Spain’s top regulator is launching a consultation with online gaming operators and the public on plans to expand the country’s remote industry with the addition of slot machines and exchange betting.
The Dirección General de Ordenación del Juego was slated to submit a draft ministerial order to regional authorities on February 19 and begin soliciting comments from industry members and the general public via its website. The DGOJ will then amend the draft if necessary prior to submitting it to the Tax Ministry and publishing the final regulations. It’s expected operators will be up and running with machine games within six months after that.
The draft ministerial order also contains a provision to launch a new tender that will allow more operators to enter the market, which has struggled with the country’s flagging economy and is burdened additionally with a much-hated 25 percent tax rate on gaming revenue. Research financed by gaming giant Codere shows that the percentage of Spanish leisure spending on gambling, both online and land-based, decreased from 9.4 percent to 7.7 percent last year. Bricks-and-mortar casinos have seen their turnover fall from €2.5 billion in 2007 to €1.5 billion in 2012.
Madrid-based Codere itself is expected to seek protection from its creditors after defaulting earlier this month on a €127 million loan, part of a total debt load topping €1.2 billion. The company technically has until May 2 to restructure its debt, but bondholders are expected to push the company into bankruptcy proceedings ahead of that date.
