Betfair expecting new Spanish licence

Betfair, the online betting exchange operator, has said it expects to be awarded a licence covering its sportsbook and certain casino products when the Spanish government issues a first wave of online gaming licences in early June.

The company also plans to apply for a poker licence shortly after.

Under the terms of the licences, operators will pay a gross gaming revenue tax of 25% on Spanish operations - a tax that Betfair has already been paying since May 2011 when Spain's new gambling act was introduced.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Following the receipt of the initial licences, Betfair's Exchange will be made unavailable to Spanish customers, who will be transferred to Betfair's new sportsbook until exchange licences are issued.

The Spanish regulator has recently reiterated its intention to regulate exchanges and slots in a second wave of licensing, the process for which is expected to begin once the initial licences are issued.

The company also said it would be making a payment of not more than €10m in relation to operations made between January 2009 and May 2011 as a result of historic laws.

The share price fell 1.29% to 725,50p by 15:43.

NR