Spanish media has published revelations of regulatory manipulation and conflicts of interest surrounding former Finance Minister Cristóbal Montoro and his alleged close relationship with Codere SA.
Mossos d’Esquadra, the Autonomous Police Agency of Catalunya, has published initial findings of its investigation of ‘Equipo Económico‘, the former consultancy practice of Montoro.
A figurehead in Spanish politics, business and economics, Montoro is the twice serving Finance Minister of Spain under the former Partido Popular (PP), conservative governments of PM José María Aznar (2000-to-2004) and PM Mariano Rajoy (2011-2018).
The investigation relates to Montoro’s former business contracts, dealings and lobbying prior to serving in the cabinet of PM Rajoy. Montoro is reported to have had a close business relationship with Codere board member Rafael Catalá, the former Secretary of Codere’s Board and later appointed Minister of Justice under PM Rajoy.
Allegations take place prior to the passing of Gambling Law 13/2011 in June 2011 by the outgoing Democratic Socialist Workers’ Party (PSOE) government under PM José Luis Zapatero, just months before the Partido Popular came to power in December 2011.
The law was authorised to regulate Spain’s rapidly growing online gambling industry, introducing licensing, tax obligations, and compliance protocols.
However, upon entering office, Montoro’s Ministry of Finance allegedly manipulated regulations in favour of domestic firms. Emails obtained by Catalan Police show that Montoro’s team, in coordination with the National Fraud Investigation Office (ONIF) and Equipo Económico, designed a licensing structure that required companies to retroactively settle tax debts before being granted operational approval.
Foreign companies eager to enter the Spanish market under the new law were allegedly confronted with unexpected demands to pay taxes retroactively, even though the law did not contain a retroactivity clause.
Cristóbal Montoro
While no specific foreign companies have been named as targets, investigators have pointed out that these measures created a competitive disadvantage for international operators.
According to Spanish outlet La Sexta, then-Finance Minister Cristóbal Montoro warned that the launch of Spain’s regulated online gambling market would be suspended unless foreign operators agreed to pay between €150m and €200m in retroactive taxes.
The beneficiary appears to be Codere SA, Spain’s heritage gambling group, which reportedly paid €679,000 to Equipo Económico between 2008 and 2012. At the time, Rafael Catalá served as Secretary to Codere’s Board, underscoring the close alignment between regulatory decisions and private sector interests.
At the time of the regulatory reform, Codere SA was undergoing a major corporate restructuring and actively seeking financial refinancing with its bondholders due to excessive debt levels, threatening its existence.
Though the spotlight is on online gambling, the Court of Tarragona has been instructed to review contracts awarded to Equipo Económico in other regulated sectors. Investigators are particularly focused on deals in the gas and energy industries, where media reports allege that Montoro may have ordered an 85% reduction in tax charges for clients of his former firm.
Wider concerns have been raised that regulatory discrepancies in the gambling sector may reflect a broader pattern of manipulation involving legislative influence, tax evasion and preferential treatment for politically connected companies.
The judgement by the Court of Tarragona could pave the way for foreign licences to seek compensation from the Spanish state for having been subjected to discriminatory tax treatment.
Furthermore, affected/rejected businesses could pursue claims on the grounds that Spain’s actions constituted an obstruction of EU single market competitive principles and breached European law.
The case continues to develop, with judicial authorities, anti-corruption units, and financial regulators working to piece together the extent of coordination between Montoro, Codere, and Equipo Económico.
In previous remarks, Montoro dismissed the allegations, claiming they were politically motivated attempts to undermine his time in office and asserting that the reporting was inaccurate.
As of now, Codere has not made any official public statement directly addressing the allegations related to the Mossos d’Esquadra investigation, Equipo Económico, or its relationship with Montoro. Rafael Catalá no longer holds an executive or board-level position at Codere SA.
The allegations emerge at a particularly sensitive moment for Spain’s gambling sector, as industry incumbents await the Ministry of Consumer Affairs and the Directorate General of Gambling (DGOJ) to publish the final technical specifications of a new Royal Decree aimed to modernise the governance and oversight of gambling activities.
The timing raises concerns about institutional integrity and transparency, just as the regulatory framework is set to undergo its most significant reform in over a decade.
