Updated: June 4, 2012 (Initial publication: May 29, 2012)

Breaking news

Spanish tax services included payment of taxes one of the approval conditions of the operators of online games.

http://www.thejournalofregulation.com/spip.php?article1462

In Spain, the liberalization and legalizalisation of online games, provided by the Act for January 2012, was postponed in June 2012. The licensing by the regulator is in preparation. These licenses may relate to all kinds of games including sports betting and casino games, excluding slot machines. But the Spanish tax services informed that an implied condition of approval of an operator candidate for obtaining a licence existed: payment of taxes due in Spain. However, many companies, whose headquarters is located in another country, have high arrears of taxes calculated by the administration. It can be noticed that the fiscal interests of the States is a key element in the regulation of the games, that can interfere with the mechanism, which appears however distinct from the approval by the regulator.

© thejournalofregulation

Lawful games sector has always been of the State, because the game is a dangerous activity for those who engage. It is also true that the State is collected significant tax resources.

Dematerialization driven online games causes tax injury to States. Here, the Spain found a way to prevent: insert one of the conditions of an operator who must obtain it to lawfully operate online gaming activity, the duty of paying taxes.

This requires to this one to inform the administration of what it earns, what it owe and then pay, even to suggest seeking approval. We understand that Bwin has already negotiated with the tax administration Spanish and paid € 33 million to build his application for approval, licensing can be attributed from June 2012. Other operators are negotiating with the administration in the same perspective.

We can certainly wonder if it is entirely legal to insert such a requirement in the conditions of approval, under the principle of free competition and to what extent this tax interest is of the same order as that which is defended by the State gaming. But no doubt, operators do not have the time to ask such a question.

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