Poland sees new products slow gambling revenue decline
New figures released by the Polish Ministry of Finance reveal that while the country has seen gambling revenue decline for the year to date, newly regulated products helped mitigate falls in online betting and land-based gaming.
Gross gaming yield (GGY) projections provided by H2 Gambling Capital, reveal the total for the year to 11 June is expected to fall 9.5% from 2019’s figures. This, the Ministry pointed out, is significantly lower than the 19.6% decline projected across all European Union markets.
Poland’s lower projected decline was due to the development of newly regulated verticals, such as online casinos and land-based arcades. Online casino revenue grew 96.7% for the year to 11 June, aided by growth from Totalizator Sportowy’s Total Casino site.
Total Casino launched in December 2018, as Poland’s only legal online casino site, and saw new player sign-ups grow significantly during the year, according to the Ministry. This in turn took revenue from offshore sites, which saw casino revenue fall 25.0% for the period.
Total online revenue was up 0.3%, with a 14.2% decline in sports betting - during a period in which sporting events were suspended during the novel coronavirus (Covid-19) crisis - offset by growth in online casino and online lotteries (up 26.2%).
For the land-based sector, revenue across all verticals was down 13.1%, largely down to a 27.3% drop in casino yield, and a 25.4% decline for betting. Number games such as lotteries saw GGY fall 8.6%.
However, gaming arcades saw their contribution rise 41.4% over the period. Legalised in July 2018 and again operated by Totalizator Sportowy, there were 239 in operation as of 31 March 2020, with 36 new venues opened in the first quarter.
For Poland’s offshore market, however, revenue was down 25.8% for the year to 11 June. As mentioned above, this was due in part to the 25.0% decline in offshore casino, coupled with a 27.0% drop in offshore betting yield.
The figures come after trade body the Association of Employers and Employees of Bookmakers called for the Ministry to reduce the 12% turnover tax levied on sports betting operators to 10% to help the industry mitigate the loss of revenue caused by Covid-19.