Poland: Grey space operations threaten the licensed gambling market

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The Polish sports betting market is affected by illegal operations, according to the 2020 market report by the country’s Sports Betting Trade Association Play legally outlined.

One third withdrawn from offshore operators

In the tracking activities of the legal sports betting companies, it was found that the operators of the “gray area” managed to outperform part of the licensed market 35% of 7.2 billion PLN (1.6 billion EUR) generated by the 19th licensed retail and online sports betting.

GRAJ noted that 2020 had the legal market account 800 million zl (EUR 170 million) on tax levies to the Polish Ministry of Finance despite the significant impact of the coronavirus outbreak that halted international sport.

“After a promising start, the second quarter brought global sport to a standstill. The most flexible companies with a diversified portfolio and well-developed products and technologies were able to make up for the losses incurred during these months. ”

Katarzyna Mikołajczyk, President, GAME

Growth for STS, decline for Fortuna

Poland’s market leader, STSmanaged to gradually increase its market share 46%, compared to the 45% The operator stopped in 2019 and posted revenues of ZL 3.3 billion (€ 733 million)and Katarzyna Mikołajczyk praised Mateusz Juroszek’s own gaming group for overcoming a difficult year despite the decline in sales in the second quarter.

“The pandemic has also affected local betting shops, most of which were closed during the lockdown. After the reopening, traffic in many of these locations did not return to pre-pandemic levels and some customers switched to the online channel. “

Katarzyna Mikołajczyk, President, GAME

The growth of the market leader STS looks even better against the background of the results of its biggest competitor. Fortuna Entertainment, which saw their market share decrease by 3% 28%after receipts dropped 10% to ZL 2 billion (EUR 444 million) of the ZL 2.2 billion ((EUR 488 million) the company registered in 2019.

Since STS and Fortuna have a total market share of 74%, The rest 17th Operators had to look for single-digit growth, according to the GRAJ report. Among other things, INTRALOT’s Totolotek was forced to close its entire retail business as retail gaming facilities were closed.

The trade organization of the industry also pointed out difficulties in calculating the real market value of the gambling industry in the country due to the presence of a number of illegal online operators, constantly targeting Polish residents and making up more than a third of the licensed market.