Let’s take a look at the latest statistics on the online gambling market in Spain:
Online gambling revenues are expected to reach $1.97 billion in 2024.
An annual growth rate (CAGR 2024-2029) of 4.96% is anticipated, leading to a projected market volume of $2.51 billion by 2029.
The projected market volume for online betting is $0.94 billion in 2024.
The number of users is expected to reach 4 million by 2029.
The online gambling market in Spain looks promising. The only question that remains is how the regulation of gambling in Spain is evolving and how to stay within the law when promoting iGaming brands.
Are Online Casinos Legal in Spain?
Online gambling is legal in Spain. The regulation of this sector is governed by Law 13/2011 of May 27, 2011, which sets the rules for online casinos, sports betting, and other forms of gambling.
Gambling operators must obtain licenses from the Spanish Gambling Commission (DGOJ) and comply with requirements regarding player safety and the protection of minors from gambling influence. Legal operators are also required to pay taxes on their revenues.
Let’s take a closer look at the regulations for Spanish online casinos and betting platforms.
Regulated and Unregulated Markets
In Spain, the iGaming market is divided into regulated and unregulated segments, and these two sectors have significant differences.
The regulated iGaming market consists of legal operators who are required to obtain licenses from the Spanish Gambling Commission (DGOJ).
Regulated platforms must provide clear information about their operations, use tools to protect user data, and implement mechanisms to prevent gambling from becoming popular among minors.
The unregulated iGaming market includes operators who operate outside the legal framework of Spain. These companies do not have licenses and are not subject to local laws, resulting in a lack of oversight by authorities. Players on such platforms risk encountering low levels of security and a lack of personal data protection.
Thus, the regulated market ensures the protection of players’ interests and compliance with laws, while the unregulated market involves risks associated with the lack of oversight and legal protection for players.
What Regulations Exist for Online Gambling in Spain?
Online gambling in Spain is regulated by Law 13/2011 of May 27, 2011. This law applies to gambling activities offered by both operators within Spain and those targeting the Spanish market.
There are three main types of licenses in Spain: betting, contests, and other games. Additionally, separate licenses can be issued for online gambling, covering specific types of games such as bingo, blackjack, roulette, baccarat, slots, poker, and fixed-odds betting. Games not falling into these categories cannot be offered.
Law 13/2011 has been supplemented by various acts, including Royal Decrees 1613/2011 and 1614/2011, as well as ministerial orders related to each category of games. The Gambling Commission (DGOJ) issues licenses following a public announcement of the application process.
The main requirements for licensees include:
Technical standards. Operators must comply with technical requirements established by Royal Decree 1613/2011. These standards cover the reliability and security of software, the fairness of games, and data protection.
Responsible gambling. Operators are required to provide tools for self-control, limit gaming time, and prevent gambling addiction.
Minimum age. Players must be over 18 years old. Operators are required to verify users’ ages and prevent minors from accessing gambling activities.
Tax payments. Licensed operators are required to pay taxes on gambling revenues in accordance with Spanish law.
Regular reporting and audits. Operators must submit regular reports on their activities and financial results to the DGOJ. They are also subject to regular audits to ensure compliance with all requirements and standards.
The Constitution of Spain divides regulatory powers and other issues between the central government and the autonomous regions (Comunidades Autónomas). Next, we will discuss the differences in online gambling regulations across regions in Spain.
Regional Differences in iGaming Regulation in Spain
Spain consists of several autonomous regions, but all of these regions are subject to the general Spanish legislation regarding the regulation of the iGaming sector. Regions cannot enact laws that contradict the overall requirements. However, some regions have their own licensing authorities. For example:
Catalonia. Catalonia has its own gambling regulatory authority, the Comissió de Control de Joc. It is responsible for licensing and overseeing gambling activities within the region. Otherwise, Catalonia adheres to the general requirements for Spain.
Basque Country. In the Basque Country, the Eusko Jaurlaritzaren Jokoaren Araubidea is the body responsible for regulating gambling in the region and issuing licenses to local operators.
Madrid. In the Autonomous Community of Madrid, gambling regulation is handled by the local government, specifically the Department of the Interior, Justice, and Security (Consejería de Interior, Justicia y Seguridad) and the General Directorate of Gambling (Dirección General de Seguridad, Protección Civil y Formación).
Andalusia. This region has its own regulatory body, the Comisión de Juego de Andalucía, which monitors compliance with gambling laws at the local level.
In general, the differences in iGaming regulation across regions primarily relate to the licensing process.
Gambling Advertising in Spain
Spain's Royal Decree 958/2020 came into effect in November 2020. The decree's requirements aimed to reduce the impact of gambling advertising on minors in Spain.
The measures prompted a negative reaction from the industry, and the Spanish Digital Gaming Association (Jdigital) filed an appeal against the Royal Decree. Upon reviewing the law, the Supreme Court annulled several measures outlined in the Royal Decree, partially upholding the appeal.
Now, Spanish operators are allowed to show their ads to players who have created an account on a gambling platform less than 30 days ago. Operators can also advertise in establishments intended for the sale of lottery tickets and accessible to the public.
Article 15, which prohibited the appearance of celebrities in advertising, was also annulled. Previously, both real and fictional persons of "public significance and notoriety" were banned from appearing in commercial messages.
The ban on gambling advertising on video-sharing platforms (such as YouTube) was also lifted.
However, Article 12, which restricts sports sponsorship for iGaming brands, remains in effect. Operators are still prohibited from sponsoring sports events, broadcasts, or sports venues.
Risks and Consequences of Non-Compliance
Here are the main risks and consequences of violating iGaming sector regulations for operators and affiliates:
Fines. Violations of gambling advertising requirements can result in fines, with amounts varying depending on the severity of the violation.
Advertising suspension. Operators may be prohibited from running advertising campaigns until violations are corrected.
Lawsuits. Violations of advertising standards may lead to legal action from regulatory bodies or third parties.
License revocation. Breaching licensing conditions can result in the annulment or suspension of an iGaming license.
Adhering to legal requirements will help avoid serious consequences.
How to Stay Within the Law in the iGaming Market?
Here are a few simple rules to help you stay within the law when working with iGaming in Spain:
Provide clear and accurate information about the brands you promote. Ensure that your advertising materials are not misleading and honestly disclose the terms of the offer.
Do not target minors, and avoid advertising methods that may attract users under 18 years old.
Regularly check that your campaigns comply with the latest Spanish legal requirements.
Conclusion
The online gambling market in Spain has a promising future, as indicated by positive current trends.
The online casino segment has shown significant growth of 17%. Online betting has demonstrated impressive growth of 31%, accounting for 42.9% of the total Gross Gaming Revenue (GGR).
In the first quarter of 2024, several significant events occurred in the Spanish gambling market, contributing to GGR growth:
Major sports events were held.
New gaming platforms were introduced, and existing ones were improved.
Active advertising campaigns and bonus programs were offered by Spanish online casinos and betting platforms.
Further growth in GGR and player engagement can be expected in the future, strengthening Spain's position in the global iGaming market.
Therefore, affiliates should pay attention to this country. The regulation of the gambling sector is fairly transparent, and to work successfully, webmasters need only to comply with the advertising requirements for iGaming brands.
