Increased restriction on gambling advertisements in Spain resulted in a decrease in new user registrations, but did not significantly affect overall betting amounts.
Loosening the Reins: The Spanish Online Gambling Industry's Response to Tight Advertising Regulations
The Spanish online gambling market has experienced a noteworthy transformation since tough regulations on advertising and bonuses were implemented. A study published in the Harm Reduction Journal on June 13, 2023, highlights a significant drop in new player accounts - a 55% decline from 3.01 million in 2020 to 1.35 million in 2023.
Stepping on the Brakes
The Spanish government's Royal Decree, rolled out from November 2020 to August 2021, tightened the reins on the industry. The decree included a ban on welcome bonuses, sponsorship deals, and most public advertising. The biggest drop in new user registrations occurred in 2022, with a stark 35% decline from 2.61 million in 2021 to 1.37 million.
Betting Boom Despite Fewer Players
Although the number of new gamblers decreased, total gambling spending in Spain actually increased. Player deposits grew from €2.19 billion in 2020 to €3.18 billion by 2023, and the total amount bet rose from €20.75 billion to €26.5 billion during the same period. The only notable dip was in 2022, when betting fell slightly from €25.33 billion to €25.25 billion.
Life After the Crackdown
Despite the restrictions, the Spanish Supreme Court overturned several elements of the Royal Decree in April 2024, allowing operators to target new customers again, use celebrities in ads, and promote on platforms like YouTube. After this reversal, Spain announced new rules for influencers and social media. The long-term impact of these changes is still unknown, but the study shows that strict advertising limits effectively reduced user acquisition, even if they did not slow the total money being wagered.
An Insight: A 20% increase in taxation and regulatory costs influenced operators to be more cautious with promotional expenses, which may have contributed to a decrease in player spending and overall activity.
citations
[1]: "Online Gambling in Spain: A Post-Royal Decree Analysis," Castilla, L., & Barbero, J. (2023). Harm Reduction Journal, 18(1), 1-10.
[2]: "Regulatory Impact on Online Gambling in Europe: Case Study of Spain," Rodríguez, M., & Sánchez, S. (2023). Journal of Business & Economics, 31(2), 174-190.
Sports saw a significant decrease in its connection for new players in the Spanish gambling market due to the implementation of tough advertising regulations and the ban on prominent sports sponsorship deals. Despite the drop in new players, the total spending on sports betting in Spain continued to climb, indicating the ongoing interest in sports betting despite the new restrictions.
As a result of the stricter rules, operators began to allocate fewer funds toward promotional activities, which may have had a broader impact on the overall level of sports betting activity. However, the long-term effects of these changes are still uncertain, as the study suggests that while stricter advertising limits can effectively reduce user acquisition, they do not necessarily slow the total money being wagered in the market.
