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Spain To Tax Online Gambling

by Ulrika Lomas,, Brussels

24 September 2010

Spain’s Council of Ministers has approved a draft of a new Gambling Act, which is designed to regulate and tax all forms of gambling including online, interactive television and mobile gambling.

The draft legislation has tax and regulatory provisions relating to advertising, sponsorship, consumer protection for minors and problem players and counter-measures against fraud and money laundering. Suitable applicants may be granted five year licenses.

It is unclear how this legislation would tie in with separate initiatives in the regions of Spain except that Madrid recognizes that most of the tax revenue would be allocated to regional governments. Earlier this month Catalonia had announced its own plans to tax and regulate online gambling with EUR600,000 fines for operators who did business illegally in Catalonia. A spokesman for the ministry of finance said that a national regulatory body was needed, in which regional governments could participate.

Economy Minister, Elena Salgado, said the bill to be presented to parliament would also include the privatization of the state lottery and betting agency (LAE) and would end the regulatory vacuum on online gambling, a growing industry generating annual turnover of at least EUR200m in Spain.

A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at and a description of the report can be seen at
TAGS: tax | business | gambling tax | commerce | e-commerce | gambling | legislation | Spain

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