Spain Complies with Gambling Authority Wishes

When Spain’s new online gambling legislation draft was handed to cabinet last week, the bill was criticized for its proposed tax scheme. The Remote Gambling Association suggested that Spanish online gambling market scrap its VAT-like turnover tax in exchange for the more feasible gross profits tax scheme. After some careful consideration, Spain has decided to go with the RGA’s suggestions.

The specific rate of tax is still unknown, but it is hoped that gaming authorities in the country will follow the lead of the British. Despite France having one of the biggest online gambling markets on the continent, operators are none too pleased with the exorbitant tax rates that they have been required to pay. Since Spain’s laws have already faced a great deal of criticism, they will likely shy away from high tax rates for online gambling operators.

From here, the bill will move on to parliament and then Senate. If the new legislation encounters no problems, then the new laws could take effect by the end of 2011. Many countries are reforming their online gambling laws this year and by 2012, Europe’s online gambling industry could be widely diversified. The European Union encourages free trade throughout the industry and with all of the changes being made to gambling laws, this is likely to become a reality in the near future.

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