Polish operators request tax break amid Covid-19

Business News

The Employers and Employees of the Bookmakers Companies Association in Poland have appealed to the government to help save thousands of jobs in the sector of the bookmaking industry, threatened due to the current epidemic situation and its consequences for the Polish economy.

Currently, there are approx. 1,500 stationary betting shops in Poland, which employ approx. 5,000 people. Hundreds more are office workers of licensed bookmaking companies.

The industry is facing losses due to an unprecedented situation related to the cancellation of the vast majority of sports events in Poland, Europe and other countries around the world. It is estimated that the current decline in the number of bets concluded amounts to approx. 60% and will continue to grow in the near future.

Since 14 March 2020, the vast majority of companies in the industry, concerned for the state of public health, their employees and customers, have decided to temporarily suspend their operations in all betting shops throughout the country. The closure of stationary betting shops results in a sharp decline in the possibilities for bookmakers to offer their services and, consequently, a drastic reduction in the financial capabilities of individual companies in the industry.

Most entities are currently not generating a profit and have no way of making up for their losses. This, in turn, makes it essential to reduce fixed costs – including, for instance, collective redundancies – and the high risk of bankruptcy of a large number of those entities. It is estimated that the annual turnover generated by the entire licensed sector amounts to PLN 7 billion, of which at least PLN 820 million is transferred to the State Treasury annually in the form of gambling and lottery tax alone.

Due to the problematic situation of the industry, significant fiscal burdens, the threat of rising unemployment and bankruptcy of many business entities – licensed bookmakers appeal for the consideration of the following demands.

Reducing the tax on gambling and lottery from 12% to 10% for the duration of the state of epidemic emergency in the country, but not less than for the period from March to August 2020.

Postponing the payment date of the tax on gambling and lottery to September 2020.

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