Gibraltar-based Bwin has already agreed to pay the Spanish authorities around €33.6m in taxes while London-headquartered Sportingbet is expected to face a charge of around €20m to comply with the law, according to the Financial Times.

Coughing up cash

The tax laws – which date from the 1960s and 1970s – have previously not been applied to bookmakers within Spain, but with the government preparing to launch a new licensing system for internet gambling in June, it is expected that affected companies will cough up the money and take the hit to secure their futures.
Ed Birkin, an sector analyst at Barclays, told the FT: ‘The industry view is that anyone who doesn’t pay this tax is unlikely to be on the list for licences… Companies such as Bwin are taking the view that this is effectively a cost of the licensing.’

Self-assessment

Mr Birkin’s views appear to have been supported by Bwin itself, with a spokesperson telling the Gibraltar Chronicle: ‘Together with a number of other operators we have today completed a tax self-assessment in accordance with the Spanish tax authority’s requirements and as a result are making a payment of €25.6m plus surcharges and interest of up to €8m. Having taken these steps, we believe we have now fulfilled all requirements and look forward to receiving our licence and entering the Spanish market.’