by Mario Alfonsi | Published on May 16, 2012 | Updated on May 16, 2012We’ve talked a lot recently about the upcoming plans to regulate Spain’s online poker market. The regulations are set to kick in on June 1st, when Spain will begin awarding licenses to some of the more than 60 different companies that have applied to be a part of the market. However, a last minute change in the taxation demands from the Spanish government could send many of the potential licensees running.According to several published reports, the Spanish government has now added a demand that any group hoping to gain a license in Spain will first be required to pay back taxes for the past four years, dating back to 2008. The companies would have to pay the taxes that they would have been charged had they been operating under the forthcoming regulatory scheme.With the regulations charging a tax of 25% of each site’s profits, that’s a very hefty bill for some companies. For instance, PokerStars would be expected to pay €200 million or more based on the revenue they made from Spanish players over the last four years. Another major player, bwin.party, would have to pay around €60 million based on profits from Party Poker.Not surprisingly, this reportedly has many companies rethinking their commitment to obtaining a Spanish license. Many companies had already balked at the 25% tax, with companies like Bodog and PKR choosing to simply exit the market rather than deal with the new regulations.However, the new demand could play right into the hands of some sites. Companies that did no (or very little) online poker business in Spain over the last four years wouldn’t owe much money, and seeing larger competitors drop out, could fill the void and do well in Spain. Another possible scenario could see PokerStars being the only major site willing to pay the back taxes, allowing them to have a stranglehold on the market. It is likely that many companies will make their decisions on Spain in the days and weeks to come, though it may not be clear what the final outcome is until after licenses are awarded in June.
