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Taxation of operators
The Spanish model of taxation of online gambling is simple according to the formula and strict according to the discipline of execution. The basic tax for licensed online operators is 20% of GGR (Gross Gaming Revenue). This is the core of the fiscal architecture, around which the requirements for reporting, control and responsible behavior in the market are built.
1) What is GGR and where is it paid 20%
GGR = hands − winnings paid.
GGR does not include deposits as such - only actually made rates.
Rate returns/cancellations reduce "rates"; jackpots and winnings paid out increase the deductible portion.
Promotional bonuses are usually recorded as marketing expenses and/or adjustments to game revenue (practice depends on the type of bonus and license conditions), but the key idea: tax is considered from the net game result.
Example 1 (base rate 20%):- Quarterly rates = € 100 000 000
- Payouts = €94,000,000
- GGR = €6 000 000
- Tax = 20% × €6,000,000 = €1,200,000
2) Who pays and what verticals are covered
Online: sports betting (prematch/live), casino games (including slots), poker, online bingo and other permitted formats - 20% GGR.
Lotteries (SELAE, ONCE) have a separate public law regime and do not fall under the general "20% GGR" for commercial operators.
Offline (casinos, bingo halls, salons, vending machines) are subject to regional taxes of autonomous communities; there - their own rates and methods (often mixing fixed payments for machines and interest rates with revenue/margin). The online rate of 20% does not apply to offline.
3) Benefits of Ceuta and Melilla
For companies actually located and operating in Ceuta or Melilla, there is a reduced rate of 10% GGR (when meeting the criteria for economic presence: personnel, infrastructure, management). In parallel, these territories have other investment incentives (for example, on corporate tax and social contributions), which makes them popular for some operators.
Example 2 (10% discount rate):- GGR = €6 000 000
- Tax = 10% × €6,000,000 = €600,000
- Savings against the "mainland," all other things being equal: €600,000 per quarter/year (depending on the calculation period).
4) Connection with other taxes and payments
Corporate tax (CIT) is charged in addition to 20% GGR - from the company's profit according to the accounting rules (usually 25% base rate; in preferential territories - reduced effective load).
VAT on bets/winnings does not apply (games exempt), but VAT is important for purchases/services (B2B).
License and administrative fees: at a time when issuing licenses and regularly - for maintenance, inspections, certification.
5) Accounting, reporting and control
Reporting is carried out in the context of verticals (bets, casinos, poker, etc.), with decoding by parameters necessary for the regulator.
The frequency of payment is usually quarterly (in a number of cases - other cycles according to the instructions of the regulator/tax).
Data requirements: synchronization of operational logs with control systems (game counting, logging, telemetry), storage of the primary, reconciliation with audit reports.
For understatement of the base/late payment, fines, penalties and disciplinary measures are provided up to the suspension of the license.
6) How marketing and bonuses affect tax
Classic bonuses (welcome, free bet, free spins) reduce commercial margins, but do not "rewrite" the definition of GGR.
Some promotional tools can be interpreted as "win substitution" (for example, free bet payout), which is reflected in GGR through the "paid wins" component.
To optimize the fiscal and financial picture, operators typically:- separately take into account bonus loans and real money, report on rates/payments in the context of promotional campaigns, test the effectiveness of bonuses on a net GGR deposit, and not just on turnover.
7) Practical recommendations to the operator
1. Divide the accounting by verticals and territories (mainland vs. Ceuta/Melilla) in order to correctly apply the rates.
2. Standardize data sources (payment gateways, game providers, CRM): consistency is critical for the tax/regulator.
3. Prepare an "audit trail": event log, RNG/game configuration versions, promo cards - this will speed up the verification process.
4. Model P&L after taxes: Compare campaign ROI with 20% GGR, CIT and fees, otherwise it's easy to overestimate the marketing effect.
5. Follow the regional offline if you have a hybrid model: rates and autonomy techniques are different and updated regularly.
8) Scenarios and sensitivities
High volatility of winnings (jackpots, streaks) → GGR jumps and, accordingly, payments. Solution: working capital buffer.
Aggressive bonuses → an increase in turnover without a proper increase in GGR. Solution: Promotional corridors and clean GGR KPIs.
Mix shift in live betting: margins usually lower, turnover higher; the tax base is "thinner." Solution: grocery balance (casino/slots), cross-sell.
9) "Cheat sheet" at rates
Online operators (betting, casino, poker, bingo): 20% GGR.
Ceuta/Melilla at 10% GGR.
Lotteries: separate public law regime (not under the general 20%).
Offline (casinos/salons/bingo): regional taxes of autonomies (rates and methods differ).
Bottom line.
The 20% tax on GGR is the foundation of the Spanish online market: it is transparent, relatively easy to calculate and fits well with the licensing and control system. Competitive advantage is achieved not by "optimizing" the database, but by data quality, reporting discipline, promo management and - where appropriate - using preferential Ceuta/Melilla regimes with a real economic presence.