Spain offers gambling sector a 5% tax break
The Spanish parliament has voted through its 2018 fiscal budget with a number of online gambling services given a 5% tax break.
Tax taken from gambling revenues in Spain are set to be cut from 25% to 20% for some sectors with the implementation of the 2018 fiscal budget. Sports betting, exchange betting, online casinos and horse racing are set to benefit from the tax cut.
Spain has seen political change recently, with former prime minister, Marian Rajoy, ousted from his post before stepping down as leader of the conservative People’s Party in June.
However, the fiscal budget has continued through parliament under new leader Pedro Sanchez of the PSOE Socialist party after initial terms were agreed in May.
The gambling market in Spain is growing rapidly and with an expansion to its licensing program soon to be implemented, new operators will shortly be joining the Spanish market.
The market is regulated by the Dirección General de Ordenación del Juego (DGOJ) and is one of the fastest growing in Europe.
Italy bans gambling advertisements
Things aren’t looking so rosy for operators in Italy however. The country was one of Europe’s fastest growing markets, but political upheaval there looks to be sending things in the other direction.
The new coalition government in Italy has this week introduced a blanket ban of advertisements for gambling products.
All forms of adverts across all forms of media – including the internet – are set to be banned once the rule is implemented in 2019.
Those operators with advertising contracts still in place will be able to see the contracts out until the licence expires, but will be unable to renew. The cut off date will be June 2019.
Not all are convinced that the move is the right one. Logico, the country’s gambling trade association, have argued that the law will force bettors to use unlicensed, illegal operators who will still be able to advertise via third-party affiliates. The unregulated nature of these operators would offer no protections for Italian consumers.
In a statement, Logico said:
Whilst fully sharing the concerns of the institutions with regard to problem gambling, LOGiCO does not believe that this ban can produce positive effects in terms of player protection or reduce – and certainly not eliminate – the risks derived from an uncontrolled practice of the games themselves.– Statement, Logico
The government obviously disputes this, but many groups, not just gambling operators, will be affected by the advertising ban. For example, over half of the teams in the country’s top football league, Serie A, are sponsored by gambling firms.