The Spanish cabinet has approved a law in draft state to instill regulation on all kinds of remote gaming, including mobile gaming. The bill will be put in front of Spain’s congress before being passed along to the Senate and also the European Commission. It is expected to fully be put in place by the end of 2011 according to sources.
The actual model of the tax that was approved by the Spanish Council is not exactly known at this time, but is expected to have more information on it in the coming months. The RGA (Remote Gambling Association) have been lobbying hard for a turnover tax for betting sports. Their argument is that this would provide a rather uncompetitive offer to Spain’s consumer population. The Socialist Workers Party in Spain is speculated to be in favor of a turnover tax in contrast with increasing gross profit.
A gaming lawyer by the name of Santiago Asensi has said that the ruling party had priorities, which could pose as a serious hindrance to the progress of the drafted bill and that the format ultimately decided could benefit the online operators.
“The gaming industry and the opposition People’s Party have been clamouring hard against turnover tax, and gaming groups from all areas of Spain have been pushing hard for a gross profits tax to be implemented .
“The socialists have so far been keen to implement a turnover tax, but there is a chance that they will eventually respond to the pressure. We will only know their response when we hear the official confirmation from the government.”
The decision of the European Commission regarding the taxation of Danish online industry versus the land-based industry also posed a problem to slow down the progression of the bill, says Asensi.
“Denmark is really key to what the European Commission decides, key to all markets, not just Spain. It will also affect those countries which are already regulated, not just those looking to regulate, although I do not think it will be an issue, as I expect they will see land-based and online as different markets,” he told eGaming Review.
The drafted bill is not expected to land in the hands of the European Commission until about June or July. At this point, the legislation will be reviewed and the proposed bill will be pushed forward further.
It’s unknown at this time whether the system used in Madrid, which is primarily and autonomous one will be applied on a national level. Madrid’s current system allows operators to gain licenses once they have met a predefined set of requirements.
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