Tue. Nov 5th, 2024
Spain Supreme Court overturns gambling ad restrictions

Spain’s Supreme Court has scrapped a number of restrictions on gambling advertising following a Spanish Digital Gaming Association (Jdigital) appeal.

The Spanish Royal Decree 958/2020 entered into force in November 2020. The regulations looked to reduce minors’ exposure to gambling advertising in Spain by banning sponsorship deals with operators.

Advertising on TV and radio, including on YouTube, was restricted to the hours of 1am to 5am. Operator brands are also restricted to only targeting promotions towards existing social media followers.

Other restrictions included online age-gating, as well as the prohibition of promotional bonuses. This, however, was exempt if advertising was targeted to verified customers. In 2021, Spain also banned the use of celebrities in gambling advertising, as well as sport sponsorships.

A new law was then passed in October 2022 to further restrict ads by restricting certain communications in advertising. This included references to social status, physical health, economic stability or mental health. The depiction of money or luxury goods in advertising was also prohibited. It is also illegal to suggest that family and friendships should come second to gambling.

The measures faced backlash from the industry, with the Spanish Digital Gaming Association (Jdigital) launching an appeal against the Royal Decree. This appeal was rejected in November 2023.

In reviewing the law however, the Supreme Court has now annulled several of the measures outlined in Royal Decree 958/2020, partially upholding the appeal.

In announcing its ruling