Beginning next year, slot machines and casino games will reportedly see an increase in taxes courtesy of the government of Valencia.
G3Newswire reports that the new rules in the autonomous community of Spain will see operators required to pay a €3,600 annual fee in comparison to the €3,200 they currently pay per slot machine. Meanwhile, the tax charged to players who win prizes at casinos will increase from the current 15 percent paid to a minimum 20 percent and as much as €2m. For prizes won from €2m to €4m, the tax increases to 30 percent, 40 percent for prizes from €4m to €6m and for prizes over €6m, the tax increases to 50 percent. The new tax will be applicable to games which take place in the main casino, as well as those held in adjoining rooms.
The new rules are reportedly just a small part of much larger budgetary changes which have only recently been made public.
From the first day of the New Year 2018, operators of Type B machines that are located in casinos, bars and restaurants will reportedly be required to pay the new tax quarterly rather than the current yearly payment. However, a number of exemptions have been made by the Generalitat Valencia, regarding tombola and raffles. A new exemption has been introduced for raffles which take place at Christmas and other special times of the year and run by small businesses, according to G3Newswire.
Exceptions are also reportedly made for raffles and lotteries that are put together by charitable organizations such as the Red Cross and the Spanish organization for the blind, ONCE. The new rules also eliminate the one operator per province restriction thereby encouraging competition in the sector and eliminate the monopoly current licensees enjoyed in practice. According to local press, they include the Orenes Group in Castellón, Valencia, Alicante and Acrismatic.
In addition to raising taxes, because the new rules eliminate the ceiling for authorized licensees, competition opens up to the Spanish Type B street sector, which reportedly is currently restricted to all but a handful of specialized companies.