Spain Sets Governance for Protecting Minors and At-Risk Players

Spain has been attracting much of the headlines in gambling circles of late, thanks to brand-new changes to their regulatory policies for the sake of responsible gambling and the protection of vulnerable players.

An official article from the Ministry of the Presidency clarifies the new legislation along with the intentions of the new bill. It states:

’’This Royal Decree complies with the principles of good regulation referred to in article 129 of Law 39/2015, of October 1, on the Common Administrative Procedure of Public Administrations, in particular the principles of necessity, effectiveness, proportionality, legal certainty, transparency and efficiency. Specifically, this norm pursues a general interest, since it seeks to guarantee the protection of consumers and, more broadly, the guarantee for public health through the prevention of addictive behaviours, the protection of the rights of minors and the minors and the safeguarding of the rights of the participants in the games.’’

However noble the cause, the changes will have a direct impact on how operators are allowed to conduct their business and get their name out there, which is a fundamental element to the success of any brand in any business.

Facts Severe New Protective Measures

There are a series of new restrictions applied to gambling operators, including:

Multimedia Advertising: Only licensed Spanish operators may advertise their services on Spanish TV, radio, and other forms of domestic media, but even this is done under strict provisos. It can only be slotted into broadcasting slots between 1 am and 5 am as these are considered times when minors will not have access to the ads. They must be conducted in a transparent way, under new provisos where no deceptive phrases and information may be shared in the marketing material.
Celebrity Hosting: Spanish operators may not use the services of well-known figures to promote their gambling services, as these icons may be able to influence and negatively affect vulnerable parties.
Promotions and Bonuses: Bonuses and promotions may not be marketed to attract new players to betting sites. This means that Welcome Bonuses are now banned in Spain, which has been a major drawcard for business in the past and is a big proponent for growth in casino circles, internationally.
Sponsorships: Betting companies may no longer brand their logos in public spaces, which will affect sports sponsorships in the country. This will have a severe impact on sports revenues which rely on such funding. Several football teams alone will have to look for new marketing deals because of the law change.

While it would be fair for gambling fans to argue that denying bonuses in the region and to some degree not allowing sponsorships and celebrity endorsements vilifies the hobby there is no denying that the government is doing its best to protect at-risk gamblers.

Hopefully, over time they will come to a compromise which will allow for the pastime to be normalised while still maintaining effective safe gambling standards.

More Details 3 Principles to Guide Them All

While Spain has set out several new standards, there are three guiding principles that the legislation seeks to uphold when it comes to marketing in the industry:

Adverts, promotions, and marketing must provide an adequate perception that gambling poses potential hazardous risks.
All marketing must make the player think first and not lead them to react compulsively.
All marketing material must be 100% honest and true and may not distort the view of what the activities involved in their games imply.

The government is clear on the message that must be conveyed by operators in the future. Article 9.1 of the legislation clearly states:

“Commercial communications from gambling operators will be made with a sense of social responsibility, without undermining or trivializing the complexity of the gambling activity or its potentially harmful effects on people and must respect human dignity and constitutionally rights and freedoms.”

Any operators who do not abide both the spirit and the letter of the law in this regard will find themselves dealing with a regulator who is willing to lose licensees in its efforts to protect its people.

Alert EGBA Concerned Over Heavy Handed Approach

Looking out for the vulnerable and protecting minors is of the utmost importance when running a responsible gambling business, but some of the laws in place now may severely jeopardise the online casino and sports betting industry in the country.

Advertising plays a big part in any business and some of the laws that have been introduced by Spain may be a little too rigid and excessive, especially when it comes to offering new players promotions for joining up and for banning sponsorship branding.

Even the European Gaming Betting Association has vocalised its dismay at the level of restrictions announced, slighting them as “discriminatory against private (gambling) companies” and “not justified by the evidence available”. There are strong calls for the government to reconsider its tactics and push for a more balanced approach that can harmoniously protect the vulnerable and yet promote a thriving gambling sector at the same time.