Spanish iGaming Operators Risk Hefty $50M Penalties for Breaking New Regulations
Spain's Consumer Affairs Minister, Alberto GarzoΜn, recently introduced strict measures with hefty fines for non-compliance. Last Friday, Spain's Council of Ministers approved a royal decree, aiming to strengthen security on online gambling platforms and enforce safer online environments for operators.
For significant violations, offenders could face financial penalties of β¬1 million (approximately US$1.07 million), potentially resulting in a six-month suspension of the gaming license. For extremely serious violations, the penalty soars to an alarming β¬50 million (about US$53.71 million), and a permanent suspension of the license becomes imminent.
These regulations are an attempt to safeguard vulnerable players and limit potentially hazardous activities that could lead to gambling problems, even though the country has a problem gambling rate of less than 1%.
Identifying Vulnerable Players
Moving ahead, individuals between the ages of 18 and 25 will be automatically categorized as vulnerable under the new gambling regulations. The same classification also applies to those who incur net losses of β¬600 (roughly US$644) or more over a three-week period. For players aged 18 to 25, this threshold is lowered to β¬200 (approximately US$214).
Individuals who have self-excluded and registered in the General Registry of Gambling Access Bans will also fall under the β¬200 cap. All operators in the country are mandated to use this registry.
Gaming operators are obliged to keep vulnerable players or those displaying risky behavior informed. Players will receive a monthly report detailing their gaming activities, such as the number of visits to the platform, their method of payment, and their profit-loss balance. This information is available voluntarily to the rest of the operators' users.
Operators are barred from allowing at-risk players to use credit cards for deposits. They can, however, use alternative payment methods like bank transfers and certain online payment solutions.
Operators must contact a user if they suspect them of being at risk or potentially falling into that category. The user must respond within 72 hours. If there's no response within the given timeframe, the operator must suspend the user's account. The government has yet to clarify how operators will determine if a user is at risk.
Marketing Rules
Promotional campaigns are forbidden from targeting at-risk players. Operators cannot send marketing promotions to users aged 18 to 25 unless they exclusively relate to gaming. This includes invites to exclusive parties or events or offers for VIP loyalty programs.
Reminders of near-misses in betting, such as "you almost won" or "you were so close," will no longer be allowed, as authorities deemed these messages could be excessively tempting for some gamblers.
Gaming operators must also provide a responsible gambling telephone number for users to contact them if they feel at risk of developing a gambling addiction.
