Online Gaming Ad Spend Returns to Pre-Restriction Levels | Business

Online Gambling Advertising Surges in Spain After Restrictions Eased

Online gambling and betting companies in Spain are once again heavily investing in advertising. After a significant decline caused by the restrictive royal decree implemented in late 2021, the Supreme Court’s decision to lift some of these limitations has revitalized the industry.

In 2024, these companies spent €203 million on advertising, a 37.3% increase compared to the previous year. This figure is nearly on par with the €205 million spent in 2021, before the restrictions took effect. According to data from the Directorate General for Gambling Regulation (DGOJ), this marks a new annual record.

The original decree, championed by former Minister of Consumer Affairs Alberto Garzón, severely limited the public exposure of these companies. While a gambling law had been in place since 2011, it did not regulate advertisements for online betting and gaming, which had become highly prevalent, particularly during sports broadcasts on radio and television. The new regulations, effective from November 2021, restricted advertisements on these platforms to the hours between 1 a.m. and 5 a.m., including digital platforms. It also prohibited sponsorships of sports entities or competitions, banned the use of celebrities in advertising, and restricted welcome bonuses.

The impact was immediate. Between 2021 and 2022, advertising spending fell by nearly 34%, and sponsorships plummeted by 85%. While sponsorships remain low, advertising investment has rebounded. This recovery is largely due to the Supreme Court’s decision in April of last year to overturn several articles of the decree, effectively allowing these operators to advertise more freely on digital platforms. Advertising expenditure in the second half of 2024 accounted for almost 60% of the year’s total, with December reaching a record high in the historical series.

“It’s a logical consequence after a period of brutal restriction,” explains Jorge Hinojosa, Director General of Jdigital, the association of online operators that challenged the royal decree in the Supreme Court.

“The elimination of some restrictions following the ruling has allowed operators to advertise in the online environment, through campaigns on social media, video platforms, and websites. Digital media, particularly in the sports sector, plays a significant role,” he adds. In his view, the original royal decree offered limited options for promotion and “free competition among operators,” and the window opened by the Supreme Court has allowed them to advertise again. “If there are no unexpected regulatory changes, spending will stabilize,” Hinojosa predicts.

The government has attempted to reinstate some of the rules overturned by the Supreme Court, introducing new limits in the draft law for the creation of a State Public Health Agency, an initiative that was rejected by the Congress of Deputies last week.

Record Figures in Online Gambling

DGOJ data reveals that 2024 was a year of strong growth in online gambling. In Spain, the total amount wagered exceeded €35 billion for the first time, a 10% increase compared to the previous year, with similar growth in both casino games and betting.

The gross gaming revenue, which is the amount earned by operators after deducting promotional bonuses and prizes, reached €1.454 billion, an increase of almost 18%. The number of active players approached two million, a year-on-year increase of 22%. All of these figures are record highs.

Hinojosa believes this is a “natural growth” within a context of general economic momentum and increased digitalization. However, the Jdigital executive believes that online gambling in Spain is “far” from the penetration it has in other markets, given the importance of in-person gambling.