It’s been almost three years since the passage of the Royal Decree on Safer Gambling Environments in Spain. However, operators are still holding out for definitive updates on how the framework will impact the Spanish gambling industry.
That’s according to Fernando Martín, Partner at Loyra Abogados. Speaking to iGaming Expert, Martín shared his view that the delays in the framework actually being implemented are casting a shadow of uncertainty over whether the new regulations could result in more players flocking to the unregulated market.
Martín told iGaming Expert: “Operators have been preparing for structural changes — including tighter promotional rules, cross-operator deposit limits and enhanced monitoring mechanisms — without full visibility on timing or final technical specifications such as implementation dates, reporting formats and IT integration requirements.
“The absence of clear timelines and detailed implementation guidance has frozen certain strategic decisions or at least deferred them and delayed investment. In a sector as tightly regulated as gambling, regulatory clarity is not a luxury; it is a prerequisite for stability and for maintaining investor confidence.
“That uncertainty carries operational costs and affects commercial decision-making, particularly in areas such as product launches and marketing investment.”
Headline changes include a cross-operator deposit limit system, reshaping advertising requirements, including mandatory health warnings akin to those for tobacco and alcohol, and a regulator-led central player harm detection system.
At the recent FEJAR Conference, Andrés Barragán, Secretary General for Consumer Affairs and Gambling, informed operators that they must prepare for a year of regulatory changes, warning that the current system is ‘not sufficiently balanced to protect those most at risk’.
However, Martín contended that the assertion does not necessarily represent a failure of the current system, highlighting that Spanish operators are already required to adhere to one of the strictest sets of gambling guidelines across Europe.
Like in many other jurisdictions, fears now remain that increasing regulatory requirements will lead to a drop in channelisation as more players opt for black market operators, many of which offer fewer restrictions to play.
Martín said: “Spain has so far maintained relatively strong channelisation rates. The risk is not necessarily an immediate surge in black-market activity, but a gradual displacement of high-intensity or bonus-driven players toward offshore operators offering fewer restrictions.
“Individually, measures such as stronger risk warnings, cross-operator limits and centralised monitoring aim to reinforce player protection within the licensed market. Collectively, however, they raise a question of competitive asymmetry between regulated operators and offshore platforms.
“If protective measures materially reduce the competitiveness of licensed operators without equally robust enforcement against illegal supply through effective blocking and sanctioning mechanisms, the relative prominence of the black market could increase over time.”
In particular, Martín added that the implementation of centralised deposit limits may force operators to more aggressively seek out ‘recreational, lower intensity’ players to replace their small base of high-value customers.
For now, operators in the Spanish market will be hoping to receive regulatory clarity in short order so they can move forward and shape their business roadmap for the foreseeable future.
