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How to Transfer a Lottery Administration: Professional Guide 2026

How to Transfer a Lottery Administration: Professional Guide 2026

The lottery and gambling sector in Spain represents a stable and highly regulated market. For those owners who have decided to retire or change their commercial sector, knowing how to transfer a lottery administration is essential to ensure that the operation is carried out within the current legality. Unlike other conventional businesses, the purchase and sale of a lottery administration involves a transfer of ownership that depends on the State Lottery and Gambling Society (SELAE). In this guide, we detail all the legal, tax, and procedural aspects to carry out this transmission with total legal certainty.

Is it possible to sell or transfer a lottery administration in Spain?

Yes, it is completely possible. However, in legal and administrative terms, we are not talking about a traditional purchase and sale, but rather a transfer of ownership of the point of sale. The license belongs to the State, and it is SELAE who grants the right of commercial exploitation to a third party.

Therefore, when an owner decides to sell a lottery administration, what they are really transferring is the right to exploit that license, along with the tangible and intangible assets associated with the business, such as the commercial premises, the customer portfolio, and the technical furniture. This particularity means that the process must be expressly supervised and authorized by the public body before being formalized.

Ignorance of this legal nature is usually one of the biggest obstacles for buyers and sellers. Ensuring regulatory compliance from the very beginning will avoid administrative blockages and possible financial penalties.

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SELAE requirements for the sale of an administration

For the State Lotteries and Gambling to approve the operation, both parties involved must meet a specific profile and present documentation proving their legal and financial suitability.

Legal conditions for the seller

The current holder of the concession must be in a regular situation with the public administrations and with the license-issuing body itself. This implies being up to date with tax obligations with the State Tax Administration Agency (AEAT) and with Social Security.

Likewise, the seller must not have open disciplinary proceedings or pending debts with SELAE derived from the liquidation of the managed draws and games. Any irregularity of this type will immediately paralyze the authorization of the change of ownership. It is essential to carry out an internal audit of the state of the concession before putting it on the market.

Requirements that the buyer must meet

The future owner faces exhaustive scrutiny. To acquire the administration, the natural or legal person must have Spanish nationality or nationality from a European Union member country. In addition, it is essential to present a clean criminal record certificate, demonstrating that they have not been convicted of crimes of forgery, against property, or against the Public Treasury.

Financially, the buyer must provide guarantees of economic solvency. SELAE requires the establishment of a deposit or bank guarantee to ensure the payment of weekly collections. A firm commitment to maintain commercial exclusivity is also required, as the premises where the activity is carried out cannot market other products or services unrelated to State Lotteries and Gambling without prior authorization.

Finally, the acquirer assumes the subrogation of the personnel employed in the business, respecting their labor rights and seniority, in accordance with current regulations.

How to sell a lottery administration step by step

The transmission process of these types of businesses requires meticulous planning. Skipping phases or drafting generic contracts without taking into account the specific regulations of the sector usually leads to frustrated operations.

1. Valuation of the administration and price setting

The first step in transferring a lottery administration is to determine its true market value. Unlike other businesses, the price is not based solely on inventory or location, but on the net commissions generated by sales of the different games and draws in recent fiscal years.

Gross annual billing (commissions received for the sale of tenths, Primitiva, Euromillions, etc.) is the key indicator. Normally, the sale price ranges between two and three and a half times the value of the annual net commissions, also depending on factors such as demonstrable profitability, the cost of renting the premises, and the modernization of security facilities.

2. Signing the earnest money contract

Once an economic agreement has been reached between buyer and seller, a conditional earnest money contract must be formalized. This document is of vital importance, as it secures the commercial operation while awaiting the administrative resolution from the State.

The contract must clearly stipulate that the sale of the lottery administration is conditional upon obtaining definitive authorization from SELAE. In this act, the buyer delivers a financial amount as a deposit, which will be legally shielded in case the public body denies the transfer for reasons beyond the parties' control.

3. Requesting authorization from State Lotteries and Gambling

With the earnest money contract signed, the bureaucratic process begins. Both parties must submit a complete dossier to the commercial delegation of SELAE corresponding to their province.

This dossier includes the formal request for a change of ownership, the buyer's identification and solvency documentation, the seller's certificates of being up to date with payments, and the plans and lease or ownership contracts for the commercial premises. The public administration has a period that usually ranges from two to six months to analyze the viability of the concession and issue a favorable resolution.

