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Spain Shutdown Gambling Advertising and Sponsorships
By Shane Addinall Nov 03, 2020 IndustryThe Spanish government has taken a radical step in the name of ‘’responsible gambling’’ by implementing strict new advertising regulations. These are set to interrupt the professional sporting industry and bolster the state-owned monopoly on gambling in tIn a surprising move to bolster the state’s stance on protecting vulnerable players, Spain has moved to outlaw gambling sponsorships in the sports sector and limit gambling advertising by audio-visual means.
This move comes as a shock to the thriving football industry in the country and was met with some disdain from the European Gaming Betting Association (EGBA) who have urged the Spanish government to reconsider their stance.
Change by Royal Decree
A brand-new royal decree came into effect in Spain at the end of October 2020. This decree is set to make life difficult for the professional world of sports in the country, and make it quite tough for independent betting companies to get their brand in the public eye.
The government has cited the increased gambling habits of young adults in the country as the reason for this clampdown. Their statistics show that 40% of adults between the ages of 18 and 25 take part in gambling activities and that the average spend per person in this demographic has spiked by 13% year by year.
The EGBA refutes these stats though, having rebutted against Spain’s decisions by stating that the decisions were unfounded and without statistical support and that the changes simply proved discriminatory towards private companies. A formal response from the EGBA reads:
“The restrictions clearly discriminate against private companies and favour the economic interests of the state-run lotteries, who are by far the country’s leading advertisers in the gambling sector. And while EGBA fully supports responsible advertising, the scope and type of restrictions proposed are not justified by the evidence available.”
While the state-held findings speak of a problem, a study by the University of Madrid shows that the problem gambling rate in the region is one of the lowest in the world, with a minuscule 0.3% ratio.
Does this mean that the youth of Spain are becoming the ‘fall-guys’ for another agenda?
Upcoming Changes
Under these new guidelines, the way betting advertising is conducted will change for good. Some of the changes to the law include:
- Gambling logos are banned from being displayed.
- Betting adverts can only take place for an hour a day between the off-peak hours of 1 am and 5 am.
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Sporting events sponsored by gambling companies are not permitted before 8 pm.
This new legislation provides immediate problems for the sporting world, which receives millions of Euros per year in sponsorship deals from the betting and gambling world.
While the state has given a concession to sports clubs to rectify their deals and seek other funding, the difficulties involved in this are worrisome, especially for the country’s leading sport – football.
Taking a Page Out of the UKGC’s Book?
The UK Gambling Commission (UKGC) is notorious for its strict policies and over the top responsible gambling protocols, but not even they have ventured to interrupt the sporting industry… yet.
If any regulatory body were to have ventured down this road, it would be thought that the UKGC would be first in line. Having said this, rumblings from the House of Lords seemed to have heralded a similar stance on betting sponsorships, yet the UK is a few years off this becoming a reality.
Like La Liga, Premiership football in England is well supported by the gambling industry with half of the Premier League teams and 24 Championship Clubs sponsored by bookmakers. Has this made a direct impact on problem gambling? One would think not.
Statistics show throughout the world in areas where gambling is outright banned, that those who want to gamble will do so. The fact that brands are getting exposure on TV simply directs the revenue into specific coffers.
When viewed from this perspective, it can be seen why the EGBA speaks of discrimination and it is difficult not to side with them. Could this all be a ploy to rid the state lottery of competition and increase the government’s coffers? Only time will tell.
Possible Fall-Out
In La Liga, many top clubs like Valencia, Cadiz, Granada, Sevilla, and Alaves will not have to look to alternative sponsors for years to come. It is an imminent issue that must be remedied immediately to ensure that the industry stabilises quickly. While the state makes its moves, the ramifications on the ground are real.
Perhaps the world and its leaders need to stop being so reactionary and rather look to bring harmony and balance in times like this? The liberal world keeps punting that right and wrong are vague terms. Advertising that stance and finding a compromise that works in the favour of all interests could be a place to start.
This, we believe is the plight and appeal of the European Gaming and Betting Association whose impact on the future of gambling is invaluable.
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