Interactive
Spain – Online gaming taxation could be reduced in Spain
By Phil - 6 April 2018
According to the latest State General Budget in Spain, online gambling taxes could soon see a major reduction.
The budget, which was put forward earlier this week, if approved, would introduce a generalised reduction of the tax rates applied to online gaming by as much as five per cent. The current rate stands at 25 per cent of gross gaming revenue. This will be reduced to 20 per cent if the provisions are passed. The Spanish government presented its 2018 budget to parliament after the cabinet of Prime Minister Mariano Rajoy, approved the budget last week , which includes increased pensions and payments for civil servants and families in a package designed to gain backing for the coalition government. It is the first budget since the global financial crisis in 2008 that does not include major austerity cutbacks.
In the section of the budget entitled “Tax on Gaming Activities”, the government states that the new tax will be applied to the vast majority of online games. The reduction will make the market more attractive to operators so that they may carry out their activities within the legal framework, and reduce illegal gambling. In addition, “it will eliminate any tax discrimination between the different types of gambling in line with the criterion of non-discrimination between them that is supported by the European Commission.”
Land based Gaming taxes for Spain’s two autonomous cities, Ceuta and Melill could also be cut dramatically. Taxes for casinos would be reduced by 50 per cent under current proposals placing it at 10 per cent.
There could be a number of significant changes on the way in the online gaming market as the industry continues to report continued growth. In March, The Directorate General for the Regulation of Gambling (DGOJ) initiated the preliminary public consultation for the modifications that regulate all forms of online gambling. According to the DGOJ, the aim of the consultation is to apply the right modifications to ministerial decrees when it comes to the context of the online gaming market. Decrees will be put in place in order to improve player protection measures, look at ways to protect minors, strengthen measures against fraud, money laundering and other criminal activities and enhance the online gaming marketplace.
It will also be used to clarify the different types of gaming that can be offered under different licenses. At the same time, the decrees will also address and systematise the framework under which certain games would be commercialized when the regulatory framework is not currently satisfactory. These will include new games such as daily fantasy sports and bets on virtual sports or games played via live casino other than roulette. It will also simplify certain requirements relating to new modes of play for already existing games.
