Tax Collections Bullied the Spanish Online Gambling Industry

After something we may call a minor setback in the form of a bully online betting in Spain can be considered completely legal. Although the Tax Agency of the won a battle against online gambling businesses in regards of back taxes, they are now able to perform all their operations under the Spanish law.

Several betting companies such as Bwin, Betfair and Pokerstars had to go through a legal process against the Tax Agency as it claimed earlier this month something along the lines of “if they wanted to play, they had pay”. With the approval of the new gambling law last year, they could now conduct their online gambling businesses in a legal way, however they were all required to get a licensed and also to create.es domains to be able to provide services to thousands of Spanish players. Their tax rate was set at 25% of their net revenue.

They were basically on their way to a fully legal destiny, ye there as another surprise in store for them: A couple of months ago, the Investigating Office Against Fraud (ONIF) started claiming taxes payment from the previous four years companies operated without legal coverage. Although licenses and taxes have no relation to each, they were put in the position of basically pay the old taxes or there is no license.

The association of online gaming firms JDigital then claimed the government’s legal case is based on two laws: one approved in 1966 and the other in 1977, that apparently have absolutely no relation with online gambling. Due to this delicate matter, online gaming firms issued a veiled threat to pull out of Spain if the government insisted in its efforts to collect the old taxes from the previous four years.

Of course that was not going to happen so they had an agreement and the big companies settled on different amount to pay in order to continue conducting businesses.
Online betting became officially legal on June 5 this year, and all companies were given a deadline of June 15 to adapt their websites and operations to the new Spanish regulations, for example the .es domains.

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