The smart money goes abroad
With the 2006 Winter Olympics in full swing and the football World Cup on the horizon, it should be a fantastic year for bookmakers. Although a relatively new leisure activity in Poland, betting is becoming increasingly popular. International internet bookmakers are launching Polish language sites, and on February 7 online betting firm Gamebookers launched services for Polish gamblers.
Aleksander Karaszewski, from the internet portal Bukmacherzy.com, says that more complicated wagers are proving popular in Poland, especially in football, with money often laid on what minute goals are scored in, how many corners will be in a game, or what players will score first.
A losing battle
Traditional bookmakers are finding it difficult to deal with the threat of their online counterparts. Apart from the obvious comfort of betting at home, internet bookmakers have a number of advantages in comparison to the traditional shops. They are available 24/7, they offer betting during a game or competition, they provide helpful statistics and the better sites stream results and games live. But perhaps the most important factor is taxation. "Clients of internet bookmakers do not pay the 10-percent tax on their wins," says Inga Niewiadomska, a spokesperson for Sportingbet.com in Poland. This is because many online betting houses are not registered in Poland. Polish law forbids betting entities registered in the country to offer bookmaking services via the internet.
The traditional betting companies are up in arms. "We are paying taxes in Poland, both corporate taxes and the 10-percent tax on supporting sports, we are employing thousands of people, while the state gets nothing from the internet bookmakers," says the managing director of Profesjonał, Karel Novosad. He calculates the state's losses at hundreds of millions of złoty annually.
Novosad also complains that the law forbids him to advertise his services or sponsor sport teams, something that bookmakers in other European countries often do.
Maintaining control
Anna Adamkiewicz from the Ministry of Finance says that there are rigorous conditions for those wanting to establish and run a 'bookies'. The Finance Ministry maintains control over the companies, their headquarters and bookmaking offices. The law stipulates that bets can only be placed in defined offices, betting companies are not allowed to advertise themselves, are not allowed to offer their services to minors, and should maintain financial records and records of wins. "Allowing betting on the internet would make effective control impossible," Adamkiewicz claims.
Novosad complains that bookmakers in Poland are treated just like gambling spots and casinos. Karaszewski agrees, adding that a thorough knowledge of sports, current form and numerous other factors are needed when betting on a result. "The chances of winning in sports betting are much larger than in the lottery or roulette," he says.
Novosad says that he tried in vain to get the government to change its policy. He claims the government's actions are helping firms outside of Poland, rather than those that create jobs and pay taxes here. "We should have some kind of discussion with the Finance Ministry on how to prevent Polish capital from going abroad," he adds.
