Spain Shows Europe How to Legislate Online Gambling Correctly

Many online gambling regulatory bodies have begun with great intentions and seemingly solid plans, only to fall short on some key metric along the way.

The most common industry criticisms centre around limiting player choice, not making promotions and incentives appealing enough, instituting arbitrary limits on losses and gameplay that contradict the data, while simultaneously over-taxing licensed operators.

The outcome of these is always the same: a reduction in market channelisation, a loss of interest in operator licenses, and an increase in black market activity. This makes licensed casinos and sports books less valuable to the country while increasing the risk of gambling harms.

Quote

"Join the GamblersPick Community to stay on top of the latest online casino news, welcome bonuses, and regulatory updates."

 Spain Leads the Charge in Balanced Governance

One of the markets which has emerged as a shining star in the crown of the legal gambling industry is Spain.

With more than a decade of online gambling regulation under its belt, the Directorate General for the Regulation of Gambling (DGOJ) has proved that a guiding hand, rather than a harsh one, can ensure that both the country’s players and its business partners can thrive.

The proof is in the pudding, as the saying goes and in 2024, Spanish iGaming revenues hit a record high of €1.45 billion. This result represents an annualised year-on-year growth of nearly 18%, while maintaining an incredibly low risk ratio of 1.4%.

Spain’s Long-term Plan for a Stable Marketplace

 These incredible results did not come about by accident. Where its peers have responded to market fluctuations with knee-jerk reactions, many of which have needed to be walked back, Spain has remained steadfast.

The country’s regulators took their time in formulating their Gambling Act, only launching it in 2012, seven years after the UK. Regardless of macroeconomic market movements, they have stood by the Gambling Act, choosing to enforce it and make minor adjustments over time rather than implementing sweeping changes.

This has led to an incredibly stable gambling sector, which has gained the trust of players and operators.

Quote

"Discover trusted locally licensed online casinos, and claim a generous welcome bonus today!"

Financial Focus Does Not Mean Prioritising Money

The government realised the importance of money in securing the industry. They ensured that operators can afford investing in the product, marketing, player safety, and turn a decent profit, while generating fantastic returns for the country.

This has been achieved by not imposing harsh restrictions on players' ability to deposit, which ensures long-term financial stability for all parties. The regional tax rate has been set at 20% of gross gaming revenue (GGR).

This tax level enables the country to generate an income that can be allocated towards much-needed community and government programs, while allowing the casinos to generate sufficient profit to continue operating in Spain.

 Taking a Progressive View on New Technologies

As with anything you want to nurture, setting boundaries is key to its growth and development. Spain has adopted this model by creating a safe and secure marketplace, while remaining open to adopting innovative new technologies that can enhance the player experience, protect its citizens, and support the growth of the business side of the gambling industry.

This has seen the DGOJ invest in an AI-driven auditing program, which tracks 60 online gambling risk indicators, as part of the expansion of the Royal Decree for Safer Gambling Environments (2023).

DGOJ President Mikel Arana called the project “a regulatory priority” and integral to the gambling body’s drive to build “the most robust technological foundation possible — one that can serve the market long-term”.