The Spanish parliament has implemented a 5 percent tax cut on gross gaming revenues (GGR) of licensed iGaming companies in the country.

Starting July 1, taxes imposed on online gambling operators’ GGR will be reduced from 25 percent to 20 percent after the Spanish parliament approved the country’s 2018 budget, according to the Gambling Insider report.

Taxes on pari-mutuel sports betting is reduced to 20 percent from 22 percent, while taxes on pari-mutuel horse racing and pari-mutuel betting will rise to 20 percent from 15 percent. The new tax rate cut doesn’t include iGaming companies located in the Spanish autonomous cities of Ceuta and Melilla in North Africa, which enjoy 10 percent GGR tax rate.

A recent study conducted by consultancy firm Ficom Leisure forecast Spain’s annual online gambling and betting revenue to hit €1 billion (US$1.22 billion) to €1.5 billion ($1.84 billion) in the next three to five years.