SPAIN


CIO: What represented the hardest part of this endeavour?


SM: As is always the case, there were a number of different interests that needed to be taken into account. Land-based operators, erroneously in my opinion, thought of online gambling as a threat rather than as an opportunity while local providers were trying to protect their own interests at the expense of those wishing to enter the market. Generally speaking, we faced similar challenges that we do elsewhere in Europe when liberalisation comes to the fore, though ultimately the right result won out – with a market launched that offers opportunity for genuine competition to emerge.


CIO: Do you think everything necessary is now in place for the region?


SM: The regulatory framework provides a good basis for the gambling market yet there is room for improvement in terms of products on offer, taxation and issues around liquidity and deposits limits. Solving these would bring the Spanish market closer to an optimum level in terms of competitiveness amongst operators, value and safety for customers and financial gain for government.


“The market will be fierce and therefore if it wants to cater for a range of operators, it needs to ensure the taxation levels are right”


CIO: How important for Betfair was gaining the Spanish licence?


SM: Obtaining a licence was a must for Betfair. Spain is a key country for us and growth there is a key element of our international strategy. We think the market has a lot of potential and we’re delighted to now be licensed there. Our focus now is on getting our Exchange licensed as quickly as possible in Spain and we’re encouraged by the regulator’s appetite to get this done.


CIO: What specific products does this licence permit you to offer in Spain?


SM: At the moment, we are able to operate a sportsbook and certain casino products but we are working together with the regulator to get our exchange and poker product operational in Spain shortly.


CIO: How big a part of your business has the Spanish market been in recent times?


SM: Spain is a significant market for Betfair – an international business with almost half its business coming from outside of the UK.


CIO: Was there ever any doubt that you would receive a Spanish licence?


SM: We were always confident we would receive a licence. We’ve been one of the most active promoters of the new regulation since it was first mooted and we’ve worked closely with the regulator, who to be fair has done an impressive job getting new online gambling regulation (which can be notoriously complex) off the ground.


CIO: How large an issue was the back taxation?


SM: It was unquestionably an unexpected hurdle that we needed to overcome but we’re glad we did so because ultimately regulation and the receipt of gambling licences will benefit our business long term. We always say that any regulatory road is not without its ups and downs, in any region not just Spain. What’s important is to take a long- term view which is something we as a business have always done.


CIO: What are your current activities and future plans in this market place?


SM: We have a recognisable brand in Spain that we are going to keep pushing, with the aim being to retain our position as one of the top players in the Spanish gaming market and to enhance it further still. It’s going to be a very competitive marketplace but that is what we’ve always wanted, not just in Spain, but anywhere. Competition breeds innovation amongst operators, and crucially, better value and choice for consumers.


CIO: What do you think the future is for the Spanish market?


SM: Like I said, the regulation as it is today is a good starting point but there are tweaks which can be made over time that will optimise the market to the benefit of operators, government and consumers alike. The market will be fierce and therefore if it wants to cater for a range of operators, it needs to ensure the taxation levels are right, the product range is wide enough and any limits or restrictions in place are proportional and justifiable. We’re encouraged by the talks we’ve been having with the regulator until now and we’re confident that we share similar objectives and ideas on how to achieve these. This bodes well for the future of the market.


CIO: What do you think Betfair in particular has to offer this region?


SM: Nowadays we are offering a complete sportsbook product and also a Casino but once our Exchange is licensed, we believe that we’ll be able to offer consumers in Spain the best value, most choice and most innovative betting products. We believe we have a brand recognised for integrity, responsibility and strong customer service. These are universal Betfair features which we intend to showcase to all our customers, whichever of our products they may be using.


JULY/AUGUST 2012 51


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