Polish Offshore Online Gambling Market Shrinks to 25%
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The offshore gambling market shrunk to 25% of the total in 2020, according to new research by H2 Gambling Capital.
Legalization of online gambling in Poland has shrunk the share of the offshore betting and gaming market in the country. Offshore gambling accounted for 80% of gambling market as of 2016, but this has fallen to 25% as a result of amendments to the gambling legislation. Some 120 websites are targeting Polish players, and the value of this market is estimated to be $165 million. UN Global Compact representative Kamil Wyszkowski is fighting for more liberal rules to allow regulated operators to run their businesses more freely.
Henwood advises the government to focus on optimizing the conditions for the regulated market rather than weighing legal businesses with unnecessary regulation. The current market potential of the Polish online gambling market is estimated at zł4.1 billion gross ($1.08 billion) based on current regulation, but the market could reach zx5.8 billion ($ 1.52 billion), and the ensuing tax, zl2.3 billion $600 million.
Ten foreign entities control 80% of the illegal online gambling market in Poland. They are based in Malta, Gibraltar and Curacao. The ban on advertisement is hurtful to legal operators in the country. Regulated operators can't flood the market with their ads. The government is doing well with blocking unregulated operators and taxation. However, a lack of flexibility in advertising by regulated entities has redirected customers to the grey market.
