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Treasury probes betting firms
Published:  05 July, 2007

The Spanish Tax Authority is investigating the flourishing business of on-line betting.

According to Ministry sources, “Although data is being collected no concrete measures have been taken yet.” But what is certain is that the activity of these companies, which the State General Budget for 2007 has declared illegal, is being watched.

The group of organisations dedicated to online betting does not have any regulations and, therefore, no licences, which means that they are not subject to the state taxes. In addition, legal responsibility is being transferred to the autonomous regional governments, which are competent to legislate, which makes the legal framework even more complicated.

In fact, the Treasury is receiving requests from some regional administrations, as is the case with Andalucia, asking which legislation to abide by. Others like Madrid have legislated directly. “If it goes against us we will take it to Brussels. We are being accused of encouraging compulsive gambling but the problem is the collection of the taxes”, says Juan Barrachina, Director General of Unibet, one of the leading companies in the field of betting over the Internet. On the other hand Rony Nessim of the Winunited company admits: “We cannot be at the expense of what the autonomous administrations say. There is a legal vacuum. The Administration has to take taxes and money from us”. These arguments are refuted by Miguel García Campos, General Secretary of FEMERA, for whom the European standard is quite clear: “The states can prohibit or restrict the bets. If they opt for the second, they have to be based on a series of principles such as respect of the freedom to circulate.

But the states have competency. In Spain this is a prohibited activity”


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