It seems that the Spanish Gambling GDP is set to continue rising in all sectors, especially in online gambling which has doubled in the past year.
Spanish Gambling GDP
A shake up of Spanish gambling laws during 2011 continues to stimulate growth in the the Spanish gambling industry. Last year, gambling GDP equated to 3% of the total Spanish GDP. (Gross Domestic Product)
A report prepared by the CODERE Foundation last week states that land based gambling spending in Spain last year was 25.5 billion Euros. That was an increase of 6% over the figures for 2014.
Perhaps more surprising is that spending on licensed online gambling websites increased to 8.56 million Euros. The figure last year was 4.2 billion Euros so effectively it doubled in a year. Sports betting accounted for 41.3% of the total and 78% of that was generated from online betting.
Income from State Lottery sales increased 4% to 8.78 billion Euros.
Spanish gambling laws prevent foreign online gambling organisations from operating in Spain unless they are licensed in Spain. They must have a Spanish domain name and they must pay tax on all profits generated. Spain is one of the first countries to adopt an approach to ensure all Spanish players are protected by Spanish gambling regulations. It is illegal for an international gambling website to sign up players from Spain unless they are registered and licensed by the Spanish National Gambling Commission.
Spain’s approach to controlling and regulating gambling has generated significant tax revenues. Last year, the Spanish Government generated 1.64 billion Euros in taxes. Private gambling companies paid 97 million Euros in corporate taxes.
Many argue that Spain’s approach to raising taxes on gambling is over aggressive. For example, if you win more than 2,500 Euros on the Lottery there is a 20% tax to pay.
Gambling Employment in Spain
On the plus side the increase in Spanish Gambling has now created 80,000 jobs within Spain and a further 160,000 jobs for people in gambling related service industries. Spanish Gambling GDP does increase with some social benefits.
It is claimed that Spain has one of the lowest rates for problem gambling in the world due to the high social responsibility of gambling companies.