“The government has said it is unhappy with the public tender process and I think it will make changes, such as removing the requirement to wait for 18 months to apply again after the ?rst set of licences is issued. I think the government is likely to open it back up once an operator has met requirements. Also I understand it believes 25% GGR tax is too high and it will try to deal with that,” adds Asensi. The discovery of ?aws, Asensi argues, is understandable, and indeed something which any
€2m
Bank guarantee (with a Spanish-registered bank) required by all egaming licence applicants on top of the €2m cost of a betting licence.
“IT’S A WORK IN PROGRESS. NOW WE HAVE A COMPLETE SET OF REGULATIONS THE GOVERNMENT WILL GAIN EXPERIENCE AND KEEP CHANGING AS IS NECESSARY”
? Santiago Asensi, lawyer, Asensi Abogados
ruling party would have most likely discovered, regardless of whether it was the previous government, the Popular Party, or another party. “This is something the socialist party would have probably executed eventually. It’s a work in progress. Now we have a complete set of regulations the government will gain experience and keep changing as is necessary,” he explains. Advertising uncertainty Another of the main questions surrounding several operators’ entry into the market concerns marketing legislation, something still shrouded in doubt. While Asensi con?rms that large media groups including Tele5 and Antena3 are among the ?rst licence applicants, suggesting “this is the right decision as they have the support of having (for exampl e) their own TV channel,” unforeseen advertising and marketing restrictions may yet throw a spanner in the works. Willem van Oort, CEO of Madrid-based marketing company Gran Via Online, says: “Marca already has a white-label agreement with Unibet, but the question is whether it will do anything with them after having had the agreement for three to four years. “Legally it’s still a bit complex. If you make the commercial decisions of a company you need a distinct licence of your own, and this could mean that some [media organisations or white-
label partners] set up a new company just for the purposes of applying for a Spanish licence,” adds van Oort. Those that begin advertising after the publication of the ?rst list of licensees have already been strongly encouraged to consult the Spanish equivalent of UK broadcasting regulator Ofcom. “It is difficult to make predictions when you don’t know whether you can allow free bets, put someone in a Ferrari to advertise your company, and so on,” van Oort adds. “The rules that apply to advertising will not be published until January so for media companies it’s still very much a shot in the dark.” Investment in marketing is even more relevant considering the overall cost of entry into the market, something that could easily put off smaller operators. One unnamed CEO, whose company is currently in the process of applying for a Spanish licence, explained: “In year one, a general licence requires a bank guarantee of €2m, while a betting licence also costs €2m (so €4m in total). From year two these reduce. “These guarantees have to be provided by a Spanish-registered bank, or a security bond from Spanish insurance company will suffice, and I expect some smaller skins [currently operating in Spain] won’t bother due to costs.” Trust is also an issue, with van Oort noting there has been “a strong desire from operators to ensure their affiliates are completely white.” This has led Gran Via Online to prepare to launch the ?rst fully
“The rules that apply to advertising will not be published until January so for media companies [applying for a licence] it’s still very much a shot in the dark.” Willem van Oort, CEO, Gran Via Online
Trust: Willem van Oort, CEO, Gran Via Online
25%
Gross gaming revenue tax included in the legislation, a figure which the Popular Party is believed to consider too high.
dot.es affiliate site in January. There are undoubtedly some deterrents, but by the time the ?rst list of licensees is published we could still see close to 40 names, many of them existing egaming operators or joint ventures including recognised companies. The bigger question perhaps is just how much things will change over the course of the year, and indeed whether the new government is forced to step in to change legislation it has never publicly supported. ?
34
www.egrmagazine.com