M&A IN SPAIN
Mergers & acquisitions in the Spanish Gambling Market WITHOUT THE OPTION TO TRANSFER SPANISH GAMBLING LICENSES XAVI MUÑOZ BELLVEHÍ REPORTS ON THE POSSIBILITY OF ENTERING THE MARKET THROUGH ACQUISITION
The market The Spanish gambling and betting market was regulated and opened up in year 2011. The market has developed over 12 years and is now quite mature. There are currently around 80 operators holding gambling licenses with around 65 actively offering online gambling and betting services. In 2022 the market closed with a GGR of €962 million, an 18 percent increase on the previous year. Spain is based on a closed licensing system, which opens up for the allocation of new licenses approximately every 3-5 years, depending on the formal demand from potential new entrants. The last window for Spanish gambling licenses closed at the end of 2018. Companies interested in obtaining a license in Spain may apply to the Spanish Gambling Regulator (Dirección General de Ordenación del Juego “DGOJ”). Each request would be taken
in consideration in order to assess whether a new licensing window should be opened or not. Since a new licensing window is not expected any time soon and gambling licenses are non-transferable, they can only be acquired or sold in the framework of an M&A transaction. Therefore, any company currently wishing to enter the Spanish gaming market can only obtain a Spanish license by acquiring an existing operator. The Law provides for three types of licence: General Licence, Singular Licence and Authorisation. Operators holding a General License are able to apply for any type of Singular Licenses at any time (unlike General Licences, there is not a specific licensing window for Singular Licences as long as the company is already covered by a General License). Each Singular Licence must be granted under the umbrella of a General License as shown in table 1. opposite. The currently applicable taxation is shown in table 2. opposite.
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IMGL MAGAZINE | JULY 2023
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