Unlicensed operators dominate Polish market
Polish operator calls for lower tax rate as report finds around 90% of market in hands of unlicensed operators
The chief executive of a licensed Polish gaming firm has called on the country’s authorities to lower its “restrictive” tax rate and introduce blocking measures after a new report found roughly 90% of the online market to be in the hands of unlicensed operators.
Mateusz Juroszek, CEO of STAR-TYP SPORT (STS), one of only four firms licensed to operate in the Polish market, said more needed to be done to tackle the unlicensed market and make the Polish licence more attractive to foreign operators.
“It can be done by rationalizing tax rates and simultaneously by blocking websites of unlicensed operators – [this is] how it was done with good results in many European countries,” Juroszek said.
He said the Polish Gambling Act was one of the most restrictive in Europe with a tax rate of 12% on turnover and bookmakers can only operate under a Ministry of Finance licence.
“All offshore operators registered abroad – in Malta, Gibraltar – still offer their services via the internet without any restrictions,” he added.
Juroszek’s comments come after a study carried out by online betting community Betting Expert found that the quartet of licenced operators only attracted roughly 10% of the country’s online gaming revenues during December.
STS were estimated to be the biggest licensed bookmarker with just 4% of total revenues while Fortuna, Intralot brand Totolotek and Millenium shared around 6% between them.
One reason given for the lack of Polish licence holders is the stipulation that licensees must have a physical presence inside the country, a requirement DLA Piper gaming lawyer Anna Wietrzynska believes may breach EU law.
“First of all, it should be decided whether the current provisions of the Polish Gambling Act which prohibit EU licenced betting operators which do not have a separate Polish license from targeting Polish residents are in line with EU law,” Wietrzynska said.
“There are strong arguments to claim that allowing only domestic companies to apply for a licence and prohibiting the targeting of Polish residents by operators which do not and cannot, as foreign companies, have a Polish licence is contrary to EU law,” she added.
A new draft Polish Gambling Act, which will water down some of the licensing requirements, is currently making its way through parliament and is expected to come into force in June.
Last year, Polish authorities launched a crackdown on citizens using unlicensed sites, opening more than 1,000 criminal cases against players and threatening those found guilty with prison sentences.
A report conducted by consulting firm Roland Berger last year estimated the Polish market to be worth around 1bn per year.