Version: 15012003
Editor: Franka Pals
Publisher: Novamedia
Disclaimer: Novamedia disclaims all liability for information provided within the ”Novamedia European Gaming and Lottery Files”.The information is supplied by independent journalistic sources. No parts of these files may be reproduced in any form by print, photo print, microfilm or otherwise, or re-distributed electronically in any form without written permission from the publisher.
The Republic of Poland is circled by the Baltic Sea in the North and – clockwise – by Russia (Kaliningrad Oblast), Lithuania, Belarus, Ukraine, Slovakia, Czech Republic and Germany. Poland has a long history of being overran by other nations, such as Russia, Prussia, Austria and in the 20th century by Germany and the Soviet Union.
In 1989 when Poland was still under strong 'influence' of the Soviet Union, the Polish Government had, due to the severe economical crises, to accept the establishment of unions. And under the devoted leadership of Lech Walesa all different unions formed one strong Union: Solidarity. Walesa, nationally and internationally known by his performances at the Gdanks' shipyards, his famous moustache and his s–formed smoking pipe, became a Polish folk hero. In 1983 Walesa was awarded with the Nobel Peace Prize. Membership of Solidarity grew to over 9 million, by far overpowering the Communistic Party. Walesa, the symbol, stood up to the Kremlin and dealt the Eastern bloc a fatal blow . Solidarity transformed from an union into a -then–successful political party, which was legalized in 1989. The fatal knock out came in 1990 when Solidarity won the parliamentary elections and the presidency: Lech Walesa!
An economical cold turkey therapy transformed the Polish economy into one of the strongest in Central Europe. And acceptance to the EU in 2004 will only be a piece of cake (with candles for Lech Walesa!). In 1999 Poland joined the NATO membership.
On May 12, 1817, the first stock exchange in Warsaw was opened and just before the second world war – even – seven stock exchanges operated in Poland.
The new legal framework, the Act on Public Trading in Securities and Trust Fund was adopted in March 1991, and the Warsaw Stock Exchange (WSE) joint-stock company was established by the State Treasury in April 1991. At the same time, the Polish Securities Commission was created. In October 1994, WSE was admitted as a full member to the International Federation of Stock Exchanges (FIBV).
Foreign investors are generally subject to the same rules and regulations as Polish investors. Rules on taxation for foreign investors are regulated by intergovernmental treaties on the avoidance of double taxation, or agreements on reciprocity treatment. Such treaties are signed with majority of European countries and developed countries outside Europe.
The rule of free entry and exit exists in Poland in terms of foreign investment. Capital gains can be repatriated without obtaining any permission.
| Population: | 38,625,478 (July 2002 est.) |
|---|---|
| Age Structure | 0-14 years: 17.9% (male 3,535,701; female 3,361,515) |
| Currency: | Polish Zloty (PLZ) |
| GPD | GDP* purchasing power parity: $339.6 billion (2001 est.) GDP real growth rate: 1.5% (2001 est.) GDP per capita: purchasing power parity: $8,800 (2001 est.) |
| Internet: | According to Pentor research (June, 2002), 19 per cent of adult Poles use the internet occasionally. In the same month and year another report from PricewaterhouseCoopers predicts that in 2006 there will be 10 million internet users, against 6.5 million in 2001. |
| Telecom | Mobile phone penetration: According to the latest figures released by GUS (the Central Statistics Office), June 2002, mobile subscriber is around 10 million (around 30 per cent) and fixed lines fell to 10.5 million Poland's three leading mobile operators: are:
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The Act that set forth the conditions of the arrangement and the rules for carrying on the activity within the scope of games of chance, mutual betting and automated games is: 'The Act of July 29th, 1992 on Games of Chance, Mutual Betting and Automated Games.'
Games of Chance are defined as "games with financial or material prizes in particular whose outcome is random and whose terms and conditions of play are provided in rules of the game. Such as:
Mutual betting is betting for a financial prize, which consists in prognosticate:
Automated games are games played for financial or material prizes by means of mechanical, electromechanical or electronic machines.
Article 4 states that the "activity of numerical games and money lotteries shall be subject to the monopoly of the State". And, the Monopoly shall be realized by the Minister responsible for the affairs of the State Treasury, which for that purpose shall establish a one-person company of the State Treasury, in agreement with the Minister responsible for public finance. Realization of the monopoly by the companies shall be the sole objective of their activity."
