Spanish operators in search of new jurisdictions due to high taxes on online gambling
The Codere gambling operator moved digital operations to the Spanish enclave - Melilla - to reduce the tax burden.
The autonomous city of Melilla, a Spanish enclave on the coast of Morocco, confirmed that the Codere Apteestas brand, which provides online betting services, has moved its headquarters to the neighborhood. Local media report said that is not the only company moved to Melilla. Many operators are interested in a similar step. They are attracted by a 10% tax rate on gambling. The figure is half that which is charged in mainland of Spain.
In addition, to attract operators in the city, VAT rates were also reduced for technology companies that develop software for gambling.
British online gambling companies, which are currently using Gibraltar as their European headquarters, may also consider Melilla and other gambling-friendly centers, such as Malta, as an opportunity to maintain access to EU markets.
In November, the company announced a loss of €55 million for the first 10 months of 2018. Company stock prices fell to €2.86.
This month, Codere unveiled Horizon 2021, a three-year corporate restructuring program designed to halt the looming crisis caused by currency exchange problems in the main markets of Argentina and other Latin American countries.
In December, the company extended licenses for gambling operations in Mexico, which provided 35% of Codere revenues for the third quarter.