G3 June 2018
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Reports POLAND MARKET P42 NEWSWIRE / INTERACTIVE / MARKET DATA Poland Polishing its new gaming crown Poland has quietly and modestly grown into one of Europe’s biggest gambling success stories. After changes in legislation a few years ago the Polish betting market has grown significantly with operator turnover doubling over the last three years. Poland has had a turbulent past. It was dealt a government’s loose fiscal policy and a harsh hand and historically has bounced commitment to rein in spending. between periods of oppression and independence. It was destined to be the One of the most important aspects of the Polish economic underachiever. But it proved the economy is the large domestic consumer market. doubters wrong. This is currently accountable for 61 per cent of its GDP and is expected to be one of the main It is a robust nation made up of sturdy stock with drivers of the economy for the mid term. a proud cultural heritage and since 1995 has become the fastest growing large economy in the Meanwhile the government has also recently world and is a European success story in many introduced several policies to boost spending and aspects. From once having virtually no trade economic growth further. with the West and being cut off from the world, Poland has flourished over the last few decades. The Family 500+ (Rodzina 500+) programme was As the Berlin wall fell a wave of Western media introduced in 2016 to boost birth rates and and influences flooded into the country and it reduce child poverty. It gave parents a tax free began to boom and expand. Today Poland is the benefit of PLN500 (€130) per month for the sixth largest economy in the EU with a total GDP second and consecutive child (until they reach of €524bn. 18) and for their first child if on a low income. This was a huge boost for families and the This is mostly down to its large domestic market, programme was amended last summer and it early economic reforms, fast institution building, now applies to all families with any number of a boom in education and an open and children regardless of income. transparent privatisation policy. This is part of a welfare package which also saw No mean feat for a country without any real a cut in the retirement age (65 men and 60 natural resources. During the global recession women) and a one-off bonus pension payment. Poland was the only country in the EU to avoid a Other changes saw the minimum wage in Poland recession, which was in part due to the also increased to PLN2,250 (around €500) per Western video game publishers have been investing in Poland and are outsourcing their projects in a country with lower labour costs. There are around 300 game developing companies operating in Poland at the moment. The internal market is big. As of 2018 video game sales in Poland were worth around €485m (about 24th in the world). NEWSWIRE / INTERACTIVE / MARKET DATA P43 Reports POLAND MARKET People under 26 years of age are now exempt from income tax to encourage them to remain in Poland, plus there are lower taxes planned for the general population. The income tax exemption came into effect mid 2019 and means around two million workers with an annual income of less than PLN85,528 (€22,547) don’t have to pay the 18 per cent income tax. month whilst the minimum hourly rate of those by CD Projekt Red, developer of the PLN14.70 (€3.30) was introduced. Witcher series, Techland (Dead Island series), Flying Wild Hog (Shadow Warrior) and CI In addition, people under 26 years of age are Games (Sniper Ghost Warrior). now exempt from income tax to encourage them to remain in Poland, plus there are lower taxes The video games sector has exploded mostly due planned for the general population. The income to cheap costs and publishing. A country which tax exemption came into effect mid 2019 and once had no access to Western video games has means around two million young workers with been absorbing this technology and leisure providing schemes and grants to help an annual income of less than PLN85,528 activity for the last 30 years. There is a huge developers of all sizes plus initiatives to support (€22,547) don’t have to pay the 18 per cent demand in Poland for video games stemming start ups and contests for student projects. income tax. It is hoped this will help increase back to youngsters playing on pirate games in sectors such as retail, real estate and leisure the early 80s. But despite the positives, Poland is still a far cry activities. And it seems to be working. from an economic utopia. Politically there are Western publishers have been investing in issues. Regardless of the favourable economic The construction and real estate sectors are Poland and are outsourcing their projects in a policies the country has a rather nationalist and booming and international companies such as country with lower labour costs. There are xenophobic party in power. IBM, Citi Group and Credit Swiss are relocating around 300 game developing companies part of their operations to Poland. operating in Poland at the moment. The internal POLITICS AND TOURISM market is big. As of 2018 video game sales in Poland has seen 17 different governments since The country has also found new sectors to focus Poland were worth around €485m (about 24th 1990 and the most recent general election in on and one of the fastest growing markets is in the world). October 2019 saw the Law and Justice Party video game development. Poland now boasts (PiS) reinstated. The PiS has governed olandP several critically acclaimed games including The government has also backed the industry since 2015, when after eight years in opposition, P44 NEWSWIRE / INTERACTIVE / MARKET DATA it became the first party to win an absolute twin brother Lech who was later elected safeguarding Poland against migrants and majority in a Polish election since the fall of President in 2005. Lech later died five years later refugees from the Middle East and Africa as well communism in 1989. Andrzej Duda took over as in a plane crash in Russia. as from LGBT people. Despite this, it remains the President in 2015 replacing Bronislaw most popular party in Poland and the country Komorowski of the centrist Civic Platform. The Although Kaczynski served as Prime Minister continues to develop. Civic Platform (PO) was co-founded by Donald between 2006 and 2007, he now governs from Tusk in 2001 and was in power from 2007 until behind the scenes but remains one of Poland’s Meanwhile tourism figures are increasing 2015. least trusted politicians. In 2015, he made Beata rapidly. Safety appears to be a key reason. Szydlo Prime Minister and she became the face Poland is viewed as a safe, friendly and Over the last few years the party has moved the of many of Poland’s generous welfare policies. hospitable country whilst the country’s cultural country into an illiberal direction and alarm Kaczynski later replaced her with former and natural heritage is a huge draw. bells have been ringing in Brussels over its finance minister Mateusz Morawiecki. efforts to control the judiciary. Total tourists in 2018 amounted to 19.6 million The conservative PiS party have promoted strict (18.2 million in 2017) with an expenditure of The PiS today is headed by Chairman Jaroslaw Christian values, are homophobic and are PLN34.5bn and an average expenditure of Kaczynski who co-founded PiS in 2001 with his considered a right-wing party intend on PLN1,759 (€430) per person. There are over NEWSWIRE / INTERACTIVE / MARKET DATA P45 11,000 tourist accommodation establishments in Between 2010 and 2014 one in 10 people from carried out by the National Revenue Poland. Poland emigrated to Western Europe. But the Administration (NRA). Ukrainians and Belarusians have stepped into The number of tourists during the first five their shoes and to date the number of The Gambling Act of 2009 governs the Polish months of 2019 (Jan to May) reached 12.8m immigrants has reached two million mark. gambling market which defines several types of (11.8m for the same period in 2018) of which gambling games permitted and grouped in four 7.7m were domestic guests and 2.4m were THE GAMBLING MARKET categories: foreign guests. The Polish gambling law has been in existence since 1992 and although it has undergone Games of chance – an umbrella term to include The majority of visitors are coming from several amendments the most significant games conducted via the internet, number Germany (6.7m), Ukraine (2m), from Russia and happened in 2017 which changed the market games, cylindrical games (roulette etc), dice the UK. There is also a marked increase in quite considerably. games, cash bingo, telebingo, cash lotteries etc. visitors from China, Israel and South Korea. The amendments brought in several changes Betting – totalisator and bookmaking So does Poland’s growth look set to continue? At including the opening of state-run gambling the moment it is heading to top of the class. It arcades; the launch of state-run online casinos Card games – blackjack, poker, baccarat etc. doubled its GDP over the last two decades and it games, a tightening of the online market to stop is now predicted that the Polish economy will unlicensed bookmakers; the introduction of Slot machines. the join the G-20 list of those largest in the Eurojackpot and online lottery whilst poker world by 2022. tournaments were also permitted.