Poll results: Back-tax issues will hit Spanish market
Less than a quarter of voters believe the issue will be resolved quickly, while majority expect some offshore operators to stay away.
The majority of voters in this week’s eGaming Review poll expect at least some offshore operators to pull out of the Spanish market over ongoing disputes surrounding back-taxes, although they remain split on the impact this will have when the market opens on June 1.
A number of operators comprising as much as 80% of the market’s egaming revenues could be hit with substantial tax bills if proposed measures from Spanish authorities are upheld by the country’s Tax Fraud Office, with PokerStars potentially facing a 200m outlay representing taxes on the last four years’ earnings.
The opening of the Spanish market has been delayed on a number of occasions, with eGR readers believing the resignation of regulator Juan Carlos Alfonso would further hit the regulatory schedule, although the latest planned opening date of 1 June, when licence applicants will find out whether or not they have been successful, is ahead of the 30 June deadline.
However the measures are unconnected to the country’s General Directorate for the Regulation of Gambling (DGOJ), meaning few operators seem overly concerned about its impact on the success or otherwise of their applications.
Norbert Teufelberger, co-CEO of bwin.party whose tax bill could reach 60m if the measures are upheld, said in an analyst call this week that he felt it was “very hard to perceive what the outcome will be” but stressed that he felt the claims were unfounded.
Indeed the highest proportion of voters (40%) believe that some international operators will opt against entering, although they expect their market share to be swallowed up by local brands.
A minority of operators, including Bodog Europe, have already exited the market rather than apply for a dot.es licence.
However some 37% of those polled are less optimistic, anticipating loyalty to departed brands to hit the market hard as players forego licensed operators in favour of those driven away from the dot.es environment.
In an opinion piece for eGR in March, lawyer Pedro López described the Tax Office’s plans as “alarming” and noted that despite the questionable legality of the move the authorities were “prepared to fight for it”.
Perhaps with this in mind, a minority of voters (23%), remain convinced that the issue will be resolved quickly and an understanding will be reached ahead of the market opening.