RGA calls on Poland to drop turnover-based betting tax
Industry body urges Polish government to adopt a levy derived from gross profits to grow regulated market
The Remote Gambling Association (RGA) has urged the Polish government to drop its sports betting turnover tax in favour of a gross profits tax model to attract Europe’s egaming operators.
On 19 July, the government refused to introduce a liberalised online gambling framework and instead passed measures to clamp down on unlicensed operators and introduce an online casino monopoly.
The draft bill of amendments to the country’s Gambling Act kept in place the 12% turnover tax on sports betting, despite repeated calls from vice-Prime Minister JarosÅaw Gowin to change the turnover-based levy in favour of a 20% tax on revenues.
And Clive Hawkswood, chief executive of the RGA, has added his name to the growing list of industry figures calling on the Polish government to abolish the turnover tax.
“Unfortunately, we have already observed since 2011 the effect of a turnover tax on the ability of Poland’s online gambling regime to attract European operators,” said Hawkswood.
“We have advised the Polish authorities that their fiscal framework is not workable.
“This will continue to stifle competition, value and choice for consumers.”
Hawkswood added that until the tax framework changed, few operators would take up licences in the market and wants the government to introduce a gross profits tax model instead.
“A suitable gross profits tax model would enable the Polish government to attract large, reputable companies into Poland and that would provide a market for the industry, excellent products and value for the consumers, and revenue for the state and regions,” added Hawkswood.