Valencia Government Stands Behind New Tax Regime

Valencia Government Stands Behind New Tax Regime

Staff Writer
October 24, 2017
New gambling framework in Valencia under scrutiny
Gaming operators in Valencia not happy with latest gambling reform.

The Spanish autonomous community of Valencia has recently undergone a comprehensive tax reform, which wasn't so well received by the gaming sector.

According to media reports, many operators believe the new taxes are too high, although the General Tax Department disagrees. The operators fear the effects the new law may have on the sector in the province.

Growing Complaints From the Sector

Counselor of Treasury and the Economic Model for the Generalitat Valenciana Vicent Soler said the new taxes didn't differ much from the rest of the country.

Soler emphasized the new tax would be almost on the same level as in other autonomous provinces and even stated the tax was significantly lower than in Galicia, Andalusia, and Catalonia.

Still, the National Association of Entrepreneurs of Gaming and Recreational Halls (ANESAR) expressed its concerns that the new tax regime could have catastrophic consequences for the sector as well as the local economy.

ANESAR reminded the public that the provincial government had recorded tax revenue of €88 million from slot machines and sports betting, during the last year.

Higher Fees

The new law imposes higher fees on slot machines, and a larger tax on casino wins.

Operators of Type B slot machines will be required to pay a yearly fee of €3,600 per machine – an increase of 400€. Those who win in casinos will pay a tax of 20% instead of 15%, at least when it comes to winnings up to €2 million. For prizes from €2 million to €4 million, the tax rate will be 30%, from €4 million to €6 million – 40%, while all wins exceeding €6 million will be taxed at 50%.

Type B machines are common in bars across Spain, with more than 250,000 of them in use around the country.

In the community of Valencia, there is a total of 25,500 type B and C machines. While type B machines can be placed in bars, restaurants, and casinos, type C machines are allowed only on casino floors and offer much larger payouts.



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