I would like to greet our appreciated page reader, today I’m gonna introduce you one of the main business opportunities in Poland interested investor can do. I will give you an overview on legislative framework of gambling regulations in Poland whereby I will depict main categories of gambling games in Poland. It is also worth to take into consider what regulatory objectives exists for gambling business in Poland. You are also free to choose gambling Products in Poland and I’m gonna show you exactly all of them. Here, in Poland, as in many developed countries we have to kind of starting gambling business ability they are : land-based gaming in Poland and Online gambling In Poland. I have left to say good lucks to you, get introduced our given information below and in case of interest contact us.
Overview on Legislative framework of gambling regulation in Poland
We recommend to carefully get introduced legislation for starting a business in this field and not only this we appeal it generally. you should know what legislation applies on gambling business in Poland and take into consider pros and cons before you make a decision. Gambling business as much land-based as online gambling is regulated in Poland, except for certain provisions on the regulatory criminal liability and oversight authority, except for the Law on Gambling on 19 November 2009. The game law provides strict rules on gambling and sets strict requirements for gambling operators, with severe penalties being imposed for violating them. Polish regulations on gambling are considered to be the most restrictive in Europe.
The current state of regulation is partly due to the conditions under which the gambling law was adopted. The gambling law was the government’s response to the “gambling” scandal involving lobbying for changes to games and betting earlier, which regulates the gambling industry before the gambling law enters into force.
The purpose of the new law was to restrict gambling, arguing that the government did not influence lobbying. Significant updates to the gambling law have introduced changes that came into force in 2017. This includes a blocking mechanism that restricts access to unlicensed online gambling operators ’websites, as well as the obligation of tax service providers to discontinue the delivery of these services to such operators, including. Other changes
The purpose of the gambling law is to perfectly manage all aspects of the gambling sector. In particular, it provides:
- Specific types of regulated gambling and betting.
- How to offer specific types of gambling products and restrictions on the supply of gambling products.
- Requirements and procedures for obtaining gambling licenses and permits, as for operators, as well as for those wishing to train directly in gambling.
- State tax imposed on gambling operators.
- Gambling taxes.
- Administrative penalties for violating the law.
Gambling law applies to both land and online gambling. Gambling operators also have other general provisions of the law, such as the July 18, 2002 Electronic Services Act, which regulates all online services.
Definition of main categories of gambling games in Poland
Gambling Law refers to “gambling games” that consist of four main categories:
- Betting. This game is being played for cash or prizes, and includes of two subcategories, they are:
- totalizator systems
2. Card games. three of them are considered to be gambling games, they are
- Black Jack
3. Games of chance.This is the umbrella term for “games, including programs for the Internet, for cash or natural prizes, the outcome of which depends in particular on chance.” In practice, the prevailing view of the courts is to interpret the limitation of this definition: when the element of chance occurs in a game, even in a minority, the game is a chance to play. In addition to the general definition, gambling law also lists specific forms of gambling that are considered random games. It includes:
- number games
- cylindrical games
- dice games
- cash bingo
- raffle bingo
- cash lotteries
- raffle lotteries
- promotional lotteries
- Online gambling
There is no specific definition of online gambling in the gambling law. The gambling law simply contains provisions that only apply to “games played over the Internet”, but this term is not further explained.
Online betting and advertising lotteries are the only form of online gambling that is currently allowed to be organized by private organizations. Other online gambling is limited to individuals, but a state-owned company has the exclusive right to offer them.
2. Land-based gambling
Most of the gambling law applies to land play. The law does not specifically differentiate between land-based gaming and online gambling, however, some provisions apply exclusively to online gambling and betting and are not used for surface operations.
Regulatory Objectives for Gambling Business in Poland
We also took into account to provide information about the regulatory or government authorities that are responsible for supervising gambling in Poland.
The General Supervisory objective of Gambling is the responsibility of the Minister, who is competent with the Minister of State Finance (currently the Minister of Finance determines this area of government). It is the responsibility of the Minister, including:
- Compilation of decisions as a classification of certain products, as a gambling product
- Issuance of a casino license and permission to operate Bingo salons and bets.
In Poland, the daily surveillance of the gambling market, as well as enforcement, is carried out by the National Revenue Administration (NRA), the state body responsible for taxes and customs. Under the NRA, directors of regional offices of the Revenue Administration have the right to issue permits for certain gaming products. In general, the directors of the regional offices of the Revenue Administration act on the gambling market in Poland, while the heads of the tax and customs services are responsible for the observance of the rules of the gambling system for the imposition of fines.
Gambling Products in Poland
Here are several kinds of Gambling Products in Poland and for each of them here is different requirements, let’s take a look at and then tell us which of them would you choose?
