Spain intends to forbid promotions for gambling.
The Spanish government intends to tighten the advertising regulations for gambling, mirroring the restrictions implemented in Italy. Their goal is to equate gambling and tobacco advertising, which would lead to a ban on TV, radio, print media, and the internet.
To make their market more appealing to international gambling providers, Spain decreased its online gambling tax from 25% to 20% at the beginning of July. However, Prime Minister Pedro Sánchez has plans to significantly tighten the gambling advertising regulations. Sánchez is reportedly in talks with the left-wing Podemos party to pass a regulatory amendment for drastic advertising restrictions on online casinos and online sports betting, starting January 2019.
A cross-party agreement is already in place with Podemos leader Pablo Iglesias. The proposed measures involve aligning the advertising guidelines for gambling with those of the tobacco industry. Tobacco advertising has been largely banned in the EU since 2007, across various platforms.
Italy's strict bans are set to be applied one-to-one in Spain, with online advertising for games of chance still allowed, but limited. More measures are also expected regarding player protection and consumer protection.
The reduced online tax rate will be used to fund investigations into problem gambling. The sudden strictness is attributed to the "aggressive advertising formulas" in the sports sector, which feature celebrities and offer free bonuses. They're deemed a "massive problem," according to a government spokesperson.
Concerns from the gambling industry
The new regulations aren't well-received by Spain's local gambling lobby. With marketing campaigns worth approximately 143 million euros in the sports betting sector at risk, the Spanish Gambling Association (Jdigital) spoke out against the measures in a recent interview. President Mikel López des Torre said, "These drastic regulations are a step back from regulated and licensed competition." The association also mentioned that making gamblings ads similar to tobacco ads will worsen the problem since problem gamblers will turn to unlicensed providers.
The Spanish gambling law firm, Asensi Abogados, also commented on the advertising ban. It posited that there are numerous "unclear aspects from a legal and political viewpoint." The firm emphasized that given the uncertainty of how long the current government would govern and the potential financial implications of the ban, the gambling regulatory authority would need to work with the new standards.
These questions remain unanswered, as politicians have yet to respond. However, Italy's rigorous ban on gambling advertising may serve as a precedent for stricter rules in the UK and Scandinavia. Meanwhile, the autonomous Spanish republic of Catalonia only favors a TV advertising ban for sports betting between 6 am and 10 am to protect children. It's uncertain whether the debate will culminate in a Europe-wide campaign.
The Spanish government's rationale for these changes is to combat the negative effects of gambling ads. These measures could potentially become a trend in Europe, as other countries, including the UK and Scandinavia, are contemplating similar restrictions. However, the gambling industry remains concerned about the impact on their businesses.
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Source: www.onlinecasinosdeutschland.com
