Gambling firms hit by Spanish back tax raid
ONLINE gambling firms suffered yesterday after the Spanish authorities decided to enforce two historic laws and demand substantial back taxes from offshore bookmakers with customers in the country.
Bwin.party said it has completed a self-assessment process and will pay £26.56m to the Spanish taxman, expenditure that it hopes will help its bid for a new gambling licence.
Meanwhile shares in rival Sportingbet fell 6.5 per cent after it said it is in discussions with the Spanish Ministry of Finance regarding back taxes but did not indicate the size of a potential payment.
Spain’s decision to collect the duty comes at the same time it is issuing eGaming licences for online gambling sites, events that are thought to be connected.
“In April the Spanish tax authorities sought, creatively, to apply laws dating from 1966 and 1977 to online gambling operators,” said Ivor Jones, an analyst at Numis.
“While it is not explicit that the award of licences is contingent on paying the back-duty, there is an implicit threat that this is the case.”
Shares in bwin.party edged up after it said it had now met “all requirements” to gain a Spanish licence.