Gambling Regulation in Spain: Strict Rules Meet Growing Markets

Spain effectively navigates a complex landscape of gambling regulation. The market is dynamic, yet faces significant challenges. New laws and increased government intervention characterize the sector.

The Spanish government is trying to balance market growth with player protection. Both licenses and deposit limits, as well as advertising rules, are being scrutinized more closely.

Numbers and facts

Almost half of Spain's adult population, 49.5 percent, participates in some form of gambling. Of these, 97 percent play in land-based establishments and 6.6 percent online. Lotteries are the most popular form of gambling, with 81 percent. Men prefer online games (73 percent), while 52 percent of women play lotteries exclusively.

The Spanish Gambling Policy Council approved the 2024 Gambling Activity Report. This report serves as an important source of information for authorities and the public. One of the biggest concerns is the unregulated market. In 2024, unregulated online gambling amounted to 231 million euros. This corresponds to 16 percent of the regulated market value. A report from the second quarter of 2023 showed revenue growth of 51.1 percent to 312.6 million euros for the total market. Casinos, slot machines, and live roulette saw increases, while sports betting showed the largest growth year-on-year with 118.9 percent.

Background

The Directorate General for the Regulation of Gambling (DGOJ) plays a central role. It is responsible for the supervision and regulation of online gambling at the national level. Regional authorities, in turn, regulate land-based gambling. Efforts are underway to strengthen cooperation between the different authorities through the development of the Cooper platform.

In recent years, advertising restrictions in Spain have become increasingly stringent. Despite the back and forth of the Supreme Court regarding marketing restrictions, operators have managed to continue growing. This also applies to the strict rules on advertising and sponsoring introduced in 2020. Patricia Lalanda Ordóñez, a partner at Socio, explains:

“Spain has amended the tax regime for gambling in a manner favourable to operators.” - Patricia Lalanda Ordóñez, Partner at Socio

Tax rates for licensed operators on the Spanish mainland are 20 percent of Gross Gaming Revenue (GGR). In the autonomous cities of Melilla and Ceuta, located off the Moroccan coast, operators benefit from a reduced rate of 10 percent. This is a measure to encourage investment in these regions.

The Spanish Gambling Policy Council calls for better regulation of operator licenses. It also wants to introduce joint deposit limits for players. The Council recently analyzed proposals to control online gambling and slot machines. These proposals were approved by the Joint Commission for Addiction Problems. There is concern about the “tobacco-style addiction warnings” intended to warn players about the dangers of gambling.

JDigital, the leading Spanish online gambling trade association, criticizes the government. It argues that the Ministry of Consumer Affairs first regulates and then presents data to justify the legislation. The association also calls for more measures against the illegal gambling market. Over 46,000 blocking orders against illegal gambling sites have been issued by Coljuegos, the Colombian gambling authority, since 2022. This demonstrates the challenges in combating unregulated offerings.

Why it matters for German players

German players who play in GGL-licensed online casinos operate in a clearly defined and strictly regulated environment. Similar to Spain, player protection and the fight against the black market are paramount here. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) introduced a series of measures in Germany. These include a 1 euro per spin betting limit for online slots and a monthly deposit limit of 1,000 euros across all providers.

The central blocking system LUGAS (Cross-State Gambling Supervision System) and the whitelist of the Joint Gambling Authority of the Federal States (GGL) ensure a high standard of protection. They enable effective control and ensure that only reputable and verified providers operate in the market. While Spain struggles with high unregulated market shares, the GGL’s goal is to curb the black market in Germany through an attractive regulated offering. For German players, this means maximum security and transparency, which is not available in many other European countries.

What it means for GGL-licensed casinos

The situation in Spain underscores the importance of a strong regulatory authority like the GGL. The continuous growth of the Spanish market despite strict regulations shows that regulation and economic success can go hand in hand. For casinos aiming for or already holding a German license, this means that transparency, player protection, and adherence to strict rules are key to long-term success.

The fight against the black market and educating players about the risks of illegal offerings are crucial. The DGOJ in Spain strives to develop data-driven policies to protect consumers through studies such as the “Prevalence Study of Gambling on the General Public of Spain.” This approach is also relevant for the GGL to continuously improve the effectiveness of its addiction prevention measures.