Starting July 1st Spanish legislators are cutting tax rates for gambling operators in the country. The tax cuts are an effort to attract more licensed operators to Spain and help combat the country’s offshore gambling market.
A 5% reduction in gross gaming revenue from 25% to 20% has been confirmed. The cut will apply to a variety of online gaming activities, such as sports betting, fixed-odds betting, fixed-odds horse racing, online casino games, bingo and poker, and betting exchanges.
Following from the RGD increase announcement in the UK, should operators be looking at Spain to make up for the fall in profits that they’re likely to suffer?
For a multitude of reasons, the market in Spain has remained relatively small, but the signs are that things are starting to change. Recent figures showed 14.5% year-on-year growth in sports betting, and a staggering 51% increase in the casino and a 42% growth in poker. The launch of a shared liquidity network with France will surely see the poker vertical grow further still.
Whilst Spain remains a relatively immature market with strict regulation, there is certainly an opportunity for more supply, hence why more operators have recently been allowed to apply for licenses. There is still a long way to go before Spain really scales up and becomes a big player at the European level. However, it can no longer be ignored.