Spain is Going to Ban Gambling Advertisement

Earlier this year, Spain announced that it would lower the hammer on ads from gaming companies, as well as prohibit sports clubs from hooking up on marketing terms with gaming organizations, stating that the reforms will come this month. Today, the gaming control Directorate General (Dirección General de Ordenación del Juego - DGOJ) has reaffirmed that the ban is planned by the end of October.

Sport clubs will no longer be allowed to bring sponsorships from the casino companies until the rules come into force. Moreover, the casino promotional laws will be tightened, greatly restricting the freedom of gaming players to advertise their goods. This is despite Spain's having the lowest recorded problem gambling rate in the European union. The rate is just 0.3%, according to some reports, while the average sits around 4-5%. Other information is reported at Second Quarterly Online Gambling Market Development Report.

In the other side, sporting associations, instead of trying to break up the relationships completely, will be given the option to let their existing sponsorship deals wear out. Country will grant them a grace period on current contracts, but will not accept new deals. Many soccer clubs started negotiating sponsorship agreements with gaming companies in hopes of being granted leniency as the new rules were put into effect in a step that should have been expected when the ban rumblings surfaced.

After the latest rules are legally made law nearly all types of gambling ads will be banned. These limitations will include strict ad language rules. ONCE (Organización Nacional de Ciegos Españoles - Spanish National Organization of the Blind) and SELAE (Sociedad Estatal Loterías y Apuestas del Estado, the State Society for Lotteries and State Gambling), Spain's national lotteries will only be allowed the exceptions.

The media law reforms most likely wouldn't result in huge drops in sales. Gambling companies in Spain are known for being heavy spenders, according to the Spanish advertisers association. During the COVID-19 crisis this changed a bit. However, once and SELAE are still on top. Last year, it spent $57.6 million on ads, taking revenues up 4.4% when they hit $2.64 billion.