Spain has made a 5 percent cut in its online gambling operator taxes. This is part of several gambling tax reductions that have consequences for online operators. The gross gaming revenue tax will be cut from 25 percent to 20 percent.
More licensed operators
Crisóbal Montoro, the former Minister of the Treasury and Public Administrations, announced the proposed gambling tax cuts in April. He thinks that this new measure will attract more licensed operators. It’s also a good way to fight against unregulated gambling, the former Minister commented.
What type of gambling is affected by the tax?
The new tax reductions apply to most gambling offerings, such as online casino games, fixed odds betting, Bingo and Poker. It also affects sports betting and betting exchanges. Take pari-mutuel sports betting for example. After a cut of 2 percent it’s being reduced to 20 percent. Both pari-mutuel pool betting and horse racing see their gross gaming revenues rise with 5 percent though, from 15 to 20 percent.
No consequences for autonomous cities
The Spanish budget does not change the ten percent tax rate for online operators who are active in Ceuta and Melilla. Perhaps you’ve never heard of it, but these are two Spanish autonomous cities located in North Africa.
The DGOJ reacts
Directorate General for the Regulation of Gambling (DGOJ) is the gambling regulator in Spain. In December 2017 it was confirmed that the organization would open the license application for online gambling operators for only the third time in its history.
According to DGOJ, the regulated online gaming market must work properly so that gaming is sustainable and compatible with social welfare. Only then it’s possible to channel it into an excellent and reliable legal framework, so that customers can gamble in a safe way.
How much is the Spanish online gambling market worth?
DGOJ also delivered some interesting numbers. In the first quarter of 2018, the online gambling market in Spain reached 190.35 million dollars. In 2017 it was worth 653.48 million dollars.