The frequency of updates around betting and gaming regulation from Spain’s government shows continuing political frustration with the industry and its visibility, writes SBC News’ Editor, Ted Orme-Claye.
The rapid growth of the Spanish betting sector over the past year has predictably led to political consequences for the industry in a country with some of the strictest attitudes to gambling in Western Europe.
Last week, Spain’s Ministry of Social Rights, Consumption, and the 2030 Agenda (MAS) announced a new requirement for all licensed gambling companies in Spain, that firms must display a warning about the risks of online gambling.
The three warnings operators will be required to display are that ‘gambling addiction is a risk of gambling’, ‘the probability of being a losing gambler is 75%’, and that ‘losses for all gamblers are four times greater than their winnings’.
This holds gambling to a similar standard to tobacco, where products must contain warnings about the health risks of smoking. The government has also directly made this comparison, citing research published in the Journal of Gambling Studies which concluded that messages around gambling harm are lacking in comparison to alcohol and tobacco.
This mirrors calls for similar measures in the UK, where politicians are arguing for gambling to be treated as a public health issue in the same way smoking is – the difference being in Spain it is becoming policy.
To enforce the new requirements, the Ministry plans to cite Royal Decree 958/2020, which in 2020 adopted some of the strictest betting marketing regulations seen in Western Europe.
The industry can also expect a resolution followed by two annexes explaining the regulations, which the Ministry stated on Wednesday 2 October would be released by the Directorate General for the Regulation of Gambling (DGOJ) ‘in the coming days’.
Why shouldn’t we be surprised?
Spain’s politicians have been showing frustration with gambling for some time. This frustration will never translate into an outright ban, a practically unheard of development in modern European betting, but it will lead to further restrictions.
Of particular concern to the government is the impact gambling is having on younger Spaniards. The MAS has specifically cited data from the government’s latest Online Gamer Profile report which found that the number of gamblers aged between 18-25 had risen 28% from last year, with this demographic segment now accounting for 34.25% of the market.
Pablo Bustinduy, Minister of Social Rights, Consumption, and the 2030 Agenda, put it bluntly. He said: “There are unscrupulous economic operators who have no qualms about taking advantage of those in greatest need.”
Despite its restrictions, Spain remains one of Europe’s most valuable gambling markets, with the latest government figures showing steady growth for the sector over the past year. An MAS update in August stated that the number of Spanish gamblers rose by 21.63% from the year previous, while the number of accounts was up 23.48%.
While this may be good for operators’ coffers, it seems to risk becoming a vicious circle. Why? Because the increase in account numbers, and therefore operator revenues, has been attributed to a relaxation in betting promotion regulations in 2024.
A Supreme Court ruling allowed operators to bring back certain marketing techniques, in particular bonuses. Having taken the recent figures into account, the government is now angling to reinstate the ban.
Gambling, smoking, public health
On top of this, the comparisons between gambling and tobacco are also indicative of the growing trend of governments increasingly viewing gambling as a public health issue rather than a business one.
This has particularly been the case in the UK, where various MPs have been calling for gambling to be treated this way. Although the industry remains under the remit of the Department for Culture, Media and Sport (DCMS), it appears that the government is becoming more receptive to the argument.
Comparisons between gambling and alcohol and tobacco are nothing new, and this shouldn’t be a surprise to anyone – all three are products associated with societal impacts and have the potential to lead to harm, including addiction and health consequences.
The industry should expect Spain’s government to remain fixated on gambling harms and for potentially more restrictions to be introduced. The same should also be expected of other key European markets, which although may not be as strict as Spain, are no strangers to political concern and frustration around this industry.
The frequency of updates around betting and gaming regulation from Spain’s government shows continuing political frustration with the industry and its visibility, writes SBC News’ Editor, Ted Orme-Claye. The rapid growth of the Spanish betting sector over the past year has predictably led to political consequences for the industry in a country with some of …