Famed for its stately castles, picturesque landscapes and delicious food, the Republic of Poland is home to one of the most restrictive gambling regulatory regimes in Europe. Despite this stringent framework, players from the birthplace of Chopin still enjoy gambling recreationally.
A report published by the Polish economic newspaper Puls Biznesu revealed that Polish residents spent more money on gambling than on medical services and alcoholic beverages in 2008. The Warsaw newspaper predicted that the local gambling industry’s value would equal that of the mobile telecommunications sector in the years to come.
Slot machines remain the most widespread form of gambling in the country, yet lotteries also enjoy considerable popularity among Polish gamblers. Lotto.pl is the most popular gambling site in Poland, with over 3.7 million registrants as of March 2020.
Both online and land-based gambling are legal on Polish soil. However, the strict regulatory framework has driven most betting operators out of the country and has hindered the development of the gambling sector. From the perspective of private gambling operators, the vague yet harsh requirements of the Polish regulators are nearly impossible to comply with.
Laws Governing the Landbased Gambling Sector in Poland
All forms of legal gambling in Poland are governed by the Act on Gambling Games, which came into force in November 2009. The Act (known as Ustawa z dnia 19 listopada 2009 r.) regulates casino gaming, slot machines, bingo games, lotteries, and mutual wagering on sports, or zakłady wzajemne in Polish. Games that do not involve an element of chance fall outside the scope of this Act.
Online Gambling Restrictions
Restrictions on Gambling HallsOnline Gambling Regulations in Poland
Until amendments were made to the 2009 Act on Gambling Games, offering online gambling services to Polish residents was illegal. Prior to legalization, local players resorted to offshore websites. Online gambling enjoyed such immense popularity that the country’s Ministry of Finance even threatened to prosecute nationals who engaged in such activities on foreign sites.
However, the threat was aimed at Polish residents who gambled professionally, not at those who played recreationally for nominal prizes. So far, there have been no reported instances of Polish players being penalized for playing at offshore online casinos. The changes were introduced on December 16, 2016, when interactive gaming became legal in the country. Under the new rules, arranging chance-based games over the Internet is subject to a state monopoly.
Exceptions are made only for betting and promotional lotteries, which can be operated by private entities as long as they obtain valid licenses from the Polish authorities. It is the Polish Prime Minister’s responsibility to exercise the state monopoly.
The amendments also specify the requirements operators must meet to organize online gambling, along with the taxes they must pay. Licenses for online gambling are granted to joint-stock or limited-liability companies that have registered offices within the Republic of Poland.
Licensing Procedure
Polish authorities issue several types of licenses for gambling products. Running land-based gambling operations requires a separate license, and the same applies to sports betting. Regarding online gambling, private companies may offer only mutual wagering and lotteries once they receive the required permits. At present, the country has a single operational online casino, Total Casino, which is run by the government-owned Totalizator Sportowy.
When applying for a license, online operators must provide the Polish authorities with a set of documents. However, the Polish Act on Gambling Games does not provide clear information about the contents of these documents. The licensing process is cumbersome and time-consuming. Formally, it takes about half a year, although local regulators can extend this period.
Applicants must also confirm that their permits have not been revoked for violations during the six years preceding the submission date. The Polish regulator reviews the reputation of the applicant’s board members and shareholders as well. Permits are not granted to individuals who have criminal records in member states of the European Union.
Share Capital Requirements and License Revocation
Taxes on Gambling OperatorsLegal Gambling Age and Protection of Vulnerable Players
As in all jurisdictions where such activities are adequately regulated, the Polish authorities strictly prohibit the provision of gambling services to underage individuals. The legal gambling age in this jurisdiction is 18. The requirements for ensuring responsible gambling are listed under Article 15 of the Act on Gambling Games (page 15).
Licensed operators are expected to provide information about the dangers associated with gambling, as well as details about organizations that can help vulnerable customers overcome addiction. Mechanisms should be in place to help players exercise greater control over their gaming sessions.
Another requirement is to implement tools that prevent players from continuing their sessions after they have exhausted their entire budget. Both state-owned and private operators are expected to conduct detailed verification to ensure each customer is of legal age before access to gambling services is granted. Notices should be displayed in prominent locations to warn patrons that no individuals under 18 are permitted on the gaming floor.
Rules on Advertising
According to Article 29 of the Act on Gambling Games (page 40), it is “forbidden to advertise or promote cylindrical games, card games, dice games, games on gaming machines and betting.” The next section of the article clarifies that exceptions are made for the advertising of betting activities with a permit, on condition that the ads do not target minors.
Additionally, ads should not present gambling as a way to relax or solve financial or personal issues. Another condition stipulates that operators’ advertisements should not encourage citizens to place larger bets in order to increase their odds of winning cash prizes. Gambling commercials on radio and television are strictly prohibited between 6:00 am and 10:00 pm. No such ads can be printed on the covers of magazines and newspapers.
Advertising of these products is allowed only if it contains clearly displayed messages warning about the social and financial risks associated with participating in gambling activities.
Measures against Unauthorized Gambling Operators
The Polish government takes violations of its gambling laws extremely seriously. The local authorities are prepared to go to great lengths to restrict access to unauthorized gambling sites that target players from the country. A notable example is a measure that came into force in the summer of 2017.
The Polish authorities launched a public register that contains the domains of offshore operators servicing local players without permits. Access to the register is readily available to all Polish nationals. Local Internet service providers are bound by Polish law to restrict access to all gambling sites that have been added to the public register.
Article 15 of the Act on Gambling Games (page 21) states that the block should occur within two days following a domain’s entry into the database. However, offshore operators are granted the right to submit objections within two months after their domains have been added.
Special measures are also in place to prevent the funding of terrorist organizations and money laundering. Under the provisions of the Act on Gambling Games, all authorized gambling companies are required to present anti-money-laundering documents to prove the legality of their funds.
Remote gambling operators must offer only banking solutions that allow for verification of the funds’ sources. These include debit and credit cards and bank transfers. There are no specific regulations on cryptocurrencies at this time.
Gambling Regulators in Poland
Online and land-based gambling forms are regulated by the Minister of Finance. The Polish market lacks a separate gambling regulatory entity at present. It is the Ministry of Public Finance that issues casino and betting licenses to approved operators. The Minister of Finance has the power to revoke licenses upon establishing that gambling businesses operate contrary to Polish law.
The Minister of Finance also has the right to intervene upon request and determine whether a given activity should be considered gambling. Limited regulatory powers are assigned to the National Revenue Administration (NRA). The latter is an administrative body responsible for overseeing taxes and customs duties. The NRA also issues most administrative penalties in cases of licensing breaches.
Conclusion
Poland has an underdeveloped gambling sector that remains largely closed to foreign competition. As a result, Polish gamblers often resort to offshore websites, provided these sites have not yet been added to the Ministry of Finance’s blacklist. Most private gambling operators are reluctant to apply for Polish licenses because of the country’s severe regulatory conditions. Hopefully, Poland will soften its stance on gambling in the future and provide local players with a wider selection of locally authorized websites.