Countries all over the world are trying to regulate the online gambling industry in order to provide legal frameworks for operations, protect the consumers and ensure that revenues are taxed properly so that economic gains are generated. In Poland, the regulatory framework is becoming tighter, and the tax system is often considered the main source of many of the problems that the industry is currently facing.
Fortunately, despite the overall strict regulatory framework, crypto gambling in Poland remains a segment that is profitable, ‘welcoming,’ and free from any tight legal implications which could significantly hamper its potential for growth. However, as we will see later on in this discussion, the regulatory framework of crypto gambling is still far from being comprehensive.
The tight regulatory framework and taxation in Poland
The regulatory framework in the online gambling industry in Poland renders some critical analysis, particularly as it is often blamed for the inability of licensed online gambling sites and online casinos to turn into profitable business operations.
With considerably tight taxation on gambling turnover (just as in the US), Polish gambling platforms are less competitive than other -illegal in most cases – online establishments, and this explains the fact that roughly 20% of Poles turn to these sites in order to bet, as the prices offered tend to be more attractive. But they run the risk of being accused of illegal gambling.
Online gambling is subject to laws concerning business and corporate conduct, and as such, there is a generally strict process of setting up operations, including obtaining a license for business and a number of other permits and legal aspects necessary for business functions.
The cryptocurrency currency gambling regulatory framework
However, cryptocurrency gambling in Poland has some particular characteristics which set it aside from general online gambling. While you need to have a license to operate an online gambling platform, you don’t need to have a license for crypto transactions. In fact, you need to have a registration, which acts as a means of ensuring that there is transparency and there is no laundering of illegal money.
Poland initially incorporated cryptocurrency transactions into the framework of AML Law, but the amendment foresaw that there should be a separate regulatory framework for cryptos. Notably, cryptocurrencies in Poland are digital currencies that reflect digital expressions of value.
Now, crypto gambling sites in Poland need to get registered (specifically, this has been in effect since November 2021), and this is done by undergoing a procedure whereby they are declared as cryptocurrency enterprises. The legal framework regarding cryptocurrency enterprises has to do with ensuring that there are no illegalities concerning crypto transactions!
The thing is that Polish law does not provide a specific supervisory body or institution for cryptocurrency control and supervision. In fact, there are no formal authorities to supervise the activities, but informally there can be supervision from the financial authorities on everything, including crypto transactions, crypto assets, and crypto payments.
For crypto gambling sites, this means that they are particularly subject to the laws concerning online gambling, but there is a vague, inconsistent and very broadly perceived relevant regulatory framework when it comes to cryptocurrency payments. In short, due to the fact that the corresponding Polish law on cryptocurrencies and the overall crypto market is not comprehensive, there is also a blurred area when cryptocurrencies meet online gambling.
