In a move likely to dramatically boost revenues for online casino operators in Spain, the Spanish parliament has passed the national budget for 2018, which includes substantial tax breaks for most types of online gambling.

In the budget, legislators agreed to lower the tax on gross gambling revenues from its current 25% to 20% across the board for fixed-odds sports betting, other fixed-odds betting, fixed-odds horseracing, betting exchanges and other games including online casino games, bingo and poker.

The new budget went even further, dropping the tax rate on pari-muteul sports betting from 22% of gross gambling revenue down to 20%, the rate set for state run sports betting operations.

The only increase in the 2018 budget was for pari-mutuel horseracing and pari-mutuel pool betting, which will be increased from its current 15% to 20% of gross gaming revenues.

Companies currently located physically in the autonomous economic zones of Ceuta and Melila will continue to be taxed at 10% of gross gaming revenue for all forms of online gambling.

The new budget is good news for Spanish online gambling operators, with analysts already predicting the market alone could hit $1.22 billion to $1.84 billion in the coming three to five years.