Poland backs working group to combat EU exposure to illegal gambling

Poland seeks for EU member states to “harmonise and deepen” collaborative efforts to combat illegal online gambling, which is reported to cost Eurozone nations an estimated €7.2bn in lost tax revenues.

Since 1 January, Poland has held the Presidency of the Council of the European Union, setting the agenda for the first half of 2025 for the bloc and its economic union, in which it has chosen to raise the EU’s exposure to online gambling threats via the black market.

The EU’s growing exposure to illegal online gambling is viewed as an integrity and economic threat, with member states limited in binding solutions to arrest and prosecute black-market actors.

Poland calls on member states to view illegal online gambling as an EU-wide threat, which requires harmonised regulations and enforcement practices to combat illegal entities targeting EU consumers with no binding restrictions.

Poland has proposed the creation of a dedicated working group under the European Commission to tackle illegal gambling more effectively.

The group would involve national experts from member states to work collaboratively on gambling regulations and enforcement practices. The proposal has gained support from organisations like the European Betting and Gaming Association (EGBA), the EU-wide trade body that has long advocated for cross-border cooperation to combat illegal gambling activities.

However, the EU faces significant obstacles in developing harmonised laws and policies related to combating illegal online gambling. Previous judgements made by the European Court of Justice (ECJ) have determined that gambling laws are principally subject to national regulatory frameworks. As such, EU governments have the autonomy to determine or design gambling laws outside of the rules applied to the Single Market.

EU challenge displayed by Poland’s fragmented laws 

Fragmented laws are evident in Poland, which in 2017 overhauled its Gambling Law to apply a 12% turnover tax on online gambling wagers and required operators to have a domiciled business.

Furthermore, Poland restricted online casino operations to be solely managed by the state-owned Totalizator Sportowy, a market condition challenged by leading Polish sportsbook STS Group, who deem the rule as illegitimate.

The Polish initiative is expected to extend beyond gambling to address other online threats. According to Bloomberg reports, it may incorporate AI-powered technologies to identify and combat illegal websites more effectively. This broader scope reflects the urgency of addressing digital threats across multiple sectors.

EU authorities unwilling to recognise threats

Despite robust regulatory frameworks in countries like Germany, Sweden, the Netherlands, and Belgium, black-market gambling remains a persistent issue.

Germany, in particular, has faced disputes between trade groups and its national regulator over the extent of illegal gambling, with the interstate gambling authority, the GGL, refusing to acknowledge a 50% exposure to black-market activities. Observers argue that the regulator has underestimated the problem, further emphasising the need for a harmonised EU-wide approach