Polish tax on gambling winnings to expand under new proposal
The Ministry of Finance plans to increase the tax on gambling winnings and tax winnings from outside of Poland.
Poland.- The Ministry of Finance has announced plans to increase the withholding tax on gambling winnings from 10 to 15 per cent from January 2026. The draft proposal would also extend the levy to both domestic and international sources under amendments to the Personal Income Tax Act.
The change would apply across all gambling activities, including lotteries, sports betting and casino games, and the scope of the taxation would be expanded to include winnings from foreign and EU-based gambling platforms, meaning that Polish residents would face tax obligations on cross-border gambling income.
The ministry has framed the measure as a long-overdue update to a system that has remained unchanged since 2001, when the current 10 per cent tax on gambling winnings was introduced. Given the growth and diversification of the gambling industry, it argues that the tax structure must evolve to reflect market conditions.
It’s also positioning the reform as a behavioural taxation strategy aimed at curbing excessive gambling while boosting public revenue in the process. A final draft of the legislation is expected by the end of the year.
Poland already has one of the toughest gambling tax regimes in Europe with a 12 per cent tax on stakes for sports betting and a 50 per cent tax on net revenue from slot machines and table games for operators. For players, the tax on winnings is automatically withheld by licensed operators. Winnings below €520 are exempt from taxation, though this threshold may be revised.
It’s not clear what mechanism would be used to apply the tax to winnings from offshore operators. Legal experts and gaming industry representatives warn that higher taxes may erode the competitiveness of regulated platforms, potentially driving players toward unlicensed or offshore alternatives.
The gambling tax rise in The Netherlands this year has shown that an increased tax rate can lower tax revenue and push more players to the black market.
