Polish President Karol Nawrocki has vetoed a proposed increase in gambling taxes, citing concerns over the financial burden on citizens.
Earlier this month, Parliament passed amendments to the Public Health Act and Personal Income Tax Act that would also have raised the country’s sugar tax.
Under the proposed changes, winnings from competitions, games, and mutual betting would have increased from 10% to 15%.
Although framed as health-related measures, President Nawrocki argued the primary purpose was fiscal, aimed at addressing the growing public finance deficit.
“In my Plan 21, I announced I would not sign any bills that raise taxes for Poles,” Nawrocki said regarding his veto.
He added: “The goal … is obvious: to close the huge budget hole for which the government is responsible. After 11 months, we have a deficit of over PLN240 billion ($64.8 billion). Instead of tightening the tax system, the government is reaching into citizens’ pockets.”
The future of the Personal Income Tax Act amendments now depends on further parliamentary action.
Zbigniew Bogucki, head of the Presidential Chancellery, described the vetoes as “constructive,” stating they compel the government to improve its approach.
“If these solutions had stipulated that all the money coming from the surplus of these taxes would go to health care, which is in a terrible state, then the President would probably have made a different decision. But this money was supposed to fill a huge budget hole that this government itself had dug,” Bogucki said.
Industry observers welcomed the decision, suggesting maintaining the existing tax rate helps support a competitive regulated gambling market.
Marek Plota, an attorney at RM Legal, noted: “Avoiding a tax increase helps ensure that licensed products remain commercially attractive and limits incentives for players to seek alternatives in the grey market. From a market perspective, this contributes to regulatory stability and supports channelisation objectives.”
Poland currently has over 50,000 unlicensed gambling domains, with sports betting open to private operators and only one legal online casino operated by the state-run Totalizator Sportowy.
The government has recently cracked down on influencers promoting unlicensed gambling brands and on payment providers facilitating these operations.