Poker Law classifies poker as one of the card games. However, the term “poker” and the rules of the game itself are not yet defined. Precedent law also does not use a specific definition (in general, all card games that resemble poker according to their rules) are considered poker).
Playing poker is strictly regulated if it includes cash or any kind of prizes (otherwise the gambling law does not apply). The game law provides an exhaustive list of poker game legal forms, as follows:
- In tournaments that may be organized by the casino, inside or outside the casino building.
- The game is played against the casino, in its building.
- In tournaments organized by other persons besides casinos, a form which is permissible only when awarding small prizes.
there are to kind of Betting you can take advantage with:
- totalizator systems
Winning books is related to the outcome of the sport or other events. The gaming law stipulates that the production of a bookmaker represents bets or cash prizes, which include guessing various events, including virtual events, in which participants pay bets, and the value of prizes depends on interest and prize as agreed by the person receiving the bet and the shareholder. ”2017 From April 1, computer-generated “virtual events” can be used as a basis for betting levels. Operators are prohibited from accepting bets on the results of a number of games. Book registration can be done both over the ground and online. Permission is required before the operators start.
- Totalizator systems. This is “betting or cash prizes consisting of guessing the results of sports competitions between humans or animals where participants pay bets and the value of the prize depends on the stakes paid.”
For private individuals, the following games may be offered only within casinos and, therefore, their organization (with variation based on them) requires a casino license. The state-owned company is also exclusively offered online.
- Cylindrical games. This type of game, where “participation consists of choosing numbers, signs or other distinguishing marks, the value of the prize depends on the predetermined ratio of share and prize, and the outcome of the game is determined by a rotating device or online games.”
- Dice games. This is not defined by the game law.
- Slot machine games.
Slot and any other machine games
Under the Gambling Act, gaming slot games are defined as “games that are played using a mechanical, electromagnetic or electronic device, including computers, as well as games played online when their rules are in accordance with the rules of gaming machines, cash payments or natural prizes where the game is a chance Element ”. As the definition is broad, many types of electronic games can be said to be gaming machines according to the gaming law if they are offered cash or any kind of prizes.
A moreover definition of gambling law defines that gaming devices are “games that are played using mechanical, electro-mechanical or electronic devices, including computers, as well as gaming on the Internet, when their rules comply with the rules of gaming machines for commercial purposes, even , If there is no winning cash and / or natural prizes, but the game is “random”. This definition is particularly broad, and he argues that it even includes some mechanics. “Ordinary” (not toy) computer games such as “loot boxes” “(In November 2018, the regulator rejected these claims, albeit only in a press release that has no official legal force).
Gaming slot games are only allowed in casinos or slot machine salons, the latter being exclusively managed by a state-owned company.
here we have three forms of Bingo under the law, they are:
- Telebingo. This is a game “where you buy a game ticket, which includes a random set of numbers or signs, from a predetermined number of numbers or signs, where the game is played across the country and the game is played on TV and organized. We offer cash or natural prizes.”
- Cash Bingo. This is a game “where you participate by purchasing a random set of numbers from pre-determined numbers, where the game is offered by an organized person only with cash prizes, the value of which depends on the sum of the bets paid.”
- Raffle Bingo. This is a game “where you participate from the pre-determined random number of sets to purchase a random set, where the subject of game organization offers only natural prizes.”
- cash lotteries. These are games “where you can buy a coupon or other game ticket and the lottery entity offers only cash prizes”
- Raffle lotteries . These are games “where you can buy a coupon or other game ticket and the lottery entity offers only in-kind prizes”
- Promotional lotteries . These are games “where you can participate in a free lottery by purchasing a ticket for a product, service or other games, and the subject of organizing the lottery offers cash or nature prizes.”
Land-based gambling in Poland
Maybe you wander what is licensing regime for land-based gambling business. so let’s take a look at.
Available licenses for land-based gambling
Different licenses or permits are required, according to the type of game, for instance:
- A casino gaming license is required for still casino games.
- A Bingo gaming salon permit is required for a cash Bingo.
- betting operator’s permit is required for providing betting operations
The legal requirements for these licenses / permits are similar, but it is most difficult to obtain a casino license.The number of casinos and bingo salons is limited. According to the gambling law, more than one casino can operate in one place (village or city) with a population of 250,000. Each subsequent maximum number of casinos per capita will increase by 250,000 per population (for example, two casinos are available for up to 500,000 inhabitants, three casinos are available for up to 750,000 inhabitants, etc.), but there may not be more than 650,000 casinos per province. .
