A legislative proposal aimed at increasing the tax on betting winnings in Poland has been firmly rejected by President Karol Nawrocki.
The controversial measure, which sought to raise the tax rate from 10% to 15%, was part of a broader package of amendments to the Personal Income Tax Act. The rejection effectively halts the government’s plan to extract more revenue from the gambling sector to address the national deficit.
Protecting Citizens from Fiscal Burdens
President Karol Nawrocki’s decision is rooted in a pledge to shield Polish citizens from higher taxes. In his statement regarding the veto, he criticized the government’s approach to managing the budget shortfall, which currently exceeds PLN 240 billion ($64.8 billion).
“In my Plan 21, I announced I would not sign any bills that raise taxes for Poles,” Nawrocki declared. He argued that the state should not attempt to fix its fiscal errors by “reaching into citizens’ pockets.”
Relief for the Regulated Market
The veto is a significant victory for the licensed betting industry. Legal experts and operators had raised alarms that a 50% increase in the winnings tax would severely damage the competitiveness of legal sportsbooks. With over 50,000 blacklisted illegal domains already targeting Polish players, the industry feared that higher taxes would inevitably push consumers toward the grey market, where no taxes are deducted.
Uncertainty Remains
While the immediate threat has been neutralized, the political battle is not over. The Sejm (Polish parliament) retains the power to override the presidential veto with a three-fifths majority vote. However, for now, the status quo remains, much to the relief of major operators like STS Holdings and the wider regulated market.
