Polish Bookmakers Struggle to Compete With Their Offshore Counterparts

Poland’s regulated gambling market faces a growing challenge: licensed domestic bookmakers are struggling to compete with offshore operators that target Polish players from abroad. Despite strict laws and enforcement efforts, many bettors are choosing international platforms instead of locally regulated ones — and the reasons go well beyond simple preference.

One of the biggest structural issues Polish bookmakers face is the tax and regulatory framework they operate under. Licensed operators are required to pay a 12 % tax on turnover — the total amount wagered — a rate that industry analysts say puts them at a disadvantage compared with offshore competitors who are not subject to such punitive charges. This effectively means domestic bookmakers must offer less attractive odds and fewer bonuses to cover their tax burden, making them less appealing to value-conscious bettors.

In addition to high taxes, the licensing process in Poland is onerous and costly. Prospective operators must establish a company locally, translate documentation into Polish by sworn translators, and undergo technical audits — hurdles that reduce competitive flexibility and increase operational costs.

All these factors have contributed to the continued attractiveness of unlicensed offshore gambling platforms. Analyses suggest that while the legal market has grown, the offshore or “grey” market remains significant. Estimates indicate that tens of billions of złoty have flowed through illegal platforms over recent years, almost matching the size of the regulated sector when measured in total wagered amounts.

Even though regulators block access to unlicensed domains and restrict payment processing, tech-savvy players continue to find ways to reach these offshore sites. This ongoing activity dilutes the market share of licensed operators and erodes the government’s ability to collect tax revenue from gambling activity.

Many bettors gravitate to offshore operators precisely because they offer higher odds and larger bonuses — benefits that licensed Polish bookmakers struggle to match due to regulatory constraints. Offshore sites often run on licenses from jurisdictions like Malta or Curaçao, where lower taxes and lighter regulatory burdens allow them to absorb promotional costs more easily.

Furthermore, offshore casinos frequently offer a wider range of gambling products — such as online casino games, poker, and live dealer options — that are either restricted or tightly controlled under Polish law, particularly outside sports betting.

As a result, Polish bookmakers have not just seen stagnant growth — some have left the market altogether. Several legal operators have closed or scaled down operations due to competitive pressures and the difficulty of meeting regulatory and tax demands while remaining profitable. The exit of these players has left remaining brands with smaller portfolios and less competitive positioning.

The combination of high domestic taxes, strict regulatory requirements, and the resilience of offshore operators means that licensed Polish bookmakers are caught in a difficult competitive position. While legal alternatives continue to exist and even grow, a large portion of the gambling activity in Poland still flows through unregulated channels where odds are better and restrictions are fewer.