Spain reduces tax rates for online gambling operators
Spanish legislators have reduced the amount of tax rates for online gambling operators in the country. The changes will took effect on 1st of July.
The document regarding the planning of the state budget confirmed the reduction of tax rates from 25% to 20%. A five percent reduction will apply to online betting with a fixed odds and sports betting, races and online casinos, as well as bingo and poker.
Companies located in the small Spanish enclaves of Ceuta and Melilla on the northern shores of the Mediterranean coast of Morocco will continue to be taxed at a rate of 10% of the total revenues from online games.
The tax rate on gross game income from sports betting will also decrease - from 22% to 20%. Thus, it was brought into line with the tax rate for public betting services.
Changes are welcomed by gambling companies that have interests in the Spanish market. Previously, many believed that the tax rates for online operators were too high.
Tax cuts will be an additional incentive for the online gambling sector in Spain, which is experiencing sustained growth. The local gambling regulator Dirección General de Ordenación del Juego (DGOJ) recently reported a 27 percent increase in online gambling revenue during the first quarter of 2018. In April, the Ficom Leisure (consulting company) reported that annual revenues from online gambling in Spain will be from €1 to € 1.5 billion over the next three to five years.
Suggested Reading - Opposition Against Casino in Japan