The Republic of Poland is a unitary civil law state. Principal Law for the regulation of the gambling industry is the Law of 29 July 1992 on games and mutual wagering.
Law of 29 July 1992 on games and mutual wagering defines the terms of organization and principles for pursuing economic activity within the scope of chance games, mutual wagering, slot machine games and slot machine games with low prizes:
Chance games are according to this Law in Poland, those games where the prize is either money or awards and where the final result particularly depends on chance and the terms of which are stipulated in individual regulations. Among these games are the following:
1) number games where the main prize is won by choosing the correct numbers, signs or other marks and the amount of prizes depends solely on the total amount of the prepaid stakes;
2) cash lotteries where participation is conditioned by the purchase of a special ticket or other participation receipt and the entity that organises the lottery offers only cash prizes;
3) video lotteries that are organised in the video terminal networks that are connected with a central reporting and monitoring system, participants must purchase a ticket or another participation receipt and they can choose numbers, signs or other marks and the entity that organises the video lottery offers only cash prizes;
4) telebingo, where participation is conditioned by the purchase of a participation receipt that contains the random sets of numbers or signs from the predefined sets of numbers or signs; the game is held nationwide with a drawing of lots which is broadcasted on television and the entity that organises the game offers cash prizes or awards;
5) award lotteries, where participation is conditioned by the purchase of a lottery tickets or other participation receipt and the entity that organises the video lottery offers only awards;
6) cylindrical games, where participation is conditioned by choosing the numbers, signs or others marks and the amount of a prize depends on the pre-determined stakewinnings ratio and where the result of the game is determined by means of rotary device;
7) card games: black jack, poker, baccarat;
8) dice games;
9) cash bingo, where participation is conditioned by the purchase of random sets of numbers and the entity that organises the game offers only cash prizes, the amount of which depends on the total amount of the pre-paid stakes;
10) raffle bingo, where participation is conditioned by the purchase of the random sets of numbers and the entity that organises the game offers only awards;
11) promotion lotteries, where participation is conditioned by the purchase of goods, services or other participation receipt and this way the participation in the lottery is nonpayable and entity that organises the game offers cash prizes or awards;
12) audiotele lotteries, where participation is conditioned by the payable phone connection and the entity that organises the game offers cash prizes or awards.
Mutual wagering shall mean betting for cash winnings that are determined by guessing:
1) the results of a sports competition, in which the competitors are either people or animals, the participants pay stakes and the amount of the prize depends on the total amount of the pre-paid stakes- totalizator systems;
2) the occurrence of different events, where the participants pay stakes and the amount of the prize depends on the stake-winnings ratio that is agreed between the bookmaker and a stake payer – bookmakings services.
The organisation and conduct of the economic activity within the scope of chance games, mutual wagering, slot machine games or slot machine games with low prizes is allowed only on the principles stipulated in the Law.
The entities conducting their economic activity within the scope of the games and betting on the basis of the granted permit, and the entities organising games and lotteries that constitute the state monopoly shall be subject to the tax on games. Tax duty connected with the tax on games shall commence at the moment of commencing the conduct of business activity. Tax on games shall constitute the state budget income. Tax duty referred shall cease at the moment of the business activity cessation. The tax duty regarding the other taxes and fees shall be determined according other respective tax laws. Poland’s corporate tax for the year 2005 is 19%.
The tax base regarding the tax on games shall be calculated as follows:
1) in lotteries and telebingo game – the sum of receipts collected from the sale of lottery tickets or other participation receipts;
2) in number games – the sum of all the pre-paid stakes;
3) in video lotteries – the difference between the amount paid or credited in terminal memory and the amount of winnings gained by the participants of games;
4) in cash bingo game – the nominal value of the cards purchased by the company;
5) in raffle bingo game – the nominal value of the cards used for the game;
6) in cylindrical games, dice games and card games the difference between the cash payments in virtue of card exchange in a counter and on a game table and the amounts paid out for the returned tokens at the counter;
7) in slot machine games – the difference between the amount collected from the tokens exchange or paid in at the counter and credited in the slot machine memory or paid into the slot machine and the amount of winnings gained by the participants of games;
8) in poker game, during which the participants play against each other and the casino organises the game – the amount of casino receipts;
9) in mutual wagering – the sum of all the pre-paid stakes.
The tax on games rate amounts to
1) 10% in case of award lotteries, raffle bingo games, cash bingo games and mutual wagering
2) 15% in case of cash lotteries and bingo games
3) 20% in case of number games
4) 45% in case of games organised in casinos and slot machines games salons and in case of video lotteries
The tax on games rate in virtue of conducting the economic activity in the scope of mutual wagering regarding the sports competition of animals, on the basis of permits granted exclusively for the organisation of such competitions amounts to 2%.
The tax payer who have the permits for the organisation of the slot machine games with low prizes pay the tax in a form of a lump sum amounting to the equivalent of:
1) 50 euro – for the period until 31 December 2003,
2) 75 euro – for the period from 1 January 2004 to 31 December 2004
3) 100 euro – for the period from 1 January 2005 to 31 December 2005
4) 125 euro – for the period from 1 January 2006
on a monthly basis for the games on every slot machine.
The euro exchange rate shall be set with the application of the foreign currencies buying rate that is announced by the National Bank of Poland, as of the last day of the month preceding the month during which the tax payment is to be made.
In the games which conduct of the economic activity within the scope of number games, cash lotteries, video lotteries and which is determined by the government monopoly the editional payments are established amounting to:
1) 25% of a stake or a price of a ticket or other participation receipt – in number games,
2) 10% of a stake or a price of a ticket or other participation receipt – in video lotteries, cash lotteries and telebingo.
The obligation of collection and transferring the additional payments in virtue of conducting a video lottery shall arise 6 month after the date of commencement of the economic activity in this area. The entities organising the games referred above are obliged to transfer the revenue from the additional payments onto the separate special receipts accounts operated by
1) the minister responsible for the cultural matters and national heritage protection – amounting to 20%
2) the minister responsible for physical education and sport – amounting to 80%.
The receipts from the additional payments referred to above shall bee assigned exclusively for the promotion and support for:
1) nationwide and international artistic events, inclusive of educational events,
2) literary creation and periodicals, as well as for the activities in favour of the culture of Polish language and developing the reading habit, supporting the cultural magazines and low-impression publications
3) activities in favour of the Polish national heritage protection,
4) young writers and artists,
5) activities undertaken to enable the access to cultural values for handicapped persons.
The receipts from the additional payments referred above shall be assigned exclusively for the modernisation, overhauls and financing the investments connected with sports building and the promotion of sport among children, teenagers and the handicapped.
© European Union