Spanish Supreme Court Vetoes Critical Articles on iGaming Ad Regulations

Spain’s apex court has nullified several articles of a royal decree, which will roll back restrictions that affected wagering ads via Spanish media. The Spanish Digital Gaming Association (Jdigital) brought the case to the Supreme Court after the country’s Constitutional Court refused to reverse the changes brought by the 2020 Royal Decree. The Jdigital acronym is derived from the Spanish name of the gambling industry trade body, i.e., Asociación Española de Juego Digital.  

This decision by the top court was welcomed by the plaintiff, Jdigital, who opined that it marked a vital point where industry stakeholders must have meaningful discussions to forge a united path forward. The statement read:

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“The Supreme Court’s decision reinforces Jdigital’s claims that the rules governing online gambling advertising in Spain infringe on the freedom of enterprise and unjustifiably harm the main players, the licensed operators, in this legal and regulated activity…More than a year after Jdigital filed the administrative appeal against the regulation, the association is convinced that it has taken the right steps to preserve and protect the interest of the sectors and the users. The current situation makes it more necessary than ever for the regulator and the Ministry of Consumer Affairs to open a window of dialogue with the online gambling ecosystem to study fair and proportionate legislative ways that are in line with the reality of the sector and do not harm operators and related industries.”

 

For a better perspective of how we got here, let’s go back to the crux of the situation and track things back to this landmark ruling.

The 2020 Royal Decree on Gambling Activities

The Spanish Royal Decree on the Commercial Communications of Gambling Activities came into effect in November 2020. This decree was drawn up by then Spanish Minister for Consumer Affairs Alberto Garzon. The main aim of the restrictions from the Spanish government’s perspective was to reduce the exposure of underage individuals in Spanish society to gambling ads. At the time of enforcement, the Spanish online operator association, Jdigital, was up in arms, calling for fairer and more appropriate laws by the government.

More specifically, the decree banned various gambling sponsorship deals with operators. The communication from then Minister of Consumer Affairs Alberto Garzon fronted that the sponsorship deals running would be allowed to continue until the conclusion of the 2020-2021 Spanish football calendar. Meanwhile, advertising hours on TV and radio on gambling-related matters were significantly scaled down to between 1 am and 5 am. This measure is also applied to YouTube videos. As for other social channels, the decree held that operators would only be allowed to share ads with their followers.

Additional measures entailed the application of age gating to YouTube channels, which was intended to protect minors, who nowadays consume alternative forms of media rather than the traditional ones. Furthermore, the new rules also barred promotional bonuses, although this stipulation left room for operators to target registered and verified users with their unique bonuses.

The Spanish government claimed that the rules were introduced owing to a sharp increase in gambling advertising spending within the country. Similarly, the ordinance was also issued due to an alarming rise in gambling levels, particularly among its young population.

Besides the 2020 Royal Decree, a new wave of measures targeting responsible gambling habits among the youth was passed in March 2023. The newer regulations included defining risk profiles by consumer spending and introducing extra measures for players who have requested safer gambling restrictions on their accounts. The new rules also called for the establishment of prompt communication with at-risk players, among other measures.

Details of the Supreme Court’s Decision

The Spanish Supreme Court’s decision has resulted in the termination of several measures enforced by the Royal Decree. One of those measures relates to Article 13, which previously placed restrictions on targeted ads for new customers. With its revocation, Spanish operators can now market their gambling services to players who’ve owned an account for less than a month. This measure also restricted the sale of lottery games, an aspect that has now been overturned.

Moving on, Article 15, which prevented the usage of celebrities in ads related to gambling, has also been repealed. Celebs, with the particular wording of the decree, citing those with ‘public relevance and notoriety,’ can now appear in public pronouncements by the operators.

The section of the law that prohibited gambling ads on YouTube and other video-sharing platforms has also been annulled, along with the restriction of airing gambling ads to any user above 18 years. Spain’s highest court argued that the reason for overturning many sections of the decree was because they lacked a legal basis.

While the Constitutional Court denied the initial appeal by Jdigital to remove these decrees, the judgment presented an opening that was used to win favor in the Supreme Court. In the then ruling delivered by the judges of the Contentious Administrative Chamber, the judges let it be known that this decree lacked sufficient legal standing. As the Contentious Administrative Chamber saw it, imposing such restrictions would affect “the very essence of commercial advertising,” which is to attract prospective new customers.

Some Parts of The Decree Still Survive

While the Supreme Court’s decision has admittedly done considerable damage to the Royal Decree, parts of it remain. The critical remaining part is Article 12, which still maintains that it is illegal for gambling operators to use branding or advertise for goods or events that may be accessed or viewed by minors. The rule prohibiting operators from sponsoring sporting events or broadcasts on any form of media also remains.

Sponsorship deals that also relate to sports facilities remain banned. Besides Articles 12, 18 to 22, and 24 are the other parts of the decree that survived the chopping board. Nonetheless, it remains to be seen whether the Spanish government will take up the offer by Jdigital to have a sit-down and forge a way forward on matters relating to gambling ads.