Poland's online gambling market has experienced significant regulatory reforms and market expansion in recent years. Despite facing a strict legal framework and challenges from the grey market, Poland is gradually establishing a more regulated and transparent gambling environment.
Regulatory Evolution and Market Opening
Poland's gambling regulation began with the implementation of the Gambling Act in 2009, which imposed strict restrictions on gambling activities, especially online gambling. The 2017 amendment further strengthened regulation, establishing a state monopoly on online casino games operated exclusively by the state-owned company Totalizator Sportowy through its platform Total Casino.
However, the online sports betting market is open to private operators, allowing them to operate legally after obtaining a license issued by the Ministry of Finance.
Challenges of the Grey Market
Despite strict regulatory measures, Poland's online gambling market still faces challenges from the grey market. According to a report prepared by Ernst & Young for the Polish Gambling Grey Zone Liquidation Association, the revenue from the grey market for online casinos in Poland exceeded 100 million Polish zlotys in 2023. These illegal operators do not pay taxes in Poland, causing financial losses to the state and distorting market competition.
Market Development and Growth of Legal Operators
In recent years, the Polish government has taken measures to combat illegal gambling activities, including establishing a blacklist system and blocking unauthorized gambling websites. These measures have prompted some foreign operators to exit the market or apply for legal licenses to continue operations.
As of now, Poland has several licensed online sports betting companies, such as STS, forBET, and Totolek. Among them, STS is the largest gambling company in Poland, holding a 45.8% share of the Polish sports betting market in 2020.
Advertising Restrictions and Market Promotion
Poland imposes strict restrictions on gambling advertising, prohibiting gambling advertisements on television and other media, except for sports betting. However, sports betting operators can still market through sponsoring sports events and teams.
For example, STS sponsors the Polish national football team and several clubs, enhancing its brand influence.
Future Outlook
Poland's online gambling market is gradually developing under strict regulation, with the growth of legal operators and government crackdowns on illegal activities helping to establish a healthier market environment. In the future, with further improvements in regulation and continuous market expansion, Poland is expected to become one of the key online gambling markets in Eastern Europe.
