was a workable system.