Gambling business in Spain
Land and online gambling business in Spain is legalized. The market volume in 2015 was estimated at EUR 33 billion. All forms of gambling are allowed. The bulk of the revenue (95%) comes from onshore sites. The most played is the National Lottery: it accounts for 55% of all bets. There are about 50 casinos in Spain. Visitors prefer to play board games, although slot machine revenue is also steadily growing. The most gambling region of the country is Catalonia. The gambling business is determined by the Spanish Gaming Act, which came into force on May 29, 2011. The main regulator is the General Directorate for Gambling Regulation, it is this body that issues state licenses.
Gambling legislation in Spain
The gambling business was legalized in 1977. The main law of May 29, 2011 is the Spanish Gaming Act. It regulates land-based and online business at the state level. Local authorities are responsible for gambling within the region.
Gaming Regulators
The main regulator is the General Directorate for Gambling Regulation. The organization is subordinate to the Ministry of Finance. Its functions are as follows:
Local authorities issue licenses to operators who operate within the region. They also oversee the business and monitor compliance with local laws. There are 17 regions in Spain.
Conditions for obtaining a license in a gambling jurisdiction
Licenses are issued for betting, casino games and other forms of games. Lottery licenses are not issued because they are a monopoly of two organizations:
Licenses are divided into two types: general and specific. The operator is obliged to receive both. The general license permits the conduct of bets, contests (competitions) and other gambling activities. Licenses are valid for 10 years and can be renewed for another 10.
Special licenses apply to a specific game that the operator organizes. They are issued only if the total has already been received. Such licenses are valid for one to five years.
In addition, there are licenses to organize games at the federal level (nationwide) and regional level (only in one province).
The number of licenses is not limited by law. The issuance procedure is to check how reliable the operator is and whether everything meets the appropriate requirements.
Requirements for licensed operators
The organization must be based in the economic zone of the European Union and only engage in gambling business. The company must be registered with the Spanish Commercial Register. Foreign companies are registered in a similar register in their home country. In addition, they must have a permanent representative in Spain. Also compulsory registration with the General Registry of Gambling Licences.
The operator provides all the necessary documents for their finances and economics, as well as all data on technical support and personnel.
The fee is € 38,000.00 for technical advice (required), 2,500.00 for a general license and 10,000.00 for each exclusive license. This must be paid in cash.
The guarantees are € 2,000,000.00 in total (they can work as a game operator) and € 1,000,000.00 for singles (in each game mode). It does not need to be done in cash, it can be through an insurance policy
License cost
The guarantees amount to EUR 2,000,000 in total (the one who makes the warranty can work as a gaming operator) and EUR 1,000,000 for a single license (in each game mode). It is not necessary to pay the guarantee funds in cash, and an insurance policy will do.
In addition, operators pay annual tax for the General Directorate for Gambling Regulation by January 31st. It accounts for 0.075% of the previous year's revenue.
Licensed varieties of gambling
Gambling games defined by law and requiring a license are divided into two categories: federal and regional. The list of games on the two levels is slightly different.
additional games (combine a game of luck with skills and knowledge. The main goal is entertainment). Lotteries are held only by the two organizations described above.
Seventeen regions of the country maintain their own catalogs of gambling and gaming products, which are allowed to operators. Each region establishes its own licensing procedure. On average, the list of licensed games looks like this:
All games have special licenses and separate regulations under the Spanish Gaming Act.
Gambling taxes in Spain
The amount of taxes depends on the region where the operator operates. The rates for land-based establishments are approved by the regional authorities. As an example, the scale of taxes in the Madrid region:
Taxation of casino games depends on the tax base. The basis is gross revenue. It is calculated as follows: the amount contributed by all users to play, minus the winnings and prizes paid out. If the tax base is less than 2 million EUR, then 22% is paid.
Next comes the scale for the size of the base. The maximum base is more than 5 million EUR. In this case, 45% of the gross proceeds from the casino games are paid.
Online gambling in Spain
The online gambling business in Spain is showing constant and rapid growth. At the end of 2015, 52 online operators were operating. The total amount contributed by the players was EUR 8 billion. Gross revenue was EUR 319 million, or 3.7% of all contributions.
Basically, casino games and betting are being developed. Players contribute about 50% of all costs to betting and about 25% to casino games. Contests, bingo and poker are not that popular in Spain. However, the amount spent on online poker in 2015 accounted for 20.8% of all expenses. Slot machines account for only 4.6% of the funds spent by users.
Online gambling business is limited. This means that residents can only play in their own region. But online operators can offer services both in the region and across the country. To do this, they receive a license at the federal level.
Online operators also receive separate licenses for each type of game. The list of licensed online games is the same as for land-based platforms: betting, raffles, contests, casino games, and so on.
Tax rates for online gambling business are prescribed at the federal level. The fee depends on the type of game:
Popular slot machines in the country
Despite the relatively small market share, the number of slot machines in Spain is gradually increasing every year. In 2015, 207,245 vehicles were operating in the country.
Here are the five most popular slot machines in Spain:
The Cleopatra is a five-reel IGT that enjoys continued popularity in Spain and Spanish-speaking countries.
Jackpot 6,000 is a three-reel slot machine from NetEnt. It contains 5 pay lines and gives you the opportunity to hit the jackpot for wild symbols.
Mega Joker is a Greentube online slot. Contains 5 reels and offers 40 pay lines. The maximum payout is 400,000 credits for 5 jokers.
Gonzo's Quest is a slot machine from NetEnt. It has 5 reels and 20 pay lines. The slot contains cascading reels: winning symbols disappear and are replaced by new ones, just like in a match-3 game. A chain of consecutive wins increases the prize up to 5 times. Free spins give a multiplier up to x15.
Dead or Alive is a five reel slot machine from NetEnt. Contains 5 prize lines, two wild symbols, scatter, free spins. The maximum odds are 2,500 for five scatters.
Gambling software developers
Spain is known for the following manufacturers in the gambling business:
CODERE Group is a company founded in 1980. She develops slot machines, including slots, and runs several casinos, bingo halls, sports betting sites in eight countries around the world. There are offices in Spain, Mexico, Uruguay.
MGA is one of the first Spanish companies to develop slot machines for the domestic market. Founded in 1976. It develops solutions and games for online casinos, runs bingo halls and manufactures equipment for gaming clubs and casinos.
Optima is a sports betting and online casino solutions company. Her portfolio includes programs for casino and bookmaker management, data analysis and software integration.
News from the Spanish gaming industry shows that this area is actively developing and continues to grow. The online market is growing especially rapidly. The business is well regulated and provides the country with a constant flow of resources.