Sportingbet shares slumped nearly 7% today after the online gambling group admitted it faces an unexpected tax bill for its Spanish operations.
The firm didn’t say how great the damage could be, something that appeared to spook the market somewhat.
Rival Bwin.party digital made a more detailed disclosure today on the same issue, revealing that it intends to pay e33 milion (£26.6 million) to settle the matter with the Spanish tax authorities.
Bwin, formed from the merger of Bwin and Party Gaming, says the Spanish tax man has suddenly ruled that online operators with Spanish customers must pay back taxes under two old laws, one from 1966 and the other from 1977.
The laws were only previously applied to offline gaming.
Bwin hopes the payment will help it gain an eGaming licence in Spain. The government is presently in the process of awarding them.
“Having taken these steps, we believe we have now fulfilled all requirements and look forward to receiving our licence and entering the Spanish market,” the Gibraltar-based company said in a statement.
Sportingbet said it is in talks with the Spanish Ministry of Finance about a potential outstanding tax liability covering its operations in the country from January 2009 to May 2011.
Its shares tumbled 1.92p to 26.33p.
Earlier this year, Sportingbet - which has more than 2 million customers in 30 markets - had said it had met with the Spanish gaming regulator and expects to be granted a licence by May.
Analysts expect Sportingbet’s liability to be less than e20 million.
Simon French at Panmure Gordon said: “Whilst we have some concerns that this sets a precedent for other countries looking to regulate eGaming, we note every country has hitherto taken a different approach.”
