Online Gambling in Spain: A Stable Market with Regulatory Challenges

Jorge Hinojosa, Director General of Jdigital, recently shared insights with El Economista regarding the latest data from the DGOJ (Directorate General for Gambling Regulation) on the online gambling market in Spain. He emphasized that profit margins are stabilizing and highlighted that the average annual expenditure of €730 per player is not excessive and remains lower than in comparable European countries.

Hinojosa connects the growth of online gambling to the broader expansion of e-commerce. He also points out that, despite the prominence of digital platforms, SELAE (Spanish State Lotteries and Betting) continues to account for the majority of gambling expenditure, a fact often overlooked by the public.

The Impact of Regulatory Restrictions

Hinojosa also drew attention to the consequences of the current regulatory framework, particularly the advertising restrictions implemented in recent years. According to him, these limitations, such as the ban on welcome bonuses, have contributed to the proliferation of unlicensed operators. “In the last three years, due to the regulatory environment, more unlicensed sites have emerged, with up to a thousand being detected,” he warned.

Consequently, the DGOJ has imposed over €140 million in fines and disqualified more than 14 companies, most of which were fined €5 million, except for a repeat offender who received a €10 million penalty. Since July 2021, the total amount of fines imposed exceeds €398 million. However, these fines are primarily levied against illegal operators, who account for 98.1% of the total amount and, as is often the case, will not pay a single euro. This contrasts with the (smaller) penalties imposed on legal operators.

Operator Relocation and Fiscal Advantages

Another trend highlighted by Hinojosa is the relocation of operators from Gibraltar, Malta, and other jurisdictions to Ceuta and Melilla, territories that offer significant tax advantages for the sector. “The regulatory environment in our country focuses more on the player to prevent problem gambling but overlooks some important aspects for the operator,” stated the Director General of Jdigital.

The article emphasizes the existing tax advantages in Ceuta and Melilla, noting that, nationally, online gambling companies are subject to a 20% tax on gambling activities, while in Ceuta and Melilla, this is reduced to 10%. Furthermore, these territories apply reduced rates for corporate tax (12.5%) and social security contributions (11.8%), creating a favorable environment for over 1,000 direct jobs.