Proposed in April and now confirmed, the Spanish Parliament has, in its new budget, written into law several cuts on gambling taxes which should provide a boost to the industry. The decision comes as neighbouring Italy begins its clamp down on gambling and associated advertising.
Included in the budget is a significant cut in the Gross Gambling Revenue tax rate. Currently at 25%, the new budget cuts the rate to 20%. This cut will apply to fixed-odds betting, sports betting and horse-racing, and betting exchanges, as well as online casino games and poker. The parimutuel sports betting rate will also be reduced to 20% from the current 22%. The parimutuel horse-racing and pool betting rate will increase from 15% GGR to 20%.
The Spanish regulator is clearly looking to attract further investments in the sector; analysts predict the online market alone will grow to a valuation of over €1 billion in the coming three to five years. This budget should help that growth along. Meanwhile, Spain’s Partido Popular (People’s Party) has proposed the creation of a mandatory levy on gambling revenue, to be used to fund problem gambling research and treatment.
The industry has been lobbying for these cuts for years, but the lengthy economic downturn in Spain long meant little chance of seeing them. Perhaps Spain now hopes some investment might flow its way as Italy, the second-biggest European gambling nation after the UK, looks set to put a stranglehold on its gaming industry. Given that Spain’s economy is now improving, expanding by more than 3% during 2017, the government has been quick to act on that investment potential.
These changes apply from the 1st July.
