UN Global Compact Network Poland proposes the creation of an entity to control the gambling industry, along the lines of the Polish Financial Supervisory Authority (KNF) – the Gambling Supervisory Authority.
Expert recommendations that will help increase budget revenues and eliminate companies operating illegally on the Polish market include: change in the method of taxation. –Corruption and the gray zone are among the most serious obstacles to development: they hinder economic growth, increase the cost of doing business, distort fair competition and create reputational and legal risks for legal operators. They also disrupt domestic and foreign investments and the transfer of technologies and new solutions that accelerate sustainable development, said Kamil Wyszkowski, executive director of the UN GCNP, quoted in the press release.
According to independent market research, the share of the gray zone in the Polish gambling industry is up to 35%. market. In its annual calculations, the consulting firm EY estimated the gray zone in the gambling industry at almost 28 billion zlotys. The Ministry of Finance could have suffered losses of almost PLN 800 million from the unpaid gambling tax alone. Most of this unfair practice concerns bets organized via the Internet, as indicated in the material.
“As the experience from other sectors shows, the key to combating the gray zone in the gambling industry is the cooperation of legal market representatives with the legislature, government and law enforcement agencies. Continuous market monitoring and exchange of information between these entities is the most effective. way to combat organized crime in the gambling industry. However, representatives of legal, recognized bookmakers and experts have prepared many more proven ideas on how to effectively combat the gray zone,” we read further.
“In Poland, almost 1.2 million people actively gamble illegally every month. We have about 1.5 million players in the legal zone. This shows what a big problem we are facing. The gray zone in our sector is still a major challenge that limits the development of legal businesses and limits revenues for the state budget. We must look to the future and take specific actions that will end the gray zone, increase budget revenues, help customers migrate from the gray zone to legal businesses and increase player protection,” said Adam Lamentowicz, Chairman of the Polish Chamber of Commerce in the Entertainment and Book Industry.
Key recommendations from the UNGC report:
– the introduction of the GGR tax (Gross Gaming Revenue – income minus paid winnings) is the most effective instrument in the fight against the gray zone,
– it is necessary to create a special entity to control the gambling industry, along the lines of the Polish Financial Supervisory Authority – the Gambling Supervisory Commission,
– rebuilding the system for prosecuting gambling crimes is a necessary step that will improve the effectiveness of imposing penalties against dishonest entities operating in the sector.
“The authors of the report identify the GGR tax as the best tool to combat the gray zone in the gambling industry in Poland. The amount of the recommended tax is under discussion and joint work between the Ministry of Finance and legal gambling operators is proposed to develop a common position that will contribute to limiting the gray zone and thus improve the situation of the sector . This type of taxation of gambling operators is widely used around the world and rates vary from tens to several tens of percent. This gives operators more flexibility and more options to manage their business more effectively. It also significantly increases budget revenues, which is the dominant solution in EU law,” the press release said.
“The authors of the report emphasize the need to create a special entity, along the lines of the Polish Financial Supervisory Authority, whose main task will be to monitor the gambling industry. Experts justify this recommendation with the increasing scale of the gambling industry’s activities and the increasing complexity of the problems faced by public authorities – not only in the field of taxation, but also in the areas of health care, public security and combating of organized crime. Similar committees are already operating successfully, including: in Denmark, Spain, the Netherlands, Norway and Great Britain,” we read further.
The scope of the indigenous committee’s authority could include activities such as:
– supervision of entities that offer games of chance, both online and stationary
– granting licenses and permits
– maintaining the proposed central list of trusted gambling market entities, stated in the information.
Experts indicate that it will also be necessary to rebuild the system for prosecuting gambling crimes. According to National Tax Administration (KAS) data cited in the announcement, less than PLN 2 million has been collected from the fines imposed in 2022 amounting to PLN 640 million. A year earlier, the situation was similar: of the PLN 462 million in fines imposed, just over PLN 1 million was recovered.
“Often this is the result of recording activities by the so-called pillars, that is, persons or entities that actually have no assets or do not exist or disappear at the time the inspection is initiated. The situation could be improved by introducing a list of trusted entities in the gambling market. The lack of inevitability of punishment only further emboldens dishonest entities and somehow explains the extent of their activities in the industry,” the report concluded.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
