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Betting on Luck

The crisis has eliminated a large number of random SMEs, but it is still a market with excessive fragmentation

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Betting on Luck

In ory, gambling is one of most future-looking businesses. It exploits natural tendency of individual to be enriched by chance; It is same spring that leads to find gold or speculate in stock. The search for easy gain has a wide variety of tones and ethical timbres; Roulette is morally repudiated, but no or chance is penalized. On or hand, when it is surrounded by a rational exploitation structure, hobby of game becomes a source of work. In reality, what makes game a social evil is that it is intended to impose through public advantages. In any case, game does not have a good social reputation and that weakness is a handicap of consideration for business.

This is story of decision of public authorities to proceed to a certain tax release of game. Hacienda understands — or has understood so far — that chance is likely to become a source of income, as it is now, that it can increase if tax concessions are made. This year's budgets mark way: prizes of less than 10,000 euros are exempt from taxation; In 2019 exempt quantities will rise to 20,000 euros and in 2020 rise to 40,000. Without haste and without noise tax burden will be lightened to external beneficiaries of business. When Montoro decided to tax lotteries and pools was interpreted as a case of fiscal rapacity or extreme fundraising necessity. Now y are going to recover, by hand of Montoro himself, whose budgetary timing remains unscad incentive function of tax. It responds in all to perception of economic reality that have PP and citizens: The taxes are an obstacle to investment and employment. When you want to encourage a market, you withdraw taxes and that's it.

Has it been observed that gambling market in Spain does not work despite hopes placed on online offer and, refore, is intended to attract investments? Well, it's very probable. The Internet game progresses properly, but conventional (lotteries, pools,...) is falling and faster than digital grows. Let's put aside fact that big operators of online game are not Spanish, because in an open market nationality is irrelevant in non-strategic activities. If it is relevant, instead, Viabililidad of game business in Spain and it is interesting to know what will be business tactics to recover from fall of revenue.

The simplest interpretation of crisis of traditional game is common with problems afflicting or Spanish markets. First of all, crisis appears as a great cause or motive. Recent experience seems to suggest that when rents fall spending in luck descends in an even more accelerated proportion. The recession involves a structural reason. Small businesses abound, precisely those that disappear from map more easily when faced with a depression. The recent crisis has eliminated a large number of random SMEs, but it is still a market with excessive fragmentation. It needs anor round of concentrations until at end re are groups with sufficient competitive capacity to accompany Cirsa and Codere (in foreign hands). The decisive factor in this process has to be force of innovation. There is no qualitative leap in a market without it, but to some extent innovation is also a product of investment will. The online game is particularly sensitive to technological advancement.

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