Casinos can also pass naval vessels and passenger ferries under the banner of Poland, provided that these games start no later than 30 minutes after departure from the departure port and end no later than 30 minutes before arrival at the destination port. The number rules are similar for Bingo salons, but the limit is one salon per 100,000 inhabitants, and no more than one salon 300,000 in one province.
If more than one person requests a license or permit with quantitative restrictions, the Minister of Finance must arrange a tender procedure.
For gaming salons (owned by a state-owned company), the number of gaming machines that can operate in them is also limited, and more than 1,000 people are allowed in each city . There are no restrictions on the number of bets allowed. each casino license is valid for only one specific casino. This rule also applies to permits for Bingo salons. Similarly, one permit is valid for a specific number of betting points.
Many games (such as lottery bingo, lottery lottery, promotional lottery and / or premium lottery lottery) require a single permit to be issued for each instance of individual games. Lottery bingo, lottery lottery, promotional lottery and / or premium lottery can be organized locally or for the whole country.
Each license or permit also requires the approval of the terms and conditions of the toy product from the Minister of Finance or the Director of the Regional Office of Competent Revenue Administration, depending on what the target gambling product is.
Some games do not require a license or permission and it is enough to receive a pre-notification.
Notification to the competent head of the Customs and Tax Office must be notified at least 30 days before the scheduled date of the lottery, if the lottery draw, if the total value of the prizes does not exceed any:
1. 100% of the base amount (4,811.42 PLN for 2019).
2. 15 times the base amount (17,171.30 PLN for 2019) if it is owned by a public benefit organization.
Casino licenses and permits for casino, betting and poker tournaments are issued by the Minister of Finance. Permission to organize lotteries, premium rate lotteries, lottery bingo or promotional lotteries is issued by the director of the competent regional office of the Revenue Administration.
The procedure for all types of gaming licenses, permits and notifications includes the submission of the application and the required documents to the relevant authority.
Different licenses and permits have different requirements. However, in general, the application must contain:
- Details of the applicant.
- Details of the planned operation, game or lottery (start date or duration, location, etc.).
- Does not reimburse or declare tax, customs or social security debt.
- Documents proving the legality of the applicant’s financial resources.
- Economic and financial study of planned investment and expected profitability (in case of casino licenses and Bingo salon and betting permits).
- Certificate or confirmation that the applicant’s transaction corresponds to the money laundering and financing of terrorism regulations (in the case of casino licenses and bingo salons and betting permits).
- Financial statement for the applicant’s previous turnover.
- Compile the terms and conditions of the game (s) that must be certified by the regulatory body.
In general, the official requirements for a casino license, Bingo salon permit, or operator’s license are much higher than for a single lottery / game. The first must provide (among other things):
- Documents confirming the right to use the place where gambling is planned (for example, lease agreements).
- Information on the financial situation of the applicant and his shareholders.
- the planned business objectives
Upon submission of the application to the relevant authority, it shall be considered and a decision shall be taken which either grants or denies the license or permit. The applicant may appeal the decision. Decisions regarding licenses or permits must be made within six months from the date of application (except for decisions relating to advertising lotteries, premium rate lotteries or lotteries, which must be made within two months from the date of application. Application). However, according to the general rules of the Polish Administrative Procedure Code, the restriction of this time is not mandatory and in specific cases the decision can be made by the government.
Fees must be paid to obtain a license or permit (see below, License Duration and Cost: Fees). For some gaming products, operators wishing to obtain a license or permit must provide a warranty. For casino, bingo salons and betting operators, this can take either a bank deposit or a bank / insurance guarantee with an amount of about 1 million PLN (in the case of a fine casino application). Security is designed to cover possible gambling fees and / or player requirements. Organizing lottery organizers, premium rate lotteries, raffle lotteries and raffle bingo should have a guarantee of paying prizes up to the total value of the prize.
In addition to the requirement to obtain a license or permit, gambling operators must submit an authorization for the issuance of a license or a permit.
If only a message is required, the applicant can proceed with the operations without obtaining any permission from the authorities. However, for a charity lottery and lottery bingo, the organizer must submit to the government a report on how the income generated by the organization of the game was used for the purpose of the charity.
Eligibility for land-based gambling
Ordinary games, cash lotteries, telebingo and slot machines (except in these casinos) are subject to state monopoly and, therefore, it can only be offered by a state-owned operator.
In general, only joint stock companies and limited liability companies that have offices registered in Poland can operate casinos, bingo salons or betting points. In such companies, the holder of shares or stocks may be only natural persons who are citizens of an EU / EEA member state, or persons who have their registered office in an EU / EEA member state. Casinos, bingo salons or betting outlets may be operated by a joint stock company or limited liability company (or similar) registered in another EU / EEA member state, provided that they appoint a representative (individual or local or registered person). In Poland) or establish their own branch in Poland. A representative in Poland must be appointed on the basis of a written agreement with this operator.
