The gambling industry in Spain has undergone significant changes in recent years, with the introduction of new regulations governing advertising and anti-money laundering (AML) measures. These regulations aim to protect players, prevent fraud, and ensure the integrity of the gambling sector as well as regulate the growth of the number of new casinos in Spain.
Advertising Regulations for Online Gambling
The Royal Decree 958/2020, enacted in November 2020, introduced comprehensive advertising regulations for online casinos in Spain. Please click here to find the list of new online casinos is Spain. The decree aims to minimize the impact of gambling advertising on vulnerable individuals and ensure that promotions are fair and transparent. Key provisions:
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Time Restrictions: Gambling advertisements are now restricted to specific time slots, typically during late-night hours, to minimize exposure to children and teenagers.
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Content Limitations: Advertisements must avoid suggesting that gambling is a viable solution to financial problems, guarantee success, or enhance personal skills. They are also prohibited from featuring celebrities or sports figures who might influence young audiences.
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Sponsorship Bans: Sports sponsorships by gambling companies, especially those involving teams and events popular among younger audiences, are now largely prohibited. This measure aims to reduce the visibility of gambling brands in sports contexts where they might attract underage individuals.
Anti-Money Laundering Measures
In line with international AML standards, Spanish gambling operators are required to implement robust AML procedures to prevent the use of their platforms for money laundering and terrorist financing. These measures include:
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Enhanced Due Diligence: Gambling operators are required to conduct thorough due diligence on their customers, especially those engaging in high-value transactions. This involves verifying the identity of players, assessing the risk of money laundering, and monitoring ongoing transactions for suspicious activity.
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Reporting Obligations: Operators must report any suspicious transactions or activities to the relevant authorities promptly. This includes maintaining comprehensive records of all transactions that exceed certain thresholds and cooperating fully with AML investigations.
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Internal Controls: Companies are mandated to establish robust internal controls and training programs to ensure staff are well-versed in AML practices and can effectively identify and mitigate potential risks.
Offshore Operators
Unlicensed offshore gambling operators who offer their services to Spanish residents may face significant penalties. The Spanish Gambling Act prohibits the provision of gambling services without a valid license from the General Directorate for Gambling Regulation (DGOJ).
Objectives of the New Regulations
The overarching goals of these regulations are multifaceted:
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Player Protection: By regulating advertising and enhancing AML practices, the government aims to safeguard players from the potential harms associated with gambling, such as addiction and financial loss.
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Fraud Prevention: The measures are designed to create a more secure gambling environment by preventing fraudulent activities, including money laundering and financing of illegal enterprises.
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Sector Integrity: Ensuring the integrity of the gambling sector is paramount. By fostering transparency and accountability, these regulations help build trust among consumers and stakeholders, ultimately contributing to a more stable and reputable industry.
Impact on New Online Casinos and Challenges
Consequences for business:
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Fines: Operators may be fined up to €500,000 for each unlicensed activity.
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Disqualification: Operators may be disqualified from obtaining a Spanish license in the future.
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Blocking: Access to unlicensed websites may be blocked by Spanish internet service providers.
The new regulations have had a significant impact on the emerging new online casino market in Spain. Operators must comply with strict advertising and AML requirements to obtain and maintain a license.
Challenges:
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Marketing Restrictions: Operators face challenges in promoting their services within the limitations imposed by advertising regulations.
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Compliance Costs: Implementing robust AML procedures can be costly for new operators with limited resources.
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Competition from Unlicensed Operators: Unlicensed offshore operators continue to offer their services to Spanish players, posing a competitive threat to licensed casinos.
Conclusion
The new gambling regulations in Spain aim to protect players and ensure the industry’s integrity. Advertising restrictions minimize the potential for harm to vulnerable individuals, while AML measures prevent the use of gambling platforms for illicit activities. New online casinos must navigate these regulations to succeed in the Spanish market. By complying with the requirements, operators can demonstrate their commitment to responsible gambling and contribute to a safe and fair gaming environment.