Total value of prizes in a numerical game, totalisator or money bingo must not be lower than 50% of the amount of paid stakes and in the money lottery and award lottery – lower than 30% of total prize of lots or other proves of participation in the game to be sold.
Article 13 is on how to require a permit: The entity requesting a permit or carry the activity of games of chance, mutual betting or automated games shall present to the Minister responsible for the public finance draft rules for the game of chance, mutual betting or automated game. The rules for a game of chance, including a game constituting a monopoly of the State, for mutual betting or automated game shall be approved by the Minister responsible for public finance within 6 months.
Guests entering a casino have to be registered and have to give the following information to the casino management:
The minimum age for entering a casino, games center or bookmaking outlets is 18 years.
Chapter three of the 'The Act of July 29th, 1992 on Games of Chance, Mutual Betting and Automated Games' is on Granting permits. In article 24 is written that: permits to arrange and run the activity of games of chance, mutual betting or automated games shall be granted by the Minister responsible for public finance. When more than one entity is fulfilling relevant conditions request one permit, the minister responsible for public finance shall announce and organize tendering.
The outcome of tendering shall not be obligatory for the Minister responsible for public finance.
Capital of a joint stock company or a limited liability company which requests the permit must not be lower than the equivalent off:
Casinos may be located in towns with the following population:
Automated Games halls may be located in towns with the following population:
The games tax rate shall amount to:
The Minister responsible for public finance shall carry out supervision and inspection of the activities of entities which manage and operate games of chance, mutual betting or automated games, to the extent of conformity of such an activity with provisions of the above mentioned act, granted permit and regulations for the game of chance, mutual betting or automated game. Justified costs of the supervision shall be borne by the entity, which operates the games of chance, mutual betting or automated games.
The Minister responsible for the public finance may by an Ordinance transfer his rights to relevant tax offices.
The Minister responsible for public finance shall also carry out special fiscal supervision related to the inspection of calculation of results of gaming at tables and automates.
A new bill on gambling has appeared in the Polish Parliament in February, 2002. The ministry of Finance had already announced several times that a new draft amendment of the successor of 'The Act of July 29th, 1992 on Games of Chance, Mutual Betting and Automated Games' would come into force. It was first scheduled to take place on January 1st, 2001. Later several other dates were mentioned for the introduction of the new law, which should be compatible with the EU jurisdictions. So, EU-member companies and EU citizens should be allowed to own gambling companies in Poland. The delay in introducing the new law is caused by a row concerning accepting slot machines and on video lottery machines, to be placed in bars, petrol stations and stations.
It is a matter of prognostication, when the renewed act will come into power.
Website: www.totolotek.pl
Totolotek S.A. (Toto-Mix S.A.) is a joint–stock company established on April 1, 1992, in Warsaw. The stock and shares are held by six corporate shareholders and one thousand five hundred individuals. Most of the share capital is private-owned. The Totolotek S.A. is managed by Leszek Hanski, President, and Miroslaw Pustola, General Director, whom form the Management Board.
The Company's core business area is focused on fixed-odds, pools and mutual bets on sports' events in- and outside Poland. Since July 4th, 1994, the Totolotek S.A. is the sole entity in the Republic of Poland operating mutual bets. From the beginning of October, 2002, Totolotek S.A. has changed its name and now the new name of the company became Toto-Mix S.A.
Toto-Mix S.A. is member of the European Lotteries and the WLA. Toto-Mix S.A. has a customer base of over 6 million of Poles.
Toto-Liga is the classic toto mutual football betting (pools) and it has a long tradition in Poland. It started from 1956. Toto-Liga is a mutual bet based on picking the outcomes of 13 league matches: 1 = home-team wins; 2 = away-teams wins and 3 = draw.
Fifty percents of the lay-in is prize money. There are 4 levels of winnings for: 13, 12, 11 and 10 correct prognostications. The Toto-Liga bets have a 20% jackpot. The players may choose to make simple, system's and block's bets. The biggest win, so far, has amounted to 430,000 zlotys (nearly $ 100,000).
