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Spain Bets on Internet
Gambling
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Spain is hoping to cash in on internet
gambling
In the US, many cash-strapped
states turned to gambling as a way to generate revenues without increasing
taxes. Pennsylvania has built several casinos, and Ohio is in the process of
constructing a new casino in Toledo. In addition to casino gambling, many
states are making plans to offer online gambling to residents. In the UK and
some parts of Europe, internet gambling has been around for years. The United
Kingdom was the first country to establish a regulated internet gambling
market. The two most popular gambling activities in the UK are online bingo at
sites like BingoHouse.com and sports
betting.
Spain is hoping to cash in on internet gambling. The government
hopes to capture desperately needed tax income. Spain has suffered from high
unemployment and massive budget deficits throughout the global recession.
Currently the unemployment rate in Spain is about 20%. The indebted government
will be awarding licenses to online gambling operators on June 1st 2012.
According to the gaming association Jdigital revenues in the internet gaming
sector will be about $1 billion by 2014. In Spain internet gaming
has been dominated by foreign firms. Unlike other countries Spain has not set a
limit on the number of online gaming licenses it will award to gaming
companies.
According to unnamed sources, 59 gaming companies have
applied for gaming licenses, and only a few that have not met the requirements
will be turned down. UK based gaming firms like Sportingbet and
Bwin.party digital have been active in
Spain’s unregulated market and are expected to be among the most prominent
contenders for Spanish internet gaming licenses. Reports say that Ladbrokes,
888 Holdings and Betfair have also applied for gaming licenses in Spain.
Fernando Henar, president of CEJ, a Spanish organization for bingo operators
told reporters "The sector is on fire, and it looks like if you are not online,
there is no future. But we will have to see who makes it through, because
online businesses can be expensive to get off the ground. The business is based
on marketing.”
Individual bets will not be taxed but online gaming
firms will face gross profit taxes of between 10% and 25%. Spain’s
outgoing central bank chief executive warned that Spain’s tax income may
not be enough to refinance 98 billion euros of debt and fund a deficit of 52
billion euros. Even though the amount of taxes the government will receive will
be relatively small every Euro will count. Spain has a lively gambling sector
and between 2008 to 2010 the amount of money wagered in Spain increased by 7
billion Euros. In addition to online gambling Spain is considering revising tax
laws to encourage US based Las Vegas Sands to build a $35 billion casino
complex in the country. |
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