Madrid issues first online gaming license

The land-based casino operator is now licensed to provide poker, blackjack, roulette and slots on a soon-to-be-launched site, powered by Playtech software - as per an agreement signed in 2009 - and a player management system from Spanish solutions provider MediaTech Solutions. CGM will pay 10% tax on gross gaming revenue (also known as gross profit tax or GPT) eGaming Review understands, less than the 25% on gross gaming revenue (GGR) currently being proposed for poker and casino under the national draft.

A spokesperson for the casino confirmed to eGaming Review that beta testing will take place over the next few weeks, meaning CGM's online casino could be up and running within the next month. CGM will initially only accept play from residents of Madrid aged 18 and over, with those on the region's register of gamblers excluded from its land-based casinos barred from the website.

Madrid issued authorisations to existing land-based casinos and bingo halls in 2006/2007 for offering online betting, casino and bingo, but CGM is the first to be certified by the government of Madrid for online play.

According to sources, the license was signed on 17 May, but the public announcement was delayed until local elections had taken place. Spain’s e-gaming law, the draft of which was approved in February, is expected to be published in the country’s Official Gazette later this week.

The draft will however need to be submitted to the EC for the statutory three-month standstill period set aside for review of proposed changes to Member States’ gambling laws, which grants CGM an opportunity to gain a foothold in the country's regulated market ahead of the issuing of licenses at a national level.