Polish President Blocks Proposed 15% Hike on Gambling Tax

Poland’s President Karol Nawrocki has rejected a proposed increase in gambling taxes. The changes also targeted higher sugar duties and were intended to help close an estimated PLN240 billion ($64.8 billion) gap in the state budget.

President Karol stopped revisions to the Public Health Act and the Personal Income Tax Act that lawmakers had passed earlier this month. Among the measures was a plan to lift the tax on individual gambling winnings from 10% to 15%, together with steeper charges on sugar-linked products.

The Polish president issued the veto on December 18, noting that the proposals would unfairly strain households. He argued they were framed as public health reforms, but were chiefly aimed at easing fiscal pressures across the country’s broader economic landscape.

Presidential Opposition Centers on Mounting Budget Concerns

Lawmakers described the rejected amendments as public health measures, but Nawrocki said their real purpose was fiscal. He linked the tax proposals to efforts to ease strained state finances. Apparently, the deficit has exceeded the initial PLN240 billion after 11 months. The Polish head of state further broadened his criticism when addressing the sugar tax element. He argued the government was seeking extra revenue to plug a growing budget gap. The intention wasn’t to genuinely advance health policy.

Nawrocki explained that the next steps for the proposed changes to the Personal Income Tax Act rest with Parliament. Poland’s rules permit lawmakers to overturn a presidential veto if three-fifths of the Sejm support it. At least half of the deputies have to be present. This leaves open the possibility that higher gambling taxes may resurface later.

The head of the President’s Chancellery, Zbigniew Bogucki, said the vetoes were intended to encourage further legislative work rather than block reform. Bogucki mentioned that the decision might have changed if additional tax income had been clearly directed toward the struggling health care system. He said in part:

“Had the proposals ensured that all surplus tax revenue would be directed to the struggling health care system, the President might have decided differently. But the funds were instead meant to patch a massive budget gap created by the government itself.”

Gambling Tax Veto Seen as a Boost for Regulatory Stability

Experts across the sector reacted positively to Poland’s decision not to raise gambling taxes. Most noted that keeping rates unchanged could preserve the competitive position of the regulated gaming industry.

Marek Plota, an attorney at RM Legal in Wrocław, mentioned that sidestepping a tax hike keeps licensed offerings financially appealing and reduces the motivation for players to turn to unregulated options. He added that stable taxation strengthens regulatory certainty from a market standpoint and improves channelization into legal platforms.

Data from the Ministry of Finance’s blacklist indicates that more than 50,000 unlicensed websites are currently operating in breach of Polish regulations. While the country allows private companies to offer sports betting, only one authorized online casino exists. It is run by the state-owned operator Totalizator Sportowy. 

Polish authorities have also intensified enforcement actions against influencers advertising illegal gambling services in recent months. The same applies to payment firms that facilitate transactions for those operators.