Part 2: Spain – online on a tear
Marketing boost
The changes came into effect at the start
As with other jurisdictions, the Spanish market
has been boosted by a significant marketing
of July.
Santiago Asensi, managing director at the
spend. In the first quarter, the amount laid out on Asensi law firm in Madrid, suggests the timing
advertising, sponsorships, bonuses and affiliates of the move was down to the growing
rose substantially (see Table 4). realisation within the regulator that the tax
rate was too high.
“My view is that the DGOJ realised that the
Table 4: Marketing spend breakdown 1Q18
Format
past tax rate was too high and suggested its
Spend (€m) % YoY rise Affiliates 6.3 15.4 Market Monitor. “Then, the Ministry found the
Bonuses 25.4 29.7 right moment from a political point of view to
Sponsorship 3.2 23.8 Advertising 41.4 44.9
Source: DGOJ
lowering within the Ministry of Finance,” he tells
make things happen.”
He points to the reasons for the move as laid
out in the government’s own budget statement:
• A unique tax rate for all games (except
mutual sports-charitable bets of the state
The extra spend is likely to have been, to and random combinations) will achieve a
some extent, World Cup related. Certainly the greater attraction of gaming operators to
DGOJ figures suggest marketing ramped up carry out their activities in the legal framework,
over the quarter to March. It will be interesting to avoiding illegal actions that still occur in
see whether the advertising spend in particular this sector
continues to surge in the second quarter. Again,
experience from elsewhere would suggest that
with the increased exposure, particularly on TV,
will come increased attention from politicians.
The extra spending had an effect, with new
• It is in line with the European Commission
criteria of no discrimination in taxes between
the different games
• The Autonomous Cities of Ceuta and Melilla
are granted with a 50% bonus in gaming tax.
user numbers rising 28% year-on-year to 267,856 The aim is to mitigate the effects of their
while total player numbers rose just under 25% territorial singularity, as in the other taxes
to 796,331. of the Spanish tax system
Pierre Tournier, director of government relations
Relaxing the tax at the Remote Gambling Association, points
The big news from Spain, of course, concerns out that the falling tax rate isn’t the only
the move by the government to cut the tax rate ‘online-friendly’ measure introduced by the
on online gambling, first unveiled in April. Spanish regime. “Taxation is part of it, but other
Despite political instability in Spain, the
things have been done,” he says. “More products.
measure was passed into law towards the end of They have agreed liquidity sharing on poker.
June and will see taxes for fixed-odds betting, So tax is only one aspect of the whole package
exchanges, online casino, poker and bingo all fall to improve the whole viability of the regime.”
from 25% of gross gaming revenue (GGR) to 20%.
Meanwhile, the tax on pari-mutuel sports
Channelisation in Spain
betting also falls from 22% to the new 20% level As with other countries (notably Denmark and
while horserace pool betting will fall to 15% on Sweden) the debate regarding the degree of
turnover from 20%. The only tax which hasn’t channelisation achieved by a regulated regime
been lowered is that applicable to sports betting dominates discussions with regard to online
offered by the state lottery, which remains at 22%. gaming tax rates.
iGaming Business Market Monitor • UK, Spain and Denmark • September 2018
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