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Spain Considers Tougher Gambling Advertising Restrictions

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2024-05-02

Spain Considers Tougher Gambling Advertising Restrictions

Spain Considers Tougher Gambling Advertising Restrictions

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The Spanish Ministry of Consumer Affairs has recently announced its intention to prioritize the restoration of gambling advertising restrictions in accordance with the Royal Decree on Advertising. Pablo Bustinduy, Spain’s new Minister of Social Rights and Consumer Affairs, highlighted this plan during a media address on the current framework of federal rules governing gambling advertising.

Confusion has arisen in the Spanish media due to the Supreme Court’s recent annulment of specific articles of the Royal Decree on Advertising. This has prompted the Ministry of Consumer Affairs to take action and reinstate and strengthen restrictions on gambling advertising through legislative means.

Since 2020, the Royal Decree has limited gambling advertising on all Spanish media platforms to the early morning hours of 1 to 5 am. In 2022, further restrictions were introduced, including a blanket ban on all forms of gambling sponsorships in professional sports, with the exception of state lotteries. The Decree also prohibited the marketing of bonuses and the use of athlete and celebrity endorsements, including social media influencers.

Jdigital, Spain’s online gambling trade association, had challenged the Ministry of Consumer Affairs regarding the implementation of the Decree and its restrictions as federal law. In April, the Supreme Court ruled in favor of Jdigital, stating that the Ministry had bypassed constitutional procedures in implementing certain Decree restrictions as federal laws.

The Supreme Court’s judgment annulled several articles of the Decree, including those related to promotional advertising incentives targeting new clients (bonuses) and the use of celebrities and athletes in gambling advertisements. Additionally, the Court canceled the article that broadly banned the commercial communication of gambling offers through online platforms.

While accepting the Supreme Court’s decision, Minister Bustinduy emphasized that the Ministry of Consumer Affairs remains committed to restoring stricter restrictions on gambling advertising. Efforts will be focused on limiting advertising on the internet and social media, curbing the use of celebrities or influencers in gambling campaigns, and regulating welcome bonuses that predominantly target young individuals.

In addition to gambling advertising, the Ministry aims to introduce new laws to restrict the promotion of ‘loot boxes’ and implement ID verification requirements for video games, which were not included in the original Decree.

Minister Bustinduy also reiterated the Ministry’s agenda to overhaul Spanish gambling laws. One of the key initiatives in this regard is the implementation of the Royal Decree on Responsible Gaming Environments, which aims to establish the most stringent surveillance of operators and market activities in Europe by 2024. This will include the creation of a centralized player registry and mandatory record-keeping of ‘risk profiles’ for customers under the age of 25.

The Directorate General of Gambling Regulation (DGOJ) is currently consulting on the technical requirements of the Decree and whether Spanish authorities can effectively supervise gambling activities and consumer engagements. Doubts have been raised regarding the feasibility of implementing the Decree’s stringent supervision measures.

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