An expert panel convened at the European Economic Congress on April 24, 2025, has strongly advocated for significant reform in Poland’s gambling sector, urging the state to abandon its monopoly over online casino operations and intensify efforts to combat illegal gambling websites. The consensus among participants was that Poland’s current model is out of step with the rest of Europe and failing to address the realities of the modern digital market.

Poland’s gambling law currently permits private operators to offer sports betting, but maintains a strict state monopoly over online casino games, which are exclusively provided by state-run entity Totalizator Sportowy.

During the panel session, Zdzislaw Kostrubala, President of the Polish gambling trade association Graj Legalnie, described the monopoly model as an “anachronism” in today’s environment. He highlighted data from the Ministry of Finance indicating the persistent and prolific creation of illegal gambling domains, estimated at around 50,000. Kostrubala argued that attempting to block every illegal site is an impossible task, characterising the state’s current enforcement actions as a never-ending “cat-and-mouse game” with illegal operators.

“We, as an association, are absolutely not against regulation. We are against regulation that does not work,” Kostrubala stated, expressing a clear call for effective reform. He added, “I can’t imagine that we will improve our economic, social and competitive situation while maintaining the current status quo.”

Monopoly Model Out of Step with Market Reality

Piotr Palutkiewicz, Vice President of the Warsaw Enterprise Institute, echoed these sentiments, telling the panel that the existing law and monopoly structure are fundamentally misaligned with the actual market reality. He pointed out that the lack of clear public awareness regarding the legality of online casino offerings often leads even consumers who intend to gamble legally to inadvertently use illegal offshore sites.

The panel noted that this lack of public clarity on legality appears to be a common challenge in some European Union states. A recent report by the Swedish regulator, Spelinspektionen, for instance, found that a significant 72% of Swedish gamblers were unaware which online gambling products held a valid Swedish license versus those operating illegally.

Palutkiewicz stressed that Poland is now one of only a handful of European markets still maintaining a gambling monopoly. “The experience of EU countries shows that almost all countries have already introduced a licensing system,” he stated, indicating a clear trend towards regulated open markets.

Examples of this shift across Europe were highlighted: Finland, for decades known for its state monopoly, published a draft law in July 2024 proposing to open its online betting market to private operators from January 2027, with the law expected to be voted on in parliament by June 2025. This follows Sweden’s successful market liberalisation implemented in 2019. Even Norway, currently the only Nordic country retaining a gambling monopoly, has seen a number of political parties express support for moving towards an open market in their manifestos ahead of the September 2025 general election.

The Cost and Threat of Illegal Sites

The expert panel discussion also focused on the tangible threat posed by grey and black market gambling sites, both to consumers and the state treasury. Data cited during the session suggested that PLN230 billion (approximately $61 billion USD) in funds had been moved to tax havens through illegal gambling activities, resulting in an estimated cost to the state of PLN5.8 billion (approximately $1.5 billion USD) in lost tax revenues.

Olgierd Cieślik, a former chairman of the state monopoly operator Totalizator Sportowy, acknowledged that the fight against the grey market is not progressing with sufficient speed. While Totalizator Sportowy is expected to capture approximately 5% of the legal market in terms of players, Cieślik warned that the turnover generated by the illegal market is rapidly catching up with that of the legal sector.

“Turnover, in terms of revenue of the legal market for last year, is about PLN67 billion. The illegal one is PLN65 billion. And it is growing decisively,” Cieślik stated, underscoring the significant challenge posed by unlicensed operators.

The issue of declining channelisation - the rate at which players remain within the regulated legal market - is a common challenge faced by gambling regulators across Europe. Panelists noted that this difficulty is sometimes exacerbated by the implementation of tighter regulations in legal markets, such as mandatory deposit limits or financial vulnerability checks, which can inadvertently push some players towards less restrictive illegal alternatives.

Wojciech Szpil, another former chairman of Totalizator Sportowy, added that fundamental issues persist regarding the application of gambling law in Poland. He contended that Poland’s regulatory framework has not kept pace with developments in modern international markets.

“The state has not kept up with the law to really get ahead of what the market can offer,” Szpil remarked. He insisted that more robust action is needed to address the “shadow economy” that benefits from offshore licensing frameworks in jurisdictions such as Malta, Gibraltar, or Curaçao, noting that tackling this issue would require proactive measures from entities like the Ministry of Finance or the National Tax Administration.

The panel’s strong call for reform at the European Economic Congress underscores the growing pressure within Poland to re-evaluate its restrictive online casino monopoly in favour of a more open, licensed model, aligning itself with the prevailing regulatory trends observed across the European continent, with the aim of better combating the illegal market and ensuring consumer protection.