The Toto-Gol bets have been launched in 1998. These mutual bets are based on picking goal scores of 6 (football)matches. Fifty percent of the lay-in is prize money. There are four levels of winnings, for 6, 5, 4 and 3 accurately chosen game scores. The Toto-Gol bets have a 20 % jackpot, as well. The players may choose to make simple and system bets. The biggest win, so far, has amounted to 840,000 zlotys (nearly $ 200,000).
The Toto-Liga and the Toto-Gol bets are conducted on the basis of Rules and Regulations authorized by the Minister of Finance. The bets are sold via the Gtech's on-line system in nearly 2,500 points of sales.
In the year 2000, the Totolotek S.A has started with Toto-Mix (Oddset), the first on–line system for bookmaker bets in Poland. The new network has nearly 500 points of sales. These points work with EssNet AB on–line system: ELOS System with 750 E5 terminals. Telenor Satellite Polska is the operator of the system and also the provider of the communications.
The bookmaker Toto-mix bets are cash winning bets, based on prognostication on several type of (sports)events. It is a game of skill where players bet at pre-set odds on the outcome of sports events. One can weekly choose for 840-960 events, which are published on teletext, websites and in booklets.
The participant is able to bet by using special ticket slips or by filling in special forms at the sale points.
The bet may be set either for one or more events, which may be up to fourteen. It is also possible to make system bets with eight different options. The lowest cost of participating in the betting is 2 zlotys (nearly $ 0.5), and the maximum is 300 zlotys (nearly $ 75) per single bet. The biggest win, so far, has amounted to 20,300 zlotys (nearly $ 5,000).
All these products are addressed to a broad community of soccer fans and lovers of games of chance. Totolotek accepts bets through almost 3,000 points of sale all over Poland.
Totolotek S.A. is the sole and major organiser and operator of mutual bets and pools operating via on-line systems.
The Company actively provides financial and organizational support to all types of activities related to amateur and professional football, for example Totolotek S.A is a co-organiser of the Polish Indoor Young Amateur Soccer Players' Tournaments Toto-Gol Cup and Toto-Mix Cup.
| Product | Name of game | 2000 | 2001 |
|---|---|---|---|
| Sports Pools Toto | TOTO-LIGA, TOTO-GOL | 49,715,220 | 39,744,400 |
| Sport Pools Fixed Odds | TOTO-MIX | 7,500,000 | 58,600.000 |
| Total Sales Total | 57,215,220 | 98,344,400 | |
| Prizes Total | 30,107,000 | 60,506,054 | |
| Government Profit | 10% | 5,721,522 | 9,834,440 |
| (Local currency = Polish Zloty = PLN; 1 $ = ~ 4,04 PLN) | |||
Website: www.lotto.pl
Totalizator Sportowy is the only company on the Polish market authorized to operate numbers games. Poland's state lottery, Totalizator Sportowy Sp. z o.o., has a history of problematic tendering, management uproars and even the Polish Treasury yielded control of the State Lottery. One of the disagreements came ahead of a pending key investment decision for an on-line systems operator for the lottery monopolist, which brings some 1.0 billion zlotys ($244 million) a year to the state budget. A selection process for a systems operator worth 500 million zlotys ($122 million) as well as the fate of the Sluzewiec horse racing track was a 'Polish Diet' that spanned nearly two years.
Finally the U.S. firm GTECH (NYSE: GTK) was picked as its online operator, ending a contested tender which even led to the resignation of the Treasury Minister. The tender allowed Grytek, the Polish unit of GTECH, to continue to provide and maintain real-time computer services for the lottery over the next 10 years. According to a Polish news bulletin (May 6, 2002) Totalizator Sportowy (TS), the state lottery operator, is estimating its four-year investment needs at ZL800 million, most of which should be spend on building a system of video lotteries aimed at defending the now monopolist's market position.
According to unofficial estimates quoted by the Puls Biznesu daily, TS revenue in ten years from new games sold over the Internet and mobile telephony services would stand at ZL4.6bn, with profit at a level of ZL1.3bn. TS also plans to develop the existing distribution network. However, under the present legislation the company's activity is restricted only to lotto games and lotteries.
The company's president Miroslaw Roguski is hoping that an amendment to the lottery law will enable TS to enter into new areas of activity as well.
