Spain’s Supreme Court Reverses Gambling Advertising Restrictions

The highest court in Spain has partially reversed the appeal filed by the Spanish Digital Gaming Association (Jdigital) against a royal decree that imposed restrictions on online gambling advertising.

The Supreme Court’s decision overturns limitations on gambling marketing, partially supporting the appeal by the Spanish Digital Gaming Association (Jdigital).

The royal decree, which went into effect in November 2020, aimed to decrease the exposure of young people to gambling advertisements in Spain by prohibiting sponsorship agreements, among other measures.

The decree faced strong opposition from the gaming industry, with the Spanish Digital Gaming Association (Jdigital) submitting an appeal. The appeal was dismissed by the Spanish Constitutional Court in November 2023.

However, the Supreme Court, in examining the law, has now overturned several provisions outlined in the royal decree, partially upholding the appeal.

As a result, several provisions have been reversed, including Article 13, which addressed targeted advertising to new customers.

This means that Spanish operators will be permitted to market to players who have not been with them for 30 days. Operators can now also advertise in locations designated for the sale of lottery games and accessible to the public.

The Spanish government has revoked a prohibition on famous individuals featuring in gambling commercials. The nation’s highest court has determined that a regulation forbidding celebrities from appearing in advertisements is invalid. The law also prohibited the placement of gambling advertisements on video-sharing platforms such as YouTube. The court has also overturned restrictions on advertising on social media for adults.

The court discovered that some provisions in the Royal Decree, which regulated gambling advertising, lacked a legal foundation. These measures included restrictions on advertising times, the promotion of brands on social media, and online age verification. The court also ruled that a ban on promoting bonuses was invalid.

Spain had previously forbidden the use of celebrities in gambling advertisements and sports sponsorships. In 2022, a new law was passed that further restricted advertising by limiting certain types of dissemination in advertisements.

Spain continues to ban the promotion or utilization of trademarks for occurrences, products, and services that can be viewed by young people. Companies are still barred from sponsoring sporting events or broadcasts. Sponsorship endeavors linked to sports venues are also still forbidden.

Patricia Lalanda, a senior associate at the company, expressed astonishment at the news.

Lalanda informed iGB: “We were taken aback when we received the verdict, upholding the appeal and reversing the most significant provisions of Royal Decree 958/2020 on commercial gaming communications.”

“All signs pointed to the Supreme Court following the same course after the Constitutional Court’s order essentially stated that the constitutional issues had vanished with the amendment of Law 13/2011 on gambling regulation. But this was not the outcome; the ruling was definitive.”

Despite the numerous reversals, the choice not to overturn restrictions such as sports sponsorships and time limits indicates that Spanish operators are still not entirely free to advertise.

However, Lalanda believes that the measures reversed by the Supreme Court should be sufficient, and that further attempts to compel more reversals will not be supported.

“I don’t think there is any desire now for the gambling industry or other affected parties to pursue new avenues to challenge the restrictions that remain in effect.”

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