Codere's Tactics Exclude Foreign Competition

Sportingbet's gambling appeal fails in Spain

Spoiling strategy of initiating legal actions against unlicensed internet gambling competitors in Spain has paid off once again for Codere - this time against Sportingbet. Madrid-based Mercantile Court has defeated Sportingbet appeal, with the judge finding its activities in Spain illegal and therefore prohibited.

UK company Sportingbet had to shut down its two Spanish websites miapuesta with .com and .es domains, after the legal dispute with Spanish gambling group. They even had to deposit 2 million Euros when appealed against an earlier Court decision

The judge's conclusion in the latest ruling, which confirmed the shut downs, sets a precedent in the Spanish gambling market: '... any offering of gaming or betting activity that has not been granted a prior administrative authorization is, indisputably, illegal and prohibited."

The new online gambling regulations set up by the General Directorate of Gaming Supervision, as the licensing and regulatory body for all online gambling in Spain, prohibits any offering and marketing of games of chance and betting carried out before May 29, 2011.

Codere argues that unlicensed foreign operators and offshore sites in Spain create inequitable competitive conditions because they operate from tax havens and do not pay Spanish taxes, and do not generate employment.

Several of the attacked companies have put forward the defense that delays accepting applications and issuing licenses in Spain created a legal vacuum. Pokerstars successfully deployed that argument in a separate case in Barcelona court.

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