THE NEW SPANISH GAMBLING ACT Albert Agustinoy Guilayn

THE NEW SPANISH GAMBLING ACT WHERE DO WE COME FROM? THE NEW SPANISH GAMBLING ACT WHERE ARE WE NOW? WHERE ARE WE GOING TO?

THE NEW SPANISH GAMBLING ACT WHERE DO WE COME FROM? Outdated regulations… … Restrictive regulations… … Ignored regulations…

THE NEW SPANISH GAMBLING ACT WHERE ARE WE NOW? Act no. 13/2011, dated May 27th

THE NEW SPANISH GAMBLING ACT WHERE ARE WE NOW? Definition of “gambling” (including skill games) Cathegories of “authorized” games Double system of licences (general / singular) Advertising / sponsorship Regulatory requirements for operation of gambling activities in Spain Infringements / sanctions Taxes / administrative fees

THE NEW SPANISH GAMBLING ACT WHERE ARE WE NOW? Interim period … for sponsorship … for advertising (… although other regulations do already apply –e.g. TV broadcasting-) … for operating (since no sanctions can be imposed)

THE NEW SPANISH GAMBLING ACT WHERE ARE WE NOW? The rest of provisions are already in force Particularly… TAXES The new gambling tax : 25% GPT + Potential additional regional rate Tax forms to be released shortly First payment to be made on July 31… … hence, need to be registered before the Spanish tax authorities before July 31

THE NEW SPANISH GAMBLING ACT Models of inspiration WHERE ARE WE GOING TO?

THE NEW SPANISH GAMBLING ACT The new regulatory framework must be in place by… WHERE ARE WE GOING TO? 2012

THE NEW SPANISH GAMBLING ACT GAMES TO BE APPROVED (LIKELY) BY WHERE ARE WE GOING TO? Sport mutual betting Fixed-odds betting Horse-racing mutual betting Horse-racing fixed-odds betting Bingo Poker Roulette Black Jack “Soft games”

THE NEW SPANISH GAMBLING ACT Some issues on games… WHERE ARE WE GOING TO? The particular situation of exchange betting and virtual slot machines The Act sets forth the right for general licenses’ holders to request approval of games -> 6 months No international liquidity will be permitted… initially The treatment of live betting

THE NEW SPANISH GAMBLING ACT Legal requirements WHERE ARE WE GOING TO? The applicant must be an entity based in the EES and under the legal form of a public limited company (“sociedad anónima”) The corporate object of the applicant must be exclusivelly the operation and promotion of gambling activities Fulfillment of all tax and social security duties

THE NEW SPANISH GAMBLING ACT Financial requirements WHERE ARE WE GOING TO? The applicant must count with a minimum social capital (€100,000?) Financial guarantees: - For general licenses -> €2M to €2.5M - For singular licenses -> % on profits obtained Spanish bank account

THE NEW SPANISH GAMBLING ACT Technical requirements WHERE ARE WE GOING TO? Use of a.ES domain name Allow remote monitoring by authorities: secured database Location of equipment in Spain -> replica server? Secure identification of players Periodical security audits

THE NEW SPANISH GAMBLING ACT Terms for singular licenses WHERE ARE WE GOING TO? Mutual bets -> 5 years Fixed-odds bets -> 5 years / 3 years (horse-racing) Poker -> 3 years Bingo -> 5 years Roulette -> 3 years Black Jack -> 3 years

THE NEW SPANISH GAMBLING ACT Advertising regulations WHERE ARE WE GOING TO? TV and radio advertising would be authorized Application of content restrictions -> bonuses Significant importance of self-regulations and other regulations (e.g. TV broadcasting) Application of time restrictions

THE NEW SPANISH GAMBLING ACT Likely calendar WHERE ARE WE GOING TO? July: publication of draft version of main regulations (requirements; games; etc.) December: Granting of first set of general licences and (provisional) singular licences October: Call for general licences (later) October: Call for singular licences

THE NEW SPANISH GAMBLING ACT