Spain Intensifies Crackdown on Illegal Gambling and Identity Theft in Online Betting

Spain is ramping up its efforts to combat illegal gambling, targeting both unlicensed websites and fraudulent player accounts. The Dirección General de Ordenación del Juego (DGOJ), the regulatory body, is doubling down on its strategy to protect players and eliminate fraudulent activities within the online gambling sector.

The Role of Spain’s “Gaming Police”

In recent months, the DGOJ has successfully blocked and disabled fourteen illegal gambling operators. This action sends a clear message: unauthorized betting platforms will not be tolerated in one of Europe’s most strictly regulated markets.

This crackdown is part of a coordinated strategy involving law enforcement, regional regulators, and specialized “gaming police” units. These units work closely with the DGOJ to monitor, investigate, and shut down illegal online sites and betting houses.

Through algorithms and verification systems, they ensure that gambling in Spain remains legal and secure. Their mission extends beyond enforcing the law to protecting consumers from fraud, money laundering, and the risks associated with unregulated gambling.

International Attention

Spain’s approach has garnered international attention. Countries like Italy, France, and Germany are considering replicating the Spanish model of close collaboration between regulators, financial institutions, and law enforcement agencies.

The effectiveness of the Spanish system is highlighted by its ability to impose substantial fines. In November 2024 alone, over 65 million euros in fines were issued, primarily targeting foreign online operators who ignored licensing requirements. Regulatory bodies in other countries are also taking note of these actions.

Beyond Punishment: Evolving Regulations

The regulatory framework in Spain is evolving to address new challenges, such as loot boxes in video games, international cooperation to dismantle cybercriminal gangs, match-fixing, and blockchain-based gambling.

Player Protection as a Priority

Protecting players is a cornerstone of Spain’s strategy. This involves implementing robust safeguards for vulnerable groups, especially young adults and those exhibiting risky gambling behavior.

Operators are now required to alert players to risky patterns, limit credit card usage, and exclude at-risk individuals from promotions and VIP programs. Monthly activity reports and mandatory helplines are also part of the new regulations, placing greater responsibility on operators to ensure safe gambling practices.

Hacienda Targets Identity Theft in Online Betting

The Spanish Tax Agency (Hacienda) is actively pursuing cases of identity theft related to online betting. The INCIBE, the cybersecurity agency, has received reports of individuals being falsely accused of online gambling winnings.

During the tax season, some taxpayers are discovering that the AEAT is attributing online betting gains to them that they never made, resulting in unexpected tax liabilities.

Combating Identity Theft

Criminals are impersonating ordinary citizens to open accounts on online gambling platforms, particularly for sports betting.

The process involves using stolen or leaked personal data to register on these platforms. The winnings are then deposited into the criminals’ bank accounts.

The problem arises when Hacienda demands taxes on these fraudulent gains. The Instituto Nacional de Ciberseguridad (Incibe) recalls a similar case from 2023, where a taxpayer received a demand for 24% tax on over 25,000 euros in online football betting winnings, despite never having placed a bet.

This type of fraud underscores the urgent need to strengthen security measures and identity verification on gambling platforms, and to raise public awareness about the risks of identity theft in the digital environment.

Efforts are being intensified to prevent identity theft and protect citizens from becoming victims of this type of fraud.