Surveillance board is needed for casinos, Bingo salons and operating companies. No preferred stock / stock is allowed and only registered shares are allowed.
The minimum equity requirement is for casino, bingo salons and betting operators ($ 4 million for casinos, 2 million PLN for bingo salons and betting operators).
Officials of such companies (whether they are members of the Board of Directors of the Casino Company, the Supervisory Board or the Audit Committee) must be citizens of Poland or citizens of another EU / EEA member state.
Shareholders who own casino, bingo salon or betting operations, as well as the governing board, supervisory board or audit committees of those companies operating in the casino, bingo salon or betting operations, or other company’s share capital may not exceed 10%.
- Substantiate concerns about state security, public order, protection of the state’s economic interests, as well as concerns about regulating money laundering and counterterrorism funding (require the Minister to grant a license or permit to the police or other authorities).
- Accused of intentional crime or intentional fiscal crime in any Member State of the European Union.
- They have produced criminal proceedings in the context of money laundering or terrorist financing.
- They have had a license or permit for other gambling (or, in the case of a natural person, of the companies in which they operated) have been revoked in the last six years for breach of their terms.
The relevant person may be required to provide an official certificate to confirm that any of them have not been used.
In general, premium rate lotteries can be organized only or:
- joint stock companies or limited liability companies that have registered offices in Poland.
- joint Stock or limited liability companies (or similar) registered in another EU / EU Member State, provided that they appoint a representative (natural person or registered person or natural person in Poland) or establish a branch office in Poland.
Individuals wishing to apply for a license or permit must certify the legality of their capital and that they are not subject to debt, taxes, customs duties and social security contributions. For casinos, bingo salons, betting and premium rates for lottery operators, it is also necessary to verify compliance with the legislation on accounting, money laundering and terrorist financing.
Advertising lotteries, raffle lotteries and lottery bingo can be organized by any individual, legal entity or legal entity, without legal entity, without any special restrictions. Individuals who run or represent an organization that organizes a lottery lottery or a lottery bingo should not be convicted of premeditated crime or premeditated fiscal crime in any of the EU Member States.
Duration of License and Costs
- Three months, for poker tournaments.
- Two years, for raffle lotteries, raffle bingo, promotional lotteries and premium rate lotteries.
- Casino licence. The fee is 32,000% of the base amount (PLN1,539,654.40 for 2019).
- Bingo saloon permit. The fee is 5,500% of the base amount (PLN264,628.10 for 2019).
- Betting permit. The fee is 2,000% of the base amount (PLN96,228.40 for 2019) plus 50% of the base amount (PLN2,405.71) per each bet making point.
- Raffle lottery, raffle bingo. The fee is 100% of the base amount (PLN4,811.42 for 2019), or if a game is only held within one province, 50% of the base amount (PLN2,405.71 for 2019).
- Promotional lottery, premium rate lottery. The fee is 10% of the total value of prizes, but not less than 50% of the base amount (PLN2,405.71 for 2019).
- Poker tournament. The fee is 100% of the base amount (PLN4,811.42 for 2019).
Online Gambling in Poland
Available licenses for land-based gambling
The only available permit for online activities is a gambling and advertising lottery. There are no restrictions on the number of online bets or the number of advertising lottery operators. Betting permits are issued on special websites where betting is offered, as indicated in the application, and advertising lottery licenses are valid for only one lottery.
Eligibility for online gambling
Requirements for online betting and advertising lotteries are the same as for their land equivalents
The procedure for obtaining a betting operator’s permission for an online bet or advertising lottery is the same as for their land equivalents. However, individuals who wish to obtain permission for online betting must address certain specific issues in their application, such as the age control mechanism of the participants (in practice, an ID scan is required to register most operators).
The guarantee required for online betting operators is PLN480,000.
Duration Of License and Costs
Duration. The online betting license is valid for six years, and the advertising lottery license covers only one lottery, its term may not exceed two years.
price. For an online trading license, the minimum fee is equal to 9,000% of the base amount (PLN433,027.80 in 2019).
If the bet is limited to only one website, the fee is calculated as follows:
- 2,000% of the base amount separately to determine the bet.
- 2,000% for online bets.
- 5,000% on each website used for betting services.
- For an online advertising lottery, the fee is the same as for a plot of land. This is 10% of the total value of the awards, but not less than 50% of the base amount (2019 PLN2,405.71).