Spanish online gambling market: regulatory uncertainty
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13 Aug 2024 •
Reading time: 2 minutes The Spanish online gambling market is experiencing a period of regulatory uncertainty. While the recent decision by the Spanish Supreme Court to ease advertising restrictions has provided temporary relief to operators, the sector is expecting a rapid return to stricter regulation.
End of the advertising ban
Royal Decree 958/2020 had introduced drastic restrictions on advertising for online games, limiting television and radio broadcasts to the 1am to 5am time slots and restricting promotional targeting to existing subscribers on social networks. These measures, heavily criticised by the industry, were seen as favoring unlicensed operators, who are subject to fewer constraints.
Turnaround
In April, the Spanish Supreme Court overturned several advertising restrictions imposed on the sector. Operators have regained the ability to reach new players, use celebrity partnerships, and run ads on video platforms like YouTube. Social media ad targeting has also been expanded to those aged 18 and over, marking a significant shift from the total ban that was put in place in November 2020.
A short-lived reprieve?
Despite the reprieve, Aviv Sher of Codere Online predicts a return to strict advertising restrictions in the coming year. He says the Supreme Court has not changed its opinion on the matter, and Parliament could quickly come back with a new law to reinstate the previous ban. Given this uncertainty, Codere Online is favouring short-term advertising contracts to make the most of the current situation.
Increasingly restrictive rules
Aviv Sher also highlights the increasingly restrictive nature of Spanish regulations. The proliferation of rules imposes a heavy administrative and technical burden on operators. Despite these difficulties, Codere Online recorded a 39% growth in its turnover in the second quarter, driven in particular by the good Spanish sports results. The Spanish online gaming market is therefore still in a state of expectation. While the recent decision of the Supreme Court has brought a breath of fresh air to operators, the prospect of a rapid return to strict regulation looms over the sector.