Spain: AEDAPI, RGA and EGBA call for sensible tax regime

Spanish draft bill to regulate online gambling puts more than 100 million euros in advertising and sponsorship for Spanish sports at risk.

Consumers and online betting operators welcome Spanish initiative to regulate its online gaming market. The bill leaked to the press will give rise to a forward thinking and effective licensing regime for the sector. But the bill is likely to be counterproductive if the taxation on turnover (total takings) applied to sports betting is retained in its final form.

“A betting tax on turnover (applied to every transaction) is not the right way to tax the industry, even if the rate were lower than the proposed 10%, as it does not allow operators to offer competitive products to consumers” said Agustín Torres, Secretary of AEDAPI (Spanish Association of Online Gamblers).

“A tax applied to gross gaming revenue, defined as turnover less winnings, to be enacted for all other forms of gambling in Spain, is the only sensible way to effectively tax sports betting. Such approach will bring consistency to the Spanish online gambling market, and enable the maximum number of operators to apply for licences.”

“AEDAPI estimates that more than 100 million euros in sponsorship and advertising revenue is currently invested each year by the major European sports betting operators in Spain, and this is at risk under this proposal”, indicated Torres.

An uncompetitive licensed sports betting market is likely to result in many consumers looking online for products offered by unregulated operators. Recently, taxation has been under scrutiny in France, where a new licensing regime launched prior to the World Cup applies a high turnover tax to sports betting.

The online gambling industry would welcome the opportunity to share its expertise during a public consultation.