Spanish regulator mulls tax reduction
DGOJ deputy general says operators are "suffering" due to country's high tax demands
Spain’s remote tax regime could be set for review with a senior member of the country’s regulatory body telling eGaming Review he was “concerned” by the effects it was having on the market.
Juan Espinosa, deputy director general for gambling regulation at La Dirección General de Ordenación del Juego (DGOJ), said many operators were struggling to cope with the demands of a 25% gross gaming levy.
Many observers list the rate of tax to be one of the main reasons behind the recent decline in the Spanish market while the regulator admits there are “certain scale requirements” for operators to succeed.
“We do see the point and this is something we are looking at and analysing in order to consider proposing a revision,” Espinosa said.
Betsson CEO Magnus Silvferberg has recently rejected speculation the operator was considering entry to the Spanish market after he deemed the tax was set “too high”.
“This is something nearly all operators raise with us, whether or not they are already active in the market,” Espinosa said.
“The ones that are active are suffering and for the other ones, those that are not yet active, it is an element in their rational decision.”
Despite what he called “a very demanding” levy, Espinosa said the DGOJ continues to field regular requests from unlicensed operators looking to gain access to the market.
“We are consistently receiving requests to enter the market or for us to open the application window, particularly in the light of future developments as regards certain categories of games such as slots.
“Operators are still interested in the market even though the tax regime might not be all that favourable to them,” he said.
The DGOJ hopes to implement the long-awaited slots and exchange regulation before the summer following which it will prepare to re-open the licence application window.