Spain’s Online Gaming Regulation: From Legal Limbo to a Leading Example
Online gaming has surged as one of the fastest-growing industries in Spain and globally, becoming a primary form of entertainment that now surpasses traditional brick-and-mortar casinos. This unexpected and significant growth has prompted governments to address the sector seriously, working to establish a legal framework that promotes supervised and secure growth for players, as well as ensuring tax revenue.
Spain’s current legal framework is so robust that it serves as a model for markets such as online casinos in Chile, Argentina, and many other Latin American countries that are facing regulatory stagnation. Let’s delve deeper into this evolution.
From Legal Uncertainty to Regulatory Leadership: The Evolution of Spain’s Legal Framework
While Spain’s legal situation for online gaming is now favorable, this wasn’t always the case. Achieving this point required considerable effort. From the emergence of the first online casinos until 2011, the industry existed in a legal gray area—neither prohibited nor legally approved.
Everything changed on May 27, 2011, with the approval of Law 13/2011 on Gaming Regulation. This law marked a turning point for the industry in the country, laying the foundation for solid regulation of casinos and other games of chance.
The law aimed to properly regulate the market and create a safe and transparent gaming environment, ensuring player protection.
To achieve this, the law introduced measures such as requiring online casinos operating in Spain to obtain a license, conducting audits to prevent fraud and money laundering, and implementing tools to combat problem gambling.
This legislation has directly impacted the operation of online casinos in Spain and continues to evolve, adapting to technological changes and the evolving demands of society and the industry.
The DGOJ and Its Functions
The objectives, measures, and mechanisms resulting from Law 13/2011, along with its amendments and developments, are managed by the General Directorate of Gaming Regulation (DGOJ).
The DGOJ is the authority responsible for granting licenses to operators that meet the strict requirements outlined in the law. It oversees licensed platforms, sanctions or revokes licenses in case of violations, and ensures that casinos and players comply with their tax obligations.
Specifically, it is the body responsible for enforcing Law 13/2011 and all other resolutions related to gaming regulation. Among its many functions, three of the most important are highlighted below.
Bonuses and Promotions for New Users
Welcome bonuses are a primary tool used by online casinos to attract and retain new users. In Spain, a decision was made to prohibit them. This strong measure was taken to prevent persuasion, especially among young players.
This does not mean that bonuses are nonexistent in Spanish casinos. However, to qualify for them, you must be a regular player on a platform for at least thirty days.
Advertising Restrictions
Another important measure enforced by the DGOJ is the restriction of online gaming advertising. Similar to the prohibition of welcome bonuses, the goal is to prevent excessive persuasion of young users.
Key measures include prohibiting advertising at sporting events, banning the use of celebrities to promote casinos, and limiting advertising hours to between 1:00 AM and 5:00 AM.
Player Protection
In general, all legislation and the functioning of the DGOJ serve to protect players. However, there are specific measures that the Spanish authority applies to enhance player protection.
For example, access to online casinos is limited for accounts that register more than 600 euros (200 euros for those under twenty-five) in losses within a period of no more than three weeks.
Another example is the self-exclusion program, through which a player can request to be excluded from a platform.
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