In the age of globalization and easy access to foreign online gambling platforms, more and more people are tempted to play at internet casinos operating outside Poland. However, before you take this step, it is crucial to understand the legal and tax consequences it may entail.
Is Playing at a Foreign Online Casino Legal?
Under Polish law (Article 29a(2) of the Act of November 19, 2009, on Gambling, consolidated text: Journal of Laws of 2025, item 595), participation in online gambling organized by entities other than the state monopoly (e.g., Totalizator Sportowy) is generally illegal. Internet providers in Poland are required to block access to unauthorized gambling sites.
Additionally, Article 107 §2 of the Fiscal Penal Code imposes a fine for participating in foreign online gambling, regardless of whether the player makes any profit.
According to Article 30 §5 of the Fiscal Penal Code, any financial gains obtained from illegal gambling are subject to confiscation by the State Treasury, even after being withdrawn or circulated in the economy.
It is also worth noting that under Article 2(1)(4) of the Personal Income Tax Act (PIT Act), winnings from such illegal activities are not subject to income tax because they originate from an unenforceable contract. However, the lack of a tax obligation does not legitimize the winnings nor exempt the player from criminal liability.
What If You Play Abroad?
The player’s physical location during the game is key. If a taxpayer is physically outside Poland—for instance, while on holiday in an EU country—and plays at a legally operating online casino there, they are not subject to Poland’s gambling restrictions.
In such cases, it is essential to have evidence of staying abroad, such as:
- Airline tickets,
- Hotel bookings or invoices,
- Fuel or shopping receipts abroad,
- Card transaction confirmations.
Well-documented proof of being outside Poland during play and winnings can provide an effective defense against potential penalties.
When Are Winnings From Foreign Casinos Tax-Free?
Under Article 21(1)(6) of the PIT Act, winnings from licensed land-based casinos, bingo halls, and prize draws organized in EU or EEA countries are exempt from income tax.
Important: This exemption does not apply to online casinos, even if they are legal in the country of operation, when the player is gaming from Poland. However, if the player is physically in that country (e.g., in France playing at a licensed French online casino), they can benefit from the tax exemption—provided the situation is properly documented.
Documenting Your Winnings
To avoid disputes with tax authorities, a taxpayer should have:
- An official certificate of winnings issued by the casino (the only valid proof),
- Documents confirming the casino’s legality,
- Evidence of being abroad during gameplay.
A Supreme Administrative Court ruling (May 15, 2008, case II FSK 393/07) confirms that only a formal certificate from the casino is sufficient for tax purposes.
If such documentation is missing, tax authorities may treat the winnings as income from undisclosed sources and impose a punitive tax rate of 75%, alongside possible confiscation of winnings.
Illegal Casinos – The Risks
Participating in illegal gambling platforms targeting the Polish market is significantly riskier than playing at licensed casinos abroad. Although winnings from illegal casinos are not subject to PIT (since the contract is legally invalid), players face criminal liability and risk the confiscation of funds.
In short, while there is no tax obligation, the player can still lose all winnings and face penalties.
Conclusion
Playing at foreign online casinos from Poland is illegal and may result in fines and confiscation of winnings—even though such income is not taxed. The paradox of Polish law is that players do not pay PIT on illegal winnings, yet they can still lose all their funds and face criminal charges. The only exception is when you play while physically abroad at a legal casino—in which case, winnings may be tax-exempt, provided you have proper documentation.
Author: Robert Nogacki, Managing Partner, Attorney-at-Law at Skarbiec Legal Office, specializing in legal, tax, and strategic advisory services for businesses.
Source: CEO.com.pl
