Spain’s online gambling sector has emerged as one of Europe’s most mature and fast-growing markets, yet it finds itself at a delicate crossroads. On one hand, operators are benefiting from a stable tax regime and growing player engagement. On the other, an increasingly stringent regulatory framework, coupled with a persistent unregulated market, presents complex challenges for businesses seeking both compliance and competitiveness.
Despite the Supreme Court’s flip flopping over marketing restrictions, the market has rebounded strongly since the pandemic, according to Eduardo Morales Hermo, senior advisor at Ficom Leisure. “This trend strengthened further from the end of 2023 onwards. Casino is clearly the main growth driver, with slots leading player preferences, followed by live roulette.”
Sports betting, while popular, is less lucrative due to intense competition, he notes. Operators with established land-based footprints—such as Sportium, Codere, Luckia, Casino Gran Madrid, Casino Barcelona, and Orenes Group—have leveraged their physical presence to maintain growth online. Morales Hermo adds that “despite the advertising, sponsorship and other restrictions introduced in 2020, operators have managed to maintain growth.”
Market-friendly gambling tax regime
The market’s stability is reinforced by Spain’s tax framework, which is not expected to change in the short-term. “Spain has amended the tax regime for gambling in a manner favourable to operators,” Patricia Lalanda Ordóñez, partner at Socio, explains. This included the government implementing significant tax incentives in Morocco-based autonomous cities Melilla and Ceuta in 2018. “The objective of this measure is to incentivise gambling operators to establish or maintain their operations in these Spanish territories,” Lalanda Ordóñez adds.
Licensed operators on the Iberian mainland are subject to a 20% tax on gross gaming revenue (GGR), while those genuinely established in Ceuta and Melilla benefit from a reduced 10% rate – a measure designed to incentivise operators to locate there.
Lalanda Ordóñez also stresses the broader economic rationale, noting the government is investing in technology innovation, including gaming: “The current strategic focus, generally speaking, is attracting investment in innovation, not only within the gambling industry but across all technology-driven sectors, underpinned by a firm commitment to providing robust legal certainty to foster a stable and predictable environment for growth.”
Alberto Rodríguez, partner at Bird & Bird, echoes this point: “The stable taxes with tax reductions in certain regions will enable regulated operators to increase their investments, contribute to strengthening the market and, thus, increase government revenue while still lowering tax rates.” In other words, Spain’s combination of predictable taxation and a large regulated market remains a strong draw for operators.
Tobacco-style warnings have a complex impact
While taxes remain predictable, Spain’s regulatory environment is becoming more intensive. JDigital, the leading Spanish online gambling trade association representing operators’ interests, has been vocal about the challenges. Their 2024–2025 report emphasised that unlicensed platforms pose a serious threat: in 2024, unregulated online gambling amounted to €231 million, or 16% of the regulated market value. JDigital warns that “the [transition] of users [to the black market], especially among younger age groups, combined with widespread ignorance about the unregulated market, obliges [the policy makers] to address the possible measures and approaches that contribute to strengthening legal and regulated gambling and fighting against the proliferation of the unregulated market.”
The most controversial recent regulatory move was Spain’s shift from generic “play responsibly” messaging to explicit, tobacco-style addiction warnings. These warnings must detail statistical loss probabilities and addiction risks, creating prominent visual reminders across online products and digital advertising.
Juan Carlos Guerrero, partner at law firm Ecija, warns that the new tobacco-style warnings are likely to have a complex impact on the market. For casual players, the explicit messages on risk could create more friction at the point of play, reducing impulse participation and potentially lowering conversion in some segments.
Shift in brand perception
At the same time, regulated operators may see a shift in brand perception: while their platforms could appear more “official” and safety-conscious, they may also come across as stigmatised or overly restricted to certain users. Player acquisition, Guerrero notes, is likely to become more challenging, particularly when these warnings are paired with strict limits on bonuses and endorsements. “The public-health intent is clear,” he says. “But commercially it tends to reduce marketing efficiency and pushes operators toward retention, CRM, and product-led differentiation rather than headline acquisition.”
