TAX RELIEFS TO GAMBLING ANNOUNCED BY SPANISH GOVERNMENT
Tax cuts for various forms of betting and gambling have been announced in Spain this week, as central government introduced the Draft Budget Bill which envisions taxing the industry’s majority of the product line-up at a more affordable rate of 20% on GGR instead of the current 25%.
Attracting more licensed operators and improved consumer channelling rate are the rationale behind the decision made by the Government, subsequent to the months of lobbying performed on behalf of the nation’s leading operators, the process firstly resulted in passing the new Gaming Bill back in 2011 and opening of a subsequent licencing windows.
The projected change in budget structure is to be applied to fixed-odds sports betting, betting exchanges and fixed-odds horseracing, but also to online casino, poker and bingo.
However, there is a massive road ahead of this reform, as the ruling party struggles to assure the absolute legislative majority needed for the passing of the Bill in light of the country’s ongoing political crisis. Furthermore, the Spanish division of competence is such that the federal authority is in charge of lotteries and complete online gambling offer, whereas retail offer is under the jurisdiction of regional territorial units.
The legislative process is expected to last at least one month, with the new tax regime to enter into force in summer this year.