Gamesys to launch second gaming brand in Spain
Operator targets multi-brand approach amid Ceuta office relocation
Gamesys Group is looking to launch a second gambling brand in Spain as the group pivots towards a multi-brand approach in the market.
The group currently operates a single brand in Spain, Botemania, having launched there in 2007. However, following the completion of the merger between Gamesys and JPJ group in October, EGR understands the company is readying a second brand launch.
Gamesys Group had applied to the General Directorate for the Regulation of Gambling (DGOJ) for a licence in December, subject to a maximum six-month timescale for completion of application.
Details of which existing Gamesys Group brand will be launched in Spain have not been revealed, however its current portfolio include Vera&John, Virgin Casino, Virgin Bet, Heart Casino and Monopoly Casino.
In addition, the Spanish offices of the group have been relocated from its current base in Gibraltar to the Spanish enclave of Ceuta.
The business was initially relocated in December, however EGR understands the tax domicile of the business will be transferred to Ceuta in order to take advantage of preferential tax rates for operators.
Operators based in Ceuta pay reduced corporate income tax of 12.5% and a reduced tax rate of 10% on gross gaming revenue. Spanish operators domiciled in other parts of Spain currently pay 25% corporate income tax and 20% tax on gross gaming revenues.
Gamesys Group market share in Spain is currently estimated to be 14% for online casino, while the operator has licences for bingo, slots, blackjack and roulette.
In a recent investor call following the group’s 2019 results, CEO Lee Fenton said the chosen brand would depend entirely on the success of digital marketing activities there, following the government’s decision to impose severe restrictions on gambling advertising.
“Many of our competitors do rely quite heavily on TV advertising and we have always been digital marketing specialists,” Fenton said.
“We will continue to do that and even though we might have some video limitations on YouTube and Facebook advertising, we still think it will play to our strengths in Spain, and make sure we are even more competitive than we are today,” Fenton added.