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Top 10 FAQs Regarding the Recent Spanish Royal Decree on Gambling
By Shane Addinall Nov 25, 2020 IndustryThe Spanish have implemented a Royal Decree assisting the change of legislation and pushing the gambling industry in an entirely new direction. Find out more at GamblersPick.The Spanish Council of Ministers recently approved the passing of the Royal Decree on Advertising. The newly approved Decree will push the Spanish Gambling sector into a new era with the latest rules and regulations.
There has been a lot of uncertainty regarding what the Royal Decree focuses on. GamblersPick gives you insight on the top 10 most frequently asked questions regarding what the Royal Decree means for gamblers.
✓ 1. What Is the Territorial Scope of the Gaming Activity and All Applicable Regulations?
The territorial scope is to determine if gaming activities fall under State or Regional territory. This in return will determine the regulations applicable.
Any activity taking place throughout the territory of the State or autonomous communities where the activity’s attribution the community cannot be determined will be subject to state regulations.
If gambling activities are developed within territorial limits of a single autonomous community or exceed the territorial limits of that community it will be subject to community regulations whether it be those of the corresponding community or communities.
✓ 2. Which Gambling Activities Are Regulated as per Law 13/2011 of May?
According to Spanish laws, gambling is any activity in which economically valuable objects or money is risked in any way on future results and uncertain chance. This includes any games or activities based on luck, chance and stakes.
For any activity to be considered a gambling activity it requires 3 elements namely: Payment, Chance and Prize. If there is no prize it is not considered gambling.
✓ 3. What Are the Requirements and Costs for Obtaining licenses?
There are two different licenses available for those considering operating in the Spanish market, namely specific and general licenses. There is a registration fee of €2,500 and a license application fee of €10,000. Additional licensing fees will total €40,500.
✓ 4. Are There Different Types of Raffles?
Raffles are forms of gambling were one or more prizes are awarded during which winners are randomly selected. Prizes can be anything apart from cash.
There will be rules and requirements regarding raffles, including that permanent and non-occasional raffle operators should obtain the necessary licensing. Currently, the regulatory implementation of permanent raffles hasn’t been carried out which means it’s not yet possible to organize or market non-occasional raffles. As such all raffles are currently prohibited within the state.
For any occasional raffles, authorization is required and no minors are allowed to participate in the purchase or sales of raffle tickets. The person or entity in charge of the raffle is required to pay a gambling tax of 20%.
✓ 5. What About Affiliates Within the Industry?
Affiliates and affiliate marketing have been a big promotional tool helping gambling operators in the acquisition of new clientele. According to the Royal Decree, the companies dedicated exclusively to affiliation activities are not required to obtain a license. All others are required to obtain a license and verify the party requesting the advertising as well as be able to show valid licensing authorizing such activities.
At the end of the day, it is the gambling operators who will be held responsible for the breach of requirements when it comes to advertisements and promotions of gambling.
✓ 6. Can Promotional Sweepstakes Be Utilised?
Sweepstakes for advertising or promotional purposes do not require licensing even if it is to promote or publicise a product or service. This only comes into effect if a prize is awarded at random and the Directorate-General for the Regulation of Gambling has been notified in advance.
If it doesn’t meet these requirements then special authorization will be required first before any sweepstakes will be allowed.
✓ 7. Can Gambling Activities Be Promoted to Minors?
According to new laws, the rules state that any competitions or events that include the participation of any people 18 years or younger will make it illegal for any form of betting to take place. This rule comes into effect when 50% or more of the participants are minors.
✓ 8. Will There Be Stricter Gaming Contracts?
According to the new decree, only one contract will be signed for each operator a user want to registers with. This contract should include all the participant's ID information, activation of user and game registration, and the required casino information including treatment of personal data, inactive user registrations and forms of cancellation.
✓ 9. What Are the Promotional and Advertising Limitations?
Under the new laws, gambling promotions and content will no longer be featured or endorsed by sports clubs or celebrities. Any advertising across the internet, social networks and other online outlets are also banned.
Gambling advertisements will only be viewable between 1 am and 5 am across traditional media provided the required licensing is in place. All digital ads allowed to broadcasts will have an age restriction filter that first needs to be approved by audiences before it can be viewed.
✓ 10. Will There be Bonus Restrictions?
bonuses and promotions play a big role in the online casino industry but for Spanish players, these are about to get a bit more restrictive. According to the Royal Decree, instead of multiple offers, all new players can enjoy a single welcome bonus capped at €100.
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