The Spanish regional and federal governments are this week discussing the final form of a draft bill to regulate the online gambling market in Spain.
Due to be presented to Parliament early in the New Year, the bill will give rise to a forward thinking and effective licensing regime for the sector, with consumers and online betting operators welcoming Spain’s initiative to regulate its online gaming market.
The bill, however, is likely to be counterproductive if the taxation on turnover 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 per cent, as it does not allow operators to offer competitive products to consumers," said Sacha Michaud, president 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 an approach will bring consistency to the
Spanish online gambling market and enable the maximum number of operators to apply for licences."
According to Michaud, AEDAPI estimates that more than €100m in sponsorship and advertising revenue is currently invested each year by the major European sports betting operators in Spain. "This is at risk under this proposal," indicated Michaud.
An uncompetitive licensed sports betting market is likely to result in many consumers looking online for products offered by unregulated operators.
