Spanish Regulations Stalled

Published Tuesday, February 10, 2009 -

The call for clarification of the online gambling regulations in Spain remains stalled for the time being.

Tax benefits, the protection of players and the free provision of services by other E.U. nations are the main legal issues concerned. Government declared not that long ago that it would present a guide to the industry. The legal netherworld of indecision on the part of the Spanish government will cost Spain many Euros in the form of lost taxes. Taxes are the focus right now in the discussions. The Spanish Association of Internet Bettors (Aedapi) estimates that the benefits for the online gaming operators in this sector far exceeded 200 million Euro last year, equating to a tax loss of around 20 million Euro at an estimated rate of 10 percent.

"A regulation must be performed, so, instead of paying in the UK, Austria or Malta, taxes are paid in Spain. Aedapi members are claiming to pay those taxes here." an Aedapi representative said. Operators abroad pay taxes in their countries of origin. In the case of British firms, online gambling has a 15 percent tax. In the secure region of Madrid, online gaming benefits have a more competitive 10 percent tax.

The Swiss-Presse report about this contentious issue has stated that the legislation may take as much as another year to conclude.

The upcoming conference coming in March 2009 in Madrid will either move the Spanish to clear the air or make the decisions even harder. International and domestic operators who are considering entering the online gambling market, know all too well that government usually takes it's time when making big decisions.

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