Spain Reconfirms Online Gambling Schedule

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In order to quell the speculation that has been going around in the industry, the Spanish government's home affairs and administration ministry announced this week that the national online gambling regulator Enrique Alejo would meet the current scheduled date of June 1 2012 for issuing licenses to suitable applicants. The reasons for the doubt that the regulatory framework would be in place as indicated were many and included changes in staff changes, extension of earlier deadline of April 2012, litigation from online gambling operators like Codere and the large number of applications that are under process. It has been reported that more than 59 applications have been received. The announcement clarified two other things. Once the licenses are issued the online gambling services can commence immediately. In-play betting will not be allowed, at least for now.

The speculation about the uncertainty over the Spanish online gambling regulator being able to meet the deadline was fuelled by a statement from 888 Holdings CEO Brian Mattingley. Speaking at a conference to announce his company's results, Mattingley informed that he had been to Madrid with another company executive in order to assess the situation. Their reading was that the Spanish regulator would need more time than the new deadline of June 1 allows. Mattingley, however, was impressed by the responsiveness of the regulatory authority's staff to the suggestions and ideas given.

Most of Europe's major online gambling operators have applied for licenses and are hopeful of getting them. They are counting opportunity losses with every extension of deadline. Meanwhile they are also incurring substantial costs to keep their operations in readiness so that they can go online the moment they are given the license. They are monitoring the situation very carefully and Mattingley's first hand assessment had added to the frustration and impatience. The problem is that they do not know how much credibility to attach to the assurance given by the Spanish government.

Another factor that is worrying the applicants is the number of court cases in progress where online gambling operators are involved. It is not impossible that some local operators may get an injunction from the courts to put the process on hold. One such operator is the Spanish group Codere, which has sought injunctions against foreign companies being issued licenses. Codere has generally been unsuccessful in its endeavors, except in one matter against Sportingbet, which was heard in the Commercial Court in Madrid. Sportingbet is fighting the case. Sportingbet has applied for a license under the Spanish Gambling Laws and based on regular meetings with the regulator, it expects to be granted a license along with other applicants.

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