Spain’s new rules against advertising in gambling have been signed into law by a Royal Decree of 37 articles, four titles, six additional provisions, four transitory provisions, a repeating provision and three final provisions.
The decree, published yesterday, covers the advertising, sponsorship and promotion of online gambling and betting, plus consumer protection and responsible gambling policies. It comes into force today.
The effect is to force highly restrictive and prohibitive measures for advertising and commercial actions of the online gambling business legally operating in Spain.
The much-criticised new law, says Spanish gambling expert Eduardo Morales Hermo, is “without justification and lacking any scientific and statistical support.”
He added: “The government has implemented a series of absolutely unjustifiable measures to favour the transfer of a significant volume of demand for online gambling and betting to operators that have a more competitive offer from offshore territories, lacking licences, guarantees for consumers and lacking any control over compliance, both technological and fiscal and responsible gaming.”
Produced through Spain’s Ministry of Consumer Affairs, the new regulations, said Morales, “will have consequences contrary to the intended objectives - a classic shot in the foot.”
The government, he said, now becomes an ally of online gambling and betting offers from extraterritorial offshore jurisdictions, seriously damaging the competitiveness of the legally authorised operators with licences in force.
Under the new law, audio-visual advertising for online gambling and betting will only be allowed between 1am and 5am at night and the offer of promotional bonuses to attract players is banned.
Operators may only target registered and verified customers and never anyone "at risk." Clubs for different sports activities may not sign sponsorship contracts with online gambling companies that show advertising on shirts or equipment or in the stadia. It is also prohibited that betting advertising should be broadcast on sporting events after hours.
Advertising by mail is banned and by email unless it is with the agreement of the recipient. Autonomous communities (the Spanish provinces) will have influence over any outdoor advertising and on the internet the advertising must be done through web pages of the operators.
Any contracts already signed and in force have a transitional period to end with the conclusion of the current season in August 2021 and a transitional deadline for the prohibition of promotional bonuses currently in force will only run to May 1, 2021. Any advertising campaigns using popular characters with a contract currently in force cannot be broadcast from April 1, 2021.
Social networks also have severe restrictions on advertising and promotions and more parental control is established for the protection of the under-age. Operators must have processes to guarantee that their advertising is not directed at the under-aged.
Said Morales: “The law is imposed upon the legally authorised operators of online gambling and betting in Spain and it has taken them into a situation of helplessness and lack of capacity to compete with the illegal offer from offshore unregulated sites.
"Those sites don’t pay taxes, don’t meet compliance requirements or anti-money-laundering law and don’t protect the consumers, notably the under-age and vulnerable, and Spain is now a favourable scenario for illegal gambling.”
