Bwin.party Pays Back-tax in Spain to Secure License

Internet-based gambling companies were excited and ready to enter the Spanish market now that it is ready to issue legal licenses to operators. Spain’s government is eager to offer the licenses as the regular taxes the operators will have to pay will go a long way to helping the dwindling Spanish economy.

Before the recent legislative changes, many operators offered their services to Spanish citizens. Since the market was not regulated and was in somewhat of a gray area, the operators were not paying any taxes to Spain. However, within the last month, the Spanish government has reportedly contacted operators to discuss the amount of the back-taxes now owed. Spain has found two laws, one from 1966 and one from 1977, that had not been applied to offshore internet gambling previously but are now being applied to those who are requesting licenses.

Bwin.party will owe a whopping €25 million in back-taxes plus up to another €8 million in interest and surcharges. Bwin.party is ready to pay and recently stated: “Having taken these steps, we believe we have now fulfilled all requirements and look forward to receiving our license and entering the Spanish market.” While this is large amount for any company to pay, the possibility of functioning legally in Spain must out way the initial investment.

Some 60 companies have applied for licenses in the Spanish market and they will all have to pay back-taxes like Bwin.party if they had previously operated in Spain from January 2009 to May 2011. Time will tell if other European countries that are in the process of regulating internet gambling will subject operators to the same situation.