organise and conduct internet mutual bets gaming. Currently, 16 licensed bookmakers operate in Poland and four further applicants are going through the approval process.
Since Betclic obtained its license, increasingly more offshore operators have been queuing up. It is worth emphasising that, apart from the 12 per cent gambling tax they will have to pay, offshore operators will not be subject to income tax in Poland giving them a certain competitive advantage against bookmakers registered in Poland. Even without the long-awaited change of the taxation system, it is expected that new license applications will inevitably be filed with the Minister of Finance and that the total number of issued licenses will further increase.
Contrary to popular belief, it is possible for an offshore entity to obtain a license in Poland, as was proven by Betclic when it obtained the license in September 2018. All applications for granting a license are examined by the Minister of Finance. Te relevant proceedings may last up to six months. However, the time limit is subject to extensions, often involving several additional
months being added to the application process. Te application itself shall be accompanied by official company documentation (e.g., articles of association and financial statements), and information on the applicant’s business (e.g., website regulations, technical documentation of the website, or the consent of the sports competition organisers).
Te license shall be granted for a period of six years, which may be subject to a one-off extension for the following six years. Te fee for granting the license is approximately €100,000 for each website used for the organisation of mutual bets. Te applicant shall also be required to provide collateral of €115,000 in cash or in the form of a bank guarantee.
REPRESENTATIVE One of the key conditions for allowing offshore
entities to provide gambling services in Poland is the obligation to appoint a representative or, alternatively, conduct their activity in the form of a branch office. Due to serious tax consequences of establishing a branch office, the appointment of a representative seems to be
advantageous for foreign entities. Te representative may be either a natural or a legal person conducting business activities within the territory of Poland. Te compulsory element of a license application includes documentation proving that the representative meets a number of formal requirements laid down in the Gambling Act. In practice, the role of a representative (after a license is granted) is to represent a foreign entity before the Regulator and authorities competent in the field of gambling games and gambling tax. In addition, the representative keeps relevant documentation in the territory of Poland, including records concerning the activities of the foreign entity.
According to market reports, the Polish online gambling market is estimated at EUR 1.2-1.7 billion a year. Tis market is currently divided between 18 locally licensed operators and one offshore entity. Considering the size of the market, there is certainly enough room for plenty more market entrants, particularly those providing a comprehensive and well-presented offer.
NEWSWIRE / INTERACTIVE / MARKET DATA P61
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