Poland to open door to foreign-based operators
Draft amendment to Polish Gambling Act seeks to remove major hurdle for international operators
Foreign operators have been put on alert after the Polish Government published a draft amendment to its Gambling Act that would remove one of the biggest barriers to entry for non-Polish operators.
The amendment, if passed, would eradicate a rule that requires remote operators to establish a company within its borders “ a restrictive measure which has so far limited the number of licence holders to just four.
As a result, any operator incorporated as a limited liability company or joint-stock company registered within a European Union member state or Norway, Iceland and Lichtenstein would be able to apply for a licence.
However, for tax purposes operators would still need to hold a ‘branch’ within the country with all books and records made available in the Polish language.
The amendment also seeks to increase operators’ responsible gambling obligations with audio alerts should a player be active for more than an hour and additional KYC measures introduced.
The development should go some way to appease the European Commission which last year warned Polish authorities that its current framework could be in breach of European law.
“This change is long overdue, especially in the light of ECJ rulings regarding similar constraints existing in the legal frameworks of other EU member states which were found to be contrary to EU regulations,” Anna WietrzyÅska-CioÅkowska, DLA Piper gaming lawyer, said.
“The Polish government believes that the change will increase the willingness of EU betting operators to establish a branch in Poland and apply for a Polish licence,” she added.
The draft amendment was this week submitted for inter-ministerial consultation and further discussion.
With a population of roughly 40 million, Poland is a potentially lucrative market although with current tax rates varying between 2.5% of revenues for horse racing and as much as 12% of revenues for other sports, operators will still have food for thought.
Last year Intralot subsidiary Totolotek became the fourth operator to gain a remote licence, joining Fortuna, Milenium, and STS.