4. Signing before a notary and definitive change of ownership

If the resolution is positive, the last step is to make the agreement public. Buyer and seller must go to the notary's office to sign the deed of assignment of the license and the transfer of the business.

At this point, the rest of the agreed amount is settled, and the effective delivery of the keys to the premises takes place. Subsequently, the new owner must register the deed in the corresponding registries and sign the new commercial contract with State Lotteries and Gambling, assuming from that moment all responsibilities for the point of sale.

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Taxation on the transfer: What taxes are paid?

The transfer of an autonomous economic unit has significant tax implications for both the party ceding the business and the party acquiring it. Knowing these tax burdens is essential to calculate the true profitability of the operation.

Taxes for the business seller (Personal Income Tax)

The seller must declare the capital gain or loss derived from the transfer in their Personal Income Tax (IRPF). This gain is calculated by subtracting the original acquisition value of the license, updated and deducting the amortizations applied over the years, from the actual sale price.

This amount is taxed in the savings tax base of the IRPF, with tax rates that vary depending on the amount of profit obtained, applying the corresponding progressive brackets established by state and regional tax regulations.

Taxes for the license buyer (Property Transfer Tax)

For the buyer, the acquisition of the business as a whole (license, facilities, furniture) is not subject to Value Added Tax (VAT), as it is considered the transfer of an economic unit capable of functioning autonomously.

However, the transfer of real estate or rights over the commercial premises may be subject to the Property Transfer Tax (ITP) or other local taxes, depending on whether the premises are purchased outright or a pre-existing lease agreement is simply subrogated.

Difference between transferring and relocating a lottery premises

It is common to confuse the transfer of the license with the physical relocation of the establishment. While transferring implies a change in the legal ownership of the business (change of owner), relocation involves moving the physical location of the administration while maintaining the same owner.

SELAE is extremely restrictive with physical relocations to protect the existing sales network. A relocation requires justifying a substantial improvement in commercial viability and complying with strict minimum distances (generally 250 meters) with respect to other nearby administrations. Often, selling the business means keeping it in its original location or in the same neighborhood, as a change of premises adds an extra layer of complexity to the approval process.

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Frequently Asked Questions (FAQs) about transferring lotteries

Can it be transferred to a family member?

Indeed, transferring to family members is one of the most common routes, either through inter vivos or mortis causa transmissions. In many cases, these types of operations have regional tax bonuses and a slightly more agile bureaucratic process, although the new owner must still prove their legal and financial suitability to SELAE.

How long does the change of ownership process take?

The processing time does not depend exclusively on the parties, but on the response times of the public administration. As a general rule, from the moment the complete dossier is submitted until the official authorization is obtained and signed at the notary, the process usually takes between three and six months.

Are the premises transferred or only the SELAE license?

It depends on the nature of the property. What the State authorizes is the transfer of the commercial exploitation license. If the seller owns the property, they can sell it along with the license or rent it to the new owner. If the seller is renting, the buyer must subrogate to the existing lease agreement or renegotiate a new one with the owner of the premises.

Is there a minimum ownership time to be able to sell the lottery license?

The regulations have evolved over time. Historically, grace periods were required to avoid speculation with public concessions. Currently, the conditions vary depending on the type of commercial contract signed with SELAE, but in new concessions, a minimum period of exploitation is usually required before the rights can be transferred to a third party, except in justified cases of force majeure.

Is it necessary to set up a company to be able to transfer?

It is not a mandatory requirement. Licenses can be held by both natural persons (freelancers) and legal persons (commercial companies). Many buyers decide to set up a Limited Liability Company to manage the business and limit personal patrimonial responsibility, but the transfer process is viable in both modalities as long as the required guarantees are met.

Publish your ad on Traspasso and find the ideal buyer

Carrying out the sale of a regulated business requires finding the right profile: an entrepreneur or investor with the necessary solvency to meet the State's regulatory demands. The key to success lies in quickly connecting your offer with the qualified market demand.

At Traspasso, we are the leading specialized platform for buying and selling businesses in Spain. We offer you the perfect showcase to give maximum visibility to your lottery administration and connect directly with real buyers looking to invest in a secure and profitable sector. Simplify the process, save time looking for interested parties, and publish your ad with us so that the transfer of your business is a complete success.

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