Poland: Grey Zone Operations Threaten Licensed Gambling Market

Poland’s sports market that is betting been affected by illegal operations, the 2020 market report released by the country’s sports betting trade association GRAJ Legalnie outlined.

One Third Siphoned by Offshore Operators

The report tracking activities of the legal sports betting businesses identified “grey zone” operators managed to cut a slice off of the licensed market in excess of 35% for the ZL7.2 billion (€1.6 billion) created by the 19 certified retail and online sportsbooks.

GRAJ noted 2020 saw the market that is legal for ZL800 million (€170 million) in tax duties to Poland’s Treasury despite the material impact of the coronavirus outbreak which halted international sport.

“After A beginning that is promising the next quarter brought the lockdown of international sport. Many versatile businesses with a portfolio that is diversified well-developed produce and technology were able to make up for the losses incurred during those months.”

Katarzyna Mikołajczyk, President, GRAJ

Growth for STS, Decline for Fortuna

Poland’s market leader, STS, managed an increment increase of its market share to 46%, compared to the 45% the operator held in 2019, posting revenues to the amount of ZL3.3 billion (€733 million), and Katarzyna Mikołajczyk praised the Mateusz Juroszek-owned gambling group for overcoming a year that is difficult the decrease in profits it suffered into the 2nd quarter.

“The pandemic has additionally impacted its regional shops that are betting most of which have been closed during the lockdown. After reopening, traffic at many of these locations did not return to levels that are pre-pandemic and some clients relocated to the web channel.”

Katarzyna Mikołajczyk, President, GRAJ

The development attained by the marketplace frontrunner STS appears better still in the back ground for the outcome published by its competitor that is biggest, Fortuna Entertainment, which reported 3% decline in market share, to 28%, having seen its revenues dip 10% to ZL2 billion (€444 million) from the ZL2.2 billion ((€488 million) the company registered in 2019.

As STS and Fortuna held an market that is aggregate of 74%, the residual 17 operators had to scramble for development inside the single-digit area, GRAJ report outlined. Included in this, INTRALOT’s Totolotek had been forced to shut its whole estate that is retail to closures imposed on retail gambling establishments.

The industry’s trade body also highlighted difficulties relating to the calculation of the market that is true for the gambling industry in the united kingdom as a result of the existence of lots of unlawful online operators which constantly target Polish residents and accounted for longer than a third for the licensed market.

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