The way Spanish betting operators promote products to customers has once again fallen under the regulatory spotlight as the government takes aim at welcome bonuses.
Authorities are alarmed at some of the data seen in two recent reports, published separately by the Ministry of Social Rights, Consumption and the 2030 Agenda (MAS) and the DGOJ, Spain’s gambling regulator.
The renewed use of welcome bonuses by Spanish betting firms is of particular concern for the MAS, which has partly attributed this practice to a substantial increase in the number of Spanish bettors by 21.63% and the number of accounts by 23.48% in 2024.
Welcome bonuses were banned in Spain in 2020, part of a wider clampdown on marketing and advertising by Spanish betting operators under Royal Decree 9587/2000, but made a return in April 2024 after a Supreme Court ruling annulled elements of this decree.
Spanish marketing under pressure again?
MAS believes it is no coincidence that the number of Spanish bettors increased sharply following the return of welcome bonuses. Pablo Bustinduy, the Minister who heads up MAS, has subsequently proposed an amendment to ban promotional incentives.
If approved, the ban will cement Spain as one of the toughest Western European countries for betting companies from a marketing perspective, with a total ban on betting sponsorships in force since the 2020 Royal Decree.
Spain stands out alongside Italy, the Netherlands and Belgium for maintaining a strict ban on these sponsorships, although the Supreme Court did also lift bans on social media advertisements and the use of athletes and celebrities in campaigns in its April 2024 ruling.
MAS has cited DGOJ data showing that €526m was invested in marketing campaigns by Spanish betting firms during 2024. This was divided among promotions (€261m), advertising (€203m), membership expenses (€56m) and sponsorships (€5.45m)
Spanish betting reaping rewards
Regardless of marketing restrictions, Spanish betting still stands out as a highly valuable market for local and domestic firms. The country hosts a number of prominent companies including local leaders Codere, Retabet, Luckia and CIRSA, as well as notable international companies like bet365 and Entain-owned Bwin.
MAS states that the market is very profitable, claiming that gaming firms recorded €8bn in profits in 2024, with online gaming alone recording €1.454bn in profits, driven by the 21% increase in player numbers and a 7% increase in wagers.
Segment-by-segment, Casino gaming was the largest with €730.7m in profits, followed by sports betting at €608.8m, poker at €100m and bingo at €14.94m. Sports betting profits saw the sharpest growth of 23.8%, followed by casino (16.96%) and online bingo (3.96%), although online poker profits dropped 4.99%.
The data shows that Spain remains a lucrative market, though the government may not see this as an entirely positive thing despite the tax contribution. As in other markets, like those mentioned above as well as the UK, many politicians have a lot of concerns about gambling’s societal impact.
As a result, Spain may be set to see further marketing restrictions once again. The government itself has not been escaping controversy lately, however, with a former Finance Minister facing allegations of favouring domestic companies over international competitors.
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The way Spanish betting operators promote products to customers has once again fallen under the regulatory spotlight as the government takes aim at welcome bonuses. Authorities are alarmed at some of the data seen in two recent reports, published separately by the Ministry of Social Rights, Consumption and the 2030 Agenda (MAS) and the DGOJ, …