Spain is one of the world’s most culturally diverse countries and proud sports nations, and its gambling industry is also well-organized and legal. This guide aims at unravelling the complex structure of Spain bookmakers; this includes an analysis of the legal framework within which Spain’s gambling industry operates, the regulating bodies, and the chronology of events in the sports betting market. In this Spain sports betting guide, you will learn about licenses and fees, taxes and regulations, among other things.
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Table of Contents
Summary of Key Events
The History of Spanish Gambling Laws
Spain’s gambling framework is divided into two main categories: It being legal and the other being the prohibited gambling activities undertaken in the public and private domains. Governmental gambling is controlled by the state through SELAE and ONCE, a lottery and bingo operation. On the other hand, the private gambling entails the legal entities that are regulated by strict laws.
Some of the Laws and Regulation on Gambling
- 1880s: Cultural clubs also started becoming social places where men would meet and play billards with some betting on the side.
- 1936: Gambling was prohibited in Spain after the civil war, so after the latter persons had to avoid such activities.
- 1977: Reforms liberated almost all types of gambling.
- 2006: New laws were passed to legalise online sports betting and enable the regions to grant licenses to physical operators.
- 2011: The Spanish Gambling Act (Ley 13/2011) was implemented to govern online gambling and the Directorate General for the Regulation of Gambling (DGOJ) was formed.
Regulatory of Spain Bookmakers
The main regulatory authority in the sphere of gambling in Spain is the DGOJ, which is a department of the Ministry of Consumer Affairs. The DGOJ regulates all gambling activities to ensure that they meet the set standards as required by the law. Federal licenses are required for providing services throughout Spain and sometimes regional licenses might also be required.
Licensing Types and Fees
Licenses are categorized into general and single licenses:
- General Licenses:
- Betting
- Contests
- Other games include for example roulette, blackjack, bingo, slots, baccarat, poker.
Single Licenses:
- Fixed odds, pool and exchange betting.
- Specific game types under the general license category
Three licensing windows have been available since 2011 covering the years 2011, 2014, and 2017 in which operators could apply for licenses.
Prohibited and Allowed Bets
The laws in Spain as regards gambling set out what is acceptable in regard to bets. Allowed bets include:
- Lotteries (Affiliated only with SELAE and ONCE).
- Sporting activities betting, horse racing and fixed odds betting.
- Exchange betting
- Raffles and contests
- One armed bandits and card games (for instance, poker, roulette, baccarat, blackjack).
Excluded bets include those that are not allowed by the current legislation or those from the black list of offshore companies.
Taxes on Spain Bookmakers Gambling
Operators in Spain are subject to various taxes, including:
Gambling Machine Operators:
- Make a yearly lump sum payment (average of €3500) depending on the kind of machine and the region.
- Taxes are paid quarterly.
Casino Taxes:
- Ranges from 15% to 58% of GGR for table games while machines have a flat rate of €5,300 per year.
- Paid quarterly.
Sports Betting Operators:
- Taxes on GGR ranging from 10% to 20% depending on the region.
Online Gambling:
- 20% of stakes or GGR, that is, a percentage of the total amount of money accepted in bets and other revenues.
- The operators based in Ceuta or Melilla are subjected to a 10% GGR tax.
- Annual levy of 0. Three fourths of one percent of the gross operating revenue.
Corporate Tax
The operators are also required to pay corporate tax at the rate of 25 percent and economic activities tax (IAE) on their establishments. Also, the winnings from lotteries that are over €40,000 are taxed at the rate of 20%.
Advertising Restrictions
In November 2020, Spain implemented stringent advertising restrictions for gambling:
- The only permitted form of advertisement is on television and radio from 1:00 am to 5:00 am.
- The gambling sponsorships with football teams are not allowed.
This regulation was most recently amended by the Royal Decree 985/2020 which has imposed a stricter regime as to the advertising of the online gambling operators.
Spain Sports Betting: Information and Possibilities
It is a known fact that Spanish people are fond of sports and especially football. It is a sporting nation with greatFoot balls, basketball, tennis teams and many others. Spain has two of the largest football clubs in the world; FC Barcelona and Real Madrid CF. The national football team has clinched several international championships, the FIFA World Cup and the UEFA European Championships.
The Timeline of Spain’s Sports Betting Business
- 1992 Summer Olympics: Held in Barcelona, this event is to promote the sports in Spain.
- 2006: Legalizing of online sports betting.
- 2008: The Spanish football team emerged FAT winners of the UEFA European Championship.
- 2010: Spain takes the trophy in the FIFA World Cup.
- 2012: Spain takes the UEFA European Championship again in football.
Conclusion
The gambling environment in Spain is rather legal and properly regulated, which creates a secure framework for both gambling business and clients. Due to its historical background and well developed legislation, Spain bookmakers and sports betting lovers have a lot to expect in the future.
Thus, analyzing the specifics of the legal framework regulating gambling activities in Spain and taxes imposed on them, it is possible to avoid many potential pitfalls and successfully operate within this industry. If you are an operator who wants to get into this and start business in the Spanish market or simply a sports betting fan, Spain has a lot to offer and a very good framework.
FAQ of Spain Bookmakers
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