Poland plans higher tax on gambling winnings by 2026

The Polish Ministry of Finance has announced its intention to raise the tax rate on gambling winnings from the current 10 percent to 15 percent starting in January 2026. The reform proposal, which would amend the Personal Income Tax Act, also seeks to extend the tax to cover gambling winnings earned from outside Poland. Under the draft plan, Polish residents would be required to pay the new tax rate on both domestic and international gambling income, whether obtained through licensed local operators or foreign and EU-based gambling platforms.

This initiative, described by the Ministry as a necessary modernization of the country’s gambling taxation framework, would mark the first significant change in over two decades. The existing 10 percent rate was introduced in 2001 and has remained unchanged since then, despite considerable growth and diversification in the gambling industry.

According to the Ministry, the update aims not only to reflect evolving market conditions but also to promote responsible gambling by discouraging excessive play through higher taxation. Officials have emphasized that the reform would serve both fiscal and social objectives: strengthening the state’s revenue base while acting as a behavioral deterrent against problematic gambling habits.

A final draft of the legislation is expected before the end of 2025, with the new rules scheduled to come into force at the beginning of 2026.

Scope of the proposed tax reform

The proposed increase would apply to all forms of gambling, including lotteries, sports betting, poker, and casino games. Importantly, it would also expand taxation to winnings obtained through online gambling platforms based outside Poland, including those established within the European Union.

Currently, Polish law taxes gambling winnings at a flat rate of 10 percent, which is automatically withheld by licensed domestic operators before payouts are made to players. Winnings below €520 are exempt from taxation, though the Ministry has indicated that this exemption threshold might also be subject to revision under the new framework.

The expanded tax net would capture cross-border gambling income — a move that reflects the Ministry’s recognition of the increasingly globalized nature of the online gambling sector. The rise of digital gaming and cross-jurisdictional platforms has blurred the lines between local and foreign markets, creating enforcement challenges that the government now seeks to address.

Ministry’s rationale and fiscal objectives

In its explanatory statement, the Ministry of Finance presented the tax increase as a necessary adjustment to contemporary realities. Officials noted that the gambling sector has changed significantly over the past two decades, both technologically and economically, and that the state’s fiscal mechanisms should adapt accordingly.

The Ministry also framed the measure as a tool for behavioral regulation. By increasing the effective tax burden on winnings, the government aims to temper the appeal of high-stakes gambling and encourage more moderate participation. At the same time, the reform is expected to generate additional revenue for public spending, particularly in areas such as healthcare, addiction prevention, and social programs.

A spokesperson from the Ministry reportedly stated that, “The current tax rate does not reflect the scale or profitability of the modern gambling market. Adjusting it is essential to maintain fiscal balance and ensure fair contribution from all participants.”

Potential challenges and enforcement issues

While the proposed tax reform has been welcomed by some policymakers as a step toward fiscal modernization, it has also raised concerns among legal experts and industry stakeholders. One of the most significant challenges lies in the enforcement of the new tax rules, particularly regarding winnings from foreign operators.

Legal specialists note that unless Poland establishes a clear mechanism for tracking offshore gambling income, compliance may prove difficult. Cross-border cooperation, information sharing with other EU regulators, and digital monitoring tools could be necessary to ensure that players accurately declare foreign winnings.

Industry representatives have also warned that higher taxes could unintentionally harm the competitiveness of licensed Polish operators. A steeper tax rate may incentivize players to seek unlicensed or offshore alternatives, where taxation is either lower or nonexistent. This, in turn, could lead to reduced revenue for the regulated market — an outcome contrary to the Ministry’s fiscal objectives.

Comparisons with other European jurisdictions

Poland already maintains one of the strictest gambling tax regimes in Europe. Licensed sports betting operators are subject to a 12 percent tax on stakes, while casino operators face a 50 percent tax on net gaming revenue from slot machines and table games.

For comparison, most EU countries tax gambling winnings at varying rates depending on the type of game and the operator’s licensing status. For instance, in France, winnings from licensed games are largely exempt for players but heavily taxed at the operator level, while in Spain, winnings are taxed progressively as part of personal income.

The proposed Polish model — combining withholding at the source and individual taxation — would place the country among the most heavily regulated gambling markets in the region.

Risks of increased black-market activity

Analysts have pointed to the experience of other countries where gambling tax hikes have led to unintended side effects. In the Netherlands, for instance, an increase in gambling tax rates earlier this year reportedly contributed to a decline in state revenue, as more players shifted toward unlicensed or offshore platforms.

A similar pattern could emerge in Poland if players perceive the regulated market as less attractive due to higher tax deductions. Industry associations have urged the Ministry to conduct a comprehensive impact assessment before finalizing the reform, to ensure that the tax increase does not inadvertently push consumers toward illegal operators.

Moreover, compliance monitoring in the digital era presents additional difficulties. Many offshore operators cater to Polish players through websites translated into Polish and payment systems compatible with local banking infrastructure, making enforcement particularly challenging.