Lottery products are:
Website: www.pml-loterie.pl
Numbers games are undoubtedly the most popular form of gambling in Poland and the Totalizator Sportowy company was a monopoly since 1955. In its early days, the company limited itself to soccer bets, the Toto Lotek numbers game was not being introduced until 1957. In 1992 the sportsbetting of TotoLotek was placed in a new company Totolotek S.A. From the beginning of October, 2002, Totolotek changed is name into Toto-Mix S.A.
In 1958 a player won zl.3.6 million. At that time it was a fortune and it provoked vehement discussions within the Politburo of the Central Committee of the Polish
United Workers' Party. The communist party had the opinion that this was conflicting with the principles of 'socialist morality.' As a result, a pay-out ceiling of zl. 1 million was imposed.
In April 1991 the Totalizator Sportowy got computerized with the help of GTECH and in November 1991 the first lotto machines on-line became operational. Due to the new developments from 1992 to 1997, Totalizator's turnover (on current prices) increased 764 percent.
In 1998 Totalizator Sportowy was transformed into a limited-liability company 100-percent-owned by the Treasury. In 1996, Totalizator's sales revenue was just over zl.1 billion, in 1997-almost zl.1.6 billion, and in 1998 zl.2.5 billion was generated.
In the 1980s, PML still sold up to 200 million tickets a year, while in the mid nineties the average number of tickets sold did not exceed 20 million annually. Competition of lotteries organized by newspapers (start of scratchcards!) and promotional lotteries caused the dip, as well as the illegal foreign lotteries with higher prize moneys (and hard currency!). Polski Monopol Loteryjny is the only company on the Polish market authorized to operate money lotteries.
PML wants to add Video Lotteries and TV Games to its product range.
Polski Monopol Loteryjny had been for a long time been looking for a foreign partner with whom to implement new projects. However, the financially troubled company was not an attractive contractor. Many potential foreign partners found co-operation with PML too risky, for it required taking the entire responsibility for implementation and financing of the project. PGS Sp. z o.o. has been the only company to take interest in PML plans and entered into cooperation with the Polish company. Registered and active in Poland, PGS Sp.z.o.o delivers advanced consulting and technical services to gaming businesses.
Following 12 months of joint efforts, PML and PGS signed a contract for co-operation in development of video lottery operations on the Polish market. Under the contract, PGS will deliver a ready-to-launch video lottery system and it will be servicing the system as the operator following the launch of video lotteries. As is a standard practice in the industry, the contract has been signed for 10 years. PGS has stated that it is fully prepared to make the investment and deliver the technology and services to PML.
PML was allowed to enter into co-operation with PGS by the Public Procurement Office. The contract was also approved by the Supervisory Board of PML. As the establishing body of PML, the Treasury Ministry supported the video lottery project along with the conditions of co-operation with PGS in development and implementation of the project.
Also Toto-Mix S.A. and Totalizator Sportowy Sp. z o.o. have informed the Government that they are willing to operate the profitable VLT's products. So, the waiting is for the new act coming into power and the tendering of a permit.
In Poland some five serious national bookmakers are operating. The most well known and most sophisticated is Interia.pl (www.sport.interia.pl) formerly known as: BETAKO.
Legal casinos began to appear in Poland in the late 1980s and experienced their most dramatic development in the early 1990s. The business became less profitable after the introduction of the 1992 law on games of chance and mutual betting, and several casinos were closed. The law required the withdrawal of foreign shareholders from companies running casinos, established a cap on the number of casinos in each city (for example, in Warsaw, only three were allowed), and introduced a less-favorable, 45-percent flat tax. A requirement that all customers register also decreased interest in casino gambling and bingo halls.
With thanks to: Andrzej Ratajczyk
ATSI S.A., Advanced Technology System International, develops customized software solutions for a variety of different industries including but not limited to the gaming and wagering industry. In December 2001 ATSI, based in Kraków, Poland, entered into an agreement with Access Gaming Systems (Europe) Ltd. to become a game development partner for the Access interactive gaming platform. ATSI has chosen to become a GDK partner to use its extensive internet and gaming background to explore new opportunities in the area of new media entertainment. The GDK allows customers and 3rd party developers to modify and write their own games independently of AGS.