Poland is grappling with a growing crisis in online gambling regulation, where a state-imposed monopoly has backfired spectacularly. Despite creating Total Casino as the sole legal operator in 2017, over 40% of the market remains dominated by offshore platforms operating illegally, often from tax havens. As a result, the country lost more than PLN 0.5 billion in gambling tax revenue in 2023 alone.

The online casino market in Poland was regulated surprisingly late and in an entirely ineffective manner. While most EU member states moved toward liberalization, Polish laws, motivated by a desire to combat addiction and curb the gray economy, chose the most radical solution: a full state monopoly. In 2017, Total Casino was established as the country's only legal online casino operator. However, despite the noble intentions, the results were the opposite of what was hoped for. After over five years of Total Casino's operation, more than 40% of the market remains in the hands of illegal operators, often based in tax and regulatory havens like Malta or Curaçao. These platforms operate freely despite clearly violating Polish law, tax regulations, and consumer protection standards. Instead of effective oversight, the state created a fictitious monopoly and lost control over the market it aimed to regulate.

In 2023 alone, Poland lost over PLN 0.5 billion (approximately USD 140 million) in unpaid gambling taxes. Since 2018, the tax gap in this sector has increased by more than 50%. Paradoxically, Total Casino, the government's operator, suffers the most under the current regime, as it must compete against offshore entities unburdened by local rules, taxes, or advertising restrictions. Estimates suggest that as many as 83% of users frequent illegal platforms. Most are unaware they are breaking the law, misled by aggressive online advertisements, fake reviews, and SEO-optimized “how-to” guides that give legitimacy to unlicensed services. These players face real risks, including a lack of guarantees for payment, nonexistent data protection, and unfair or unaccountable games. When fraud does occur, users are often reluctant to report it for fear of tax or criminal liability.

The core issue is not online gambling itself; it's misguided regulation. Rather than serving as an impartial referee and tax collector, the Polish state decided to take an active role in the game by becoming the sole croupier. The monopoly is not just ineffective; it is counterproductive. Total Casino is losing to illegal competition, consumers are unprotected, and the government is losing revenue.

— A smarter solution is available and already proven in Europe — says Piotr Palutkiewicz, Vice-president of Warsaw Enterprise Institute. — Poland should follow most EU countries' path and adopt a licensing-based system for online casinos, similar to the one already applied to sports betting operators. Such a framework would reduce the gray market to around 16%, boost annual tax revenues by over PLN 370 million, and create thousands of new legal jobs. Licensed operators would also be obliged to meet higher standards regarding anti-money laundering compliance, responsible gambling tools, and data protection. Polish players need a legal framework that works — adds Warsaw Enteprise Instutite expert.

Source, Łukasz Wojdyga, 
Director of the Center for Strategic Studies Warsaw Enterprise Institute