iGambling Operators in Spain are in a good mood this month. This is because the Spanish Parliament has approved the 2018 Budget giving them a significant tax cut. As of July 1st, 2018, licensed iGambling operators received a 5% reduction in online gambling tax cut. The Spain Gambling Tax Reduction will apply to all betting exchanges, fixed-odds betting and horse racing.
Furthermore, the new tax reductions will cover most online gambling offerings such as sports betting, bingo, poker and online casinos. However, the budget did not include any changes to the tax b online operators in Ceuta and Melilla. This is because Spain’s two autonomous cities in North Africa already enjoy a low 10% gambling tax rate.
The approved budget will thus change the tax on gross gaming revenue for online gambling companies from 25% to 20%. However, Pari-Mutuel sports betting will only see a 2% reduction from 22% to 20%. The Spanish Parliament said the tax cut is to to attract more international gambling operators into the country.
Looking to attract more Gambling Operators
The proposed gambling cuts were announced last April by Cristóbal Montoro, Spain’s former Minister of the Treasury and Public Administrations. In the announcement, he believed the tax cuts would attract more licensed companies. Furthermore, he hopes that these cuts will also help to curb unregulated gambling.
Now that Spain has reduced its online gambling tax, several sportsbook pay per head are considering entering the Spanish Market. Several companies have considered entering the Spanish Gambling market this year.
This is because the DGOJ had confirmed last December that it would open the license application for online gambling operators. The DGOJ(Directorate General for the Regulation of Gambling) is hoping that these tax cuts will help close these deals.
Following this announcement, a proposal to to set a levy on gaming revenues by Spain’s Partido Popular (PP) wad made. The proposal was submitted to the Joint Commission for Study of the Problem of Drugs to fund problem gambling treatment.