The Spanish Government’s draft bill was recently released to the public so interested parties would have the opportunity to react and propose changes. Since its release, over 200 amendments have been proposed for the bill from numerous political parties, potential online gaming operators, and trade associations. For instance, AEDAPI, the Spanish Trade Association, believes most of their changes will an excellent online gaming foundation.
Among all the entities proposing amendments, AEDAPI has some of the best suggestions. Most Spanish political parties favor licenses being granted through an administrative body rather than through a procedure that could initially bring in more revenue but also keep desired operators away that cannot afford to initially overspend.
A Reduction Of The Tax Rate
The parliamentary groups support a tax reduction, down from the 25 percent proposed tax rate. These groups feel that a lower tax rate is important for attracting new licensees among foreign gambling operators. Spain must remain competitive with the other European Union countries. The 25 percent proposed tax rate is one of the highest in the European online gambling industry.
There are several proposed amendments made that are not desirable. AEDAPI has identified these changes and deemed that they would harm the industry in Spain. The first is a call for a black period which requires applicants to cease operations before the awarding of a license. Also, operators would be barred from engaging in promotional activities during this period and be required to delete their databases.
AEDAPI has noted the adverse effects a black period could have on the Spanish gaming market. For instance, the black period would force gambling to go underground, therefore, Spanish players would seek unlicensed operators. It is estimated that 90 percent of Spanish online gaming operators are serious and willing to undergo audits. AEPAPI has also rejected the requirement for operators to have their servers within the country.
A Statement From The President Of AEDAPI
The President of AEDAPI recently released a statement saying, “The fact that a large number of amendments have been submitted by the different political groups, on the one hand, indicates that there is still much work to do but on the other, that we’re going in the right direction to build a positive framework.”
The Spanish government appears to be on the right track with excellent support for AEDAPI. They simply need to align their goals with the goals of those in the industry to find a beneficial compromise for all parties.