Friday, 4 February 2011

Spain's online gaming White Paper approved by Government, now to Congress

SPAIN (Agencies) The grey area of Spain's gambling laws begins to clear. The Government today approved a Proyecto de Ley de Juego (White Paper on Gambling) that for the first time regulates the kind of gambling that will be allowed, or not, on the Internet or via other electronic media such as mobile phones; it sets fines of up to €50million for operating without a license. The paper also creates a tax on gross income for operators in this industry. Taxes will be applied according to the type of activity and ranges from 5% on taxable income to 22% on sport tote gambling.>
The new law will replace that of 1977, when gambling was last legalised in Spain, and aims at covering operators that are not included in that law, particularly those using Internet and digital media.

The new law is to offer legal security to operators as well as users, will protect minors and those who have previously requested voluntary exclusion from gambling sites (some 40,000 people in Spain, so far).

Lotteries

Lotteries and similar activities are reserved for the state-run Loterías y Apuestas del Estado, of which 30% is to be privatised, and the Organización Nacional de Ciegos de España (ONCE).
The Government has decided that it should be the Comisión Nacional del Juego (National Gaming Commission) that watches over security, reliability and transparency of all gambling opeations, as well as it being the agency that issues licenses. Cooperation, coordination and participation of all autonomous regions will be controlled by the Conferencia Sectorial del Juego.

Sponsorship

The text of the law that the Government sent to Congress yesterday says that all advertiing, promotion and sponsorship activity caried out by operators must have prior permision from the National Gaming Commission. Some of these companies have become popular in Spain thanks to advertiing and sport sponsorship of La Liga football teams. Among these are Bwin, Unibet, Betfair, Interapuestas and 12bet.

Fines can range from €100,000 for a minor transgresion, to €50,000,000 for a more serious activity, such as offering bets without a license or manipulation of technology that change systems that have been given permision.

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