“The possible consequences of the interpretation are a paralysis of the whole market, fall of the companies and- as a consequence- serious losses in the state budget,” said Dawid Tokarz, of Puls Biznesu.

How is this possible? The gambling companies in the industry have worked consistently to the specifications given to them by the Ministry of Finance. The rules affected are those governing the location of the games and and the conditions of the required financial protection. Companies will now have to make a number of corrections, for example if there have been ownership changes or changes in the company board, shareholder details or if there has been a death of one of these persons. Also affected are changes to leases of gaming locations.

Each year companies send the Ministry of Finance dozens, if not hundreds of similar applications. Until this time they were given permission for this type of data correction through usage of article 155 of the Code of Administrative Procedure. However, the Ministry of Finance has just changed its mind, claiming that it is not possible to use article 155. Now gambling companies cannot change any data of this sort without applying for a new permit.

“It’s absurd. We have had cases where the chairman of the board of supervisors had died, and the building in which the gambling salon was acting has had to be destroyed. And the Ministry of Finance made the appropriate changes. If such situation took place today, in the permit there would still be the deceased and the address, that does not exist?” said Zbigniew Bembenek, owner of the ZPR group managing casinos and gaming salons.

The experts claim that according to the new interpretation, in the situation when the company makes changes and does not give them to the Ministry it would be liable to lose its permit because it would be behaving illegally. And the permit is the most important and valuable aspect to the business for all gambling companies in Poland. Theoretically the companies could apply to get another permit, but it would mean the necessity of suspending activity for up to half a year. Once a permit is lost, the licence to operate is put out to tender once more.

The new interpretation of the law is as a result of two sentences passed by the Chief Administrative Court (NSA) from in February, in which court has recognized as unacceptable changing permissions in mode of art 155 of Code of Administrative Procedure, but only in the range of changing location of the AWP machines gaming points.

“Judges are not experts in the gaming market and a Ministry of Finance representative should make them realize of consequences of such sentences for the market and the state budget” said Marek Oleszczuk, former director of the Department of Games and Mutual Wagering..

“It is a wrong interpretation and absurdity. The Exchequer exposes itself to claims for compensations,” warned the board of supervisors’ chief of one of the biggest gambling companies.

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