News

Tuesday, 02 November 2010 11:35

While the central government in Spain is trying to implement new laws to regulate online gambling, the autonomous regional governments are arguing over the spoils.

In Spain, as it is in many countries, the current laws regarding online gambling operate on a tiered system with some overall regulations governed at national level and other more specific ones overseen by the local governments responsible for the running of its several autonomous regions. This system normally works well and frees the central government from having to deal with local issues, while allowing it to be more concerned with those that affect the country as a whole.

At the moment, Spain's federal government is pushing through a bill to cover several aspects of its gaming laws with emphasis on the structure of taxation with a deadline of the end of the year. It is here that it is meeting with some opposition from some of the regional governments who are not overly happy with the way it is being presented.

The gaming and taxation director in Madrid feels that some regional authorities are being neglected while others who already have their own regulations in place for online gambling are being completely ignored. The problem is that should negotiations be scheduled between the federal and regional governments, the bill could be stalled. This would cost the country in terms of lost tax revenue from the gambling industry.

Another part of the problem comes from Spain's national lottery operator, Loterias y Apuestas del Estado, which has been at the centre of delays to any gambling reforms while it stalls for more time for the development of its own viable online gaming business. Part of the government's latest bill on gambling also contains plans to move parts of Loterias y Apuestas del Estado into the private sector, which resulted in threats of strike action by lottery vendors.

There are now suggestions coming from market analysts that the proposed changes to Spain's online gaming market will be delayed until late next year, with some suggesting that proposals will not be finalised until mid 2012. But not all players are on the losing side.

For the sports book operators in Spain, the likes of Bet365 and Unibet are getting a free ride without having to pay taxes on their business. They are not currently required to hold a licence, which will change once the new proposals come into force. This allows them greater liquidity to make preparations for the proposed liberalisation of online gambling in Greece.