Regulating Online Gambling Without Dialogue: A Backdoor Approach

Spanish Gaming Sector Criticizes Regulatory Overreach

The Spanish online gaming industry is once again raising concerns about the Dirección General de Ordenación del Juego (DGOJ), the country’s gaming regulator. Accusations center around the DGOJ’s alleged attempts to circumvent legal processes and impose regulations that the industry views as excessive and detrimental.

Circumventing Legal Setbacks

The core of the issue lies in the DGOJ’s efforts to reinstate articles from Royal Decree 958/2020, concerning commercial communications, which were previously annulled by the Supreme Court. The industry claims the DGOJ is using unconventional methods to achieve this, first attempting to include them in a failed public health bill and now through an amendment to the Customer Service Bill.

“New intrusive amendment, new disregard for the online gaming sector,” the industry argues.

Sweeping Reforms Without Due Process

The proposed Amendment 176 goes beyond simply reinstating the annulled articles. It introduces a broad reform of the Gaming Law, including new obligations related to payment methods and the creation of a new Registry of Providers with extensive additional requirements. Critics point out that this reform is being pushed through Congress without the legally mandated public consultation process, which would allow the industry to share its technical expertise and concerns.

A History of Questionable Practices

This isn’t the first time the DGOJ’s regulatory approach has been questioned. The Supreme Court itself previously warned against the DGOJ’s regulatory overreach. The industry sees this latest amendment as another “patch” on top of previous “patches,” questioning the lack of standard legal processes.

The Weight of Regulation

The amendment is described as the latest wave in a “regulatory tsunami.” Following Decree 958/2020, Royal Decree 176/2023 on safer gaming environments imposed numerous obligations on the sector. Operators invested heavily to adapt, with smaller companies bearing the brunt of the costs. The upcoming joint deposit limit system, expected this summer, will require a complex IT control system. Amidst these changes, the DGOJ is now pursuing an unexpected reform of the Gaming Law.

Industry’s Commitment to Responsibility

Despite the annulment of advertising restrictions, the online gaming sector emphasizes its commitment to responsible practices. The industry highlights its self-regulation mechanisms, such as the Code of Conduct on commercial communications, which ensures rigorous advertising control. They argue that the current situation is different from 2020 and requires a different approach.

Focus on Illegal Gambling

The industry believes the DGOJ should prioritize tackling illegal gambling. They point out that the DGOJ’s own data shows that sanctioned operators are unlicensed entities based outside of Spain, whose fines are rarely collected. This “legal loophole” remains unaddressed, while legal operators face disproportionate regulatory burdens, hindering their growth and competitiveness.

Call for Common Sense

The industry is calling for adherence to legal procedures and a focus on solving real problems, such as the rise of illegal gambling. They advocate for genuine public-private collaboration, ensuring the sector’s long-term sustainability. Ultimately, they seek a “fair and moderate dose of common sense” in regulation.