Industry and legal community response

The gambling sector has reacted cautiously to the proposed changes. While operators acknowledge the government’s right to adjust taxation, several have expressed concern over the potential impact on player engagement and market competitiveness.

Legal advisors have also highlighted potential conflicts with EU principles of freedom of services. If Polish authorities attempt to tax winnings from operators legally licensed in other EU member states, questions may arise regarding compatibility with EU law. However, the Ministry has maintained that the reform aligns with Poland’s fiscal sovereignty and the country’s commitment to responsible gambling regulation.

According to one Warsaw-based gaming law expert, “The intention to modernize the tax system is understandable, but without a clear enforcement mechanism, the measure risks creating more uncertainty than benefit. If the government wants to tax foreign winnings, it must first establish practical ways to identify and verify them.”

Social and political considerations

The government has framed the reform as part of a broader national strategy to promote responsible gambling and reduce addiction risks. Rising public concern about gambling-related harms, especially among younger demographics, has added political weight to the Ministry’s initiative.

Non-governmental organizations working in the field of addiction prevention have cautiously welcomed the proposal, provided that a portion of the increased revenue is allocated to treatment and awareness programs. The Ministry has not yet specified how the additional tax proceeds would be distributed but has indicated that social policy considerations will play a role in budget planning.

Opposition parties, meanwhile, have called for a balanced approach that ensures fairness for both consumers and operators. They have urged the government to consult industry representatives before enacting any sweeping fiscal changes.

Implementation timeline and next steps

The Ministry of Finance is expected to finalize the draft legislation by late 2025, followed by a consultation phase with stakeholders, including operators, tax experts, and social organizations. Once approved by Parliament, the new regulations would take effect on 1 January 2026.

During the interim period, regulators are expected to develop mechanisms for monitoring cross-border gambling activity and reporting foreign winnings. Public information campaigns may also be launched to educate players about their new tax obligations under the revised framework.

The final details — such as the exact method of declaring foreign winnings and possible updates to the exemption threshold — remain under discussion.

Outlook for Poland’s gambling landscape

If implemented effectively, the reform could reshape Poland’s gambling landscape by reinforcing regulatory oversight and increasing state revenue. However, the measure’s success will largely depend on the government’s ability to balance fiscal objectives with market sustainability and player protection.

For policymakers, the challenge lies in designing a system that captures fair tax contributions without discouraging participation in the licensed market. For operators, it will be crucial to adapt to the evolving regulatory environment while maintaining competitive offerings that attract local players within the legal framework.

Ultimately, the proposed tax reform signals Poland’s commitment to aligning its gambling laws with modern economic and technological realities — even if that means confronting the complex challenges of cross-border digital gaming.

Conclusion

The Polish Ministry of Finance’s proposal to raise the tax on gambling winnings from 10 to 15 percent marks a decisive shift in the country’s fiscal and regulatory policy. By extending the levy to include foreign and EU-based winnings, the government aims to align taxation with the realities of a globalized digital gambling market. At the same time, the reform seeks to promote responsible gambling behavior and strengthen public finances.

However, the effectiveness of the measure will depend on careful implementation and the development of clear enforcement mechanisms. Without efficient oversight, the reform risks driving players toward unregulated offshore platforms, undermining both state revenue and consumer protection. Ensuring cooperation with other jurisdictions and maintaining a balanced taxation approach will be crucial to the reform’s long-term success.

If managed prudently, this reform could help modernize Poland’s gambling tax system, providing a sustainable source of public revenue while reinforcing the principles of fairness, transparency, and social responsibility.

FAQs

What is the proposed new tax rate on gambling winnings in Poland?
The Ministry of Finance has proposed increasing the withholding tax on gambling winnings from 10 percent to 15 percent starting January 2026.

Will the tax apply to winnings from foreign operators?
Yes, the draft legislation would extend taxation to winnings from both domestic and international gambling platforms, including EU-based operators.

When was the current 10 percent tax introduced?
The existing rate was implemented in 2001 and has remained unchanged for over two decades.

Will small winnings still be tax-free?
Currently, winnings below €520 are exempt, but the Ministry has suggested that this exemption threshold may be reviewed.

Why is the government increasing the gambling tax?
Officials argue that the tax system needs to reflect modern market conditions and act as a behavioral measure to discourage excessive gambling.

How will the government enforce tax collection from foreign winnings?
Enforcement mechanisms are still being discussed and may involve cross-border cooperation and improved monitoring of digital transactions.

Could higher taxes push players to offshore markets?
Industry experts warn that higher tax rates could make unlicensed or offshore platforms more appealing, potentially undermining the regulated market.

How does Poland’s gambling tax compare with other EU countries?
Poland already has one of the strictest tax regimes in Europe, with high operator levies and now a proposed increase in player withholding taxes.

When will the new law take effect?
If approved, the revised tax regime is expected to take effect on January 1, 2026.

Will the additional revenue support social programs?
The Ministry has indicated that new revenue could fund public services, including responsible gambling initiatives, though specifics remain undecided.