Patricia Lalanda Ordóñez also highlights the risk of unintended consequences: “Consumers will naturally gravitate toward environments that are easier to use, more competitive and less restrictive. Excessive warnings and constraints can drive demand toward less regulated or offshore markets.”
She says that every additional restriction imposed on licensed operators strengthens the competitive advantage of unregulated offerings’ well-intentioned policies may unintentionally undermine channelisation and push players toward less-safe alternatives.
Lack of dialogue with the industry
Advertising has long been a point of conflict in Spain. In April 2024, the Supreme Court annulled several provisions of Royal Decree 958/2020, including the ban on celebrity endorsements and restrictions on promoting welcome bonuses. Carlos Guerrero characterises the current situation as a persistent relationship issue:
“The industry association continues to argue that measures are being introduced with insufficient prior consultation”. He adds that JDigital’s public positioning in late 2025 focused heavily on restoring ‘effective dialogue’ with the Spanish gambling regulator (DGOJ) and reframing policy around protecting consumers while still keeping regulated operators attractive versus illegal sites.
Despite the ruling, the Directorate General for the DGOJ has repeatedly attempted to reinstate the annulled articles. “The DGOJ has not opened any meaningful dialogue with the industry. Their objective appears to be reinstating the annulled restrictions without negotiation” Patricia Lalanda Ordóñez explains.
This regulatory uncertainty complicates multi-jurisdictional marketing strategies. “A one-size-fits-all global marketing campaign is not feasible because each jurisdiction has its own regulatory nuances and specific local legislation that must be respected,” Guerrero explains.
Operators are responding with modular campaigns, heavier reliance on CRM and owned channels, and tighter geo-targeting controls. Morales Hermo adds: “Operators must continue adapting their marketing strategies to the specific regulatory requirements of each jurisdiction.”
Technology and risk management
Spain is also moving toward joint deposit limits and a risk-behavior detection algorithm, designed to identify potentially vulnerable players. According to one industry advisor: “A key challenge lies in the technical and regulatory adaptation required for the integration of the algorithm, which presents considerable operational complexity. This will be met through close collaboration between operators and the regulator to ensure a clear and secure implementation.”
Simultaneously, licensed operators must remain competitive against unregulated platforms. Rodríguez notes that “the illegal market still holds a significant market share, posing a constant threat to the licensed industry. Addressing this, he says, requires a dual approach where operators must continue to offer a safe and attractive alternative, while authorities must intensify enforcement actions against unlicensed operators.
Spain as a reference point
Spain’s regulatory approach may influence other jurisdictions. Guerrero observes: “Spain’s policy is certainly being viewed as an example, not just within the EU but also in Latin America. As a mature gaming jurisdiction, Spain holds a dual responsibility: to shape its domestic market and to set a precedent for others.”
However, legal challenges have reinforced that any such measures must respect proportionality and fundamental legal principles, underscoring the difficulty of balancing public health, consumer protection, and market vitality.
Spain’s iGaming market offers both opportunities and pitfalls. Strong tax incentives and growing player engagement create a fertile environment for investment and innovation. Yet, operators face complex challenges: increasingly player protection measures, marketing restrictions, and the constant threat from unregulated platforms.
The consensus among industry stakeholders is clear: successful navigation of Spain’s market depends on effective dialogue between regulators and operators, robust enforcement against unlicensed activity, and careful calibration of marketing and consumer protection measures. As Rodríguez puts it: “The lack of dialogue between JDigital and the DGOJ makes it impossible to properly address regulatory challenges or to collaboratively find balanced solutions for the industry.”
If this dialogue can be restored and regulatory implementation balanced, Spain’s market could continue to thrive as one of Europe’s most innovative and well-regulated iGaming jurisdictions. Failure to do so, however, risks undermining the very protections regulators aim to achieve.
Spain’s iGaming market is thriving, but legal experts warn the DGOJ must replair its relationship with the sector to move forward.