Operator News
Spain – Valencia Government defends new tax rate
By Phil - 20 October 2017
The General Tax Department for the autonomous community of Valencia has defended its recent tax reform in the face of growing complaints from the gaming sector.
A number of operators have expressed their concerns that the new tax rate is too high.
However, the tax office has argued that the new rate puts the region on an equal footing with the rest of Spain.
Counsellor of Treasury and the Economic Model for the Generalitat Valenciana Vicent Soler defended the new reform saying that in general terms the new rate means that gaming tax in Valencia will be around the same as that in other communities and even below communities such as Galicia, Andalusia and Catalonia. In addition operators currently pay €800 per slot machine per quarter meaning that the tax rate is one of the lowest in the region.
The National Association of Entrepreneurs of Gaming and Recreational Halls (ANESAR) as well as other lobbying groups for the sector have warned that the new tax could have a detrimental effect on the local economy. According to a statement issued recently, new rules put at risk the €88m in tax revenue which the Generalitat obtained from slot machines and sports betting in 2016 and that the 30,000 hotels and restaurants in the region obtain a significant percentage of their profit from slot machines located on their premises.
According to new rules, operators of Type B machines will need to pay a fee of €3,600 compared to the €3,200 they pay today per slot machine per year. Meanwhile, players who win prizes in casinos will pay at least 20 per cent, instead of the 15 per cent, which they currently pay on prizes. The new rules are part of a much larger changes to the budget, which have just been made public.
Winning customers in casinos will pay 20 percent on prizes up to €2m. This rises to 30 per cent for prizes from €2m to €4m, 40 per cent from €4m to €6m and 50 per cent for prizes of over €6m. The new fee will apply to both games held in the main casino as well as in adjoining gaming rooms.
In Spain Type B machines can only accept cash and guarantee a minimum of 70 percent of the stake and can be placed in bars, restaurants and casinos. Type B slot machines or “fruit machines” are a common sight in almost every bar in Spain and there are around a quarter of a million type B slot machines dotted around the country. In Valencia, there are 25,500 type B and C machines combined. Class C machines can take other forms of payment and are only allowed in casinos. They are permitted to offer much larger jackpots and are not programmed to guarantee a percentage of the stake to the player.
