How to obtain a license to operate mutual betting?
Activities related to mutual betting can be conducted either at betting offices or online. The condition is obtaining the appropriate permit. The formal requirements for obtaining such a permit are set out in the Act of 19 November 2009 on gambling.
Entities applying for a permit to organize mutual betting must take the form of a joint-stock company or a limited liability company and have their registered office on the territory of the Republic of Poland. Shares or interests in such companies may be held or acquired by: 1) a legal entity or an entity without legal personality with its registered office in a member state of the European Union or a member state of the European Free Trade Association (EFTA) – parties to the European Economic Area Agreement; 2) a natural person who is a citizen of a member state of the European Union or a member state of EFTA – parties to the European Economic Area Agreement.
In such companies, there cannot be any privileged shares or interests, and supervisory boards must be appointed. In a joint-stock company, only registered shares may be issued. Foreign joint-stock companies or limited liability companies, or entities operating under the rules applicable to these companies, may also apply for a permit if they have their registered office in another EU or EFTA member state and are already conducting gambling activities. They should operate either as a branch or through a representative.
The representative is appointed by a written agreement. The representative may be a natural person, a legal entity, or an organizational unit without legal personality conducting business in Poland. A natural person should reside in Poland and be able to communicate in Polish to perform their duties. A legal entity or an entity without legal personality must have its registered office in Poland, with at least one board member capable of communicating in Polish as required.
The duties of the representative include: 1) acting on behalf of and for the company before the competent authorities in matters related to gambling; 2) holding power of attorney to conclude civil law contracts on behalf of and for the company; 3) representing the company before authorities responsible for gambling taxes; 4) storing documentation in Polish on the territory of Poland.
The minimum share capital of a company applying for a permit to organize mutual betting must be at least PLN 2 million.
Conducting mutual betting is conditional upon: 1) the absence of justified reservations regarding the company or its shareholders holding more than 10% of share capital, or members of the management board, supervisory board, audit committee, or proxies concerning state security, public order, economic interests, or compliance with anti-money laundering and counter-terrorism financing regulations; 2) members of management, supervisory board, or audit committee holding Polish or EU/EFTA/OECD citizenship; 3) no ongoing proceedings in the courts of an EU or EFTA member state against these persons for money laundering or terrorist financing crimes; 4) the company not having had a permit revoked within 6 years before the application due to gross violation of permit conditions, regulations, or other legal requirements; 5) shareholders and members of governing bodies not having held significant stakes in companies with revoked permits within the last 6 years.
All aforementioned entities must have an impeccable reputation, particularly having no convictions for intentional crimes or fiscal offenses in any EU member state. The same requirements apply to representatives of foreign companies applying for a permit.
Applicants must document: 1) the legality of the sources of capital; 2) no outstanding taxes, customs duties, or social and health insurance contributions; 3) compliance with anti-money laundering, counter-terrorism financing, and accounting regulations.
Applications must include, among others: notarized copies of company statutes or agreements, registry numbers, identification of shares or interests, legal and financial status of shareholders and management, consent for betting office premises, planned start date, types and number of bets, website details for online operations, age verification procedures, security of participation evidence, estimated employment, organization of operations, economic and financial feasibility studies, proposed game regulations, proposed security deposits, sports competition organizers’ consent to use results, proof of legal capital origin, certificates of no tax or social insurance arrears, declarations on absence of criminal proceedings, certificates confirming no convictions for intentional crimes, and documents confirming compliance with AML and counter-terrorism financing regulations. For foreign companies, proof of prior gambling operations in another EU/EFTA country is required.
Permits are issued by the Minister of Finance within six months of application submission, valid for six years, with the possibility of one-time renewal for another six years. Each permit specifies the number of betting offices or websites authorized.
The permit details: company name, approved shareholding structure, management and supervisory board members, location and type of betting activities, including online platforms if applicable, age verification rules, and security requirements. Approved game regulations are attached to the permit. The start date of operations may be extended once, for up to six months. Failure to commence activities within the specified period results in full or partial expiration of the permit.
Documents submitted must be originals or notarized/certified copies. Foreign-language documents require certified Polish translations.
The fee for issuing or extending a permit is 2000% of the base amount, with additional fees for each betting office, online operations, or website used. Base amount changes annually and is published by the President of the Central Statistical Office; in 2022, it equals PLN 5,774.13. Fees also apply for permit modifications.
The Minister of Finance verifies the formal requirements of submitted documentation. If deficiencies are identified, the applicant has seven days to correct them, failing which the application will not be considered. Substantive verification follows for complete applications, and the Minister may request clarifications or corrections if necessary.
Appeals against refusal to grant a permit may be filed with the Minister of Finance within 14 days of notification. Complaints regarding applications left unconsidered are due within 7 days of notification.