😱 Spain🇪🇸: Supreme Court rules that providers of online gambling services must pay VAT

😱 Spain🇪🇸: Supreme Court rules that providers of online gambling services must pay VAT

The ruling stems from a cassation appeal filed by Spanish operator Luckia Gaming Group, which sought to exempt its technology partners from VAT obligations. However, the appeal was dismissed and ultimately reinforced the existing tax framework, placing the operator–provider relationship at the center of regulatory and legal scrutiny within the gambling sector.

➡️ The central issue of the dispute was whether the provision of software and management-related services could be classified as ancillary to gambling activities. Had this interpretation been accepted, such services would have been exempt from VAT under Article 20 of Spain’s VAT Law.

➡️ Luckia Gaming Group argued the following in support of the tax exemption for its partners:

📌 Without the work of service providers, the gambling operator would not be able to operate.

📌 The remuneration of technology companies ultimately depends on gross gaming revenue, which, according to the operator, makes them participants in the business.

➡️ The appeal was rejected by Judgment No. 1688/2025 of the Administrative Chamber of the Spanish Supreme Court. The court held that Luckia Games SA’s technology providers do not assume any economic risk related to betting activities, and therefore cannot be considered business participants.

➡️ Additional context: beyond online betting, Luckia also operates in land-based gambling and hospitality, including casinos, gaming machines, and hotels. Internationally, the group maintains a presence in Chile🇨🇱, Peru🇵🇪, Colombia🇨🇴, Mexico🇲🇽, Croatia🇭🇷, Cameroon🇨🇲, and Portugal🇵🇹.

For reference, a concise overview of Spanish VAT applicable in 2026 is available.
#news #Europe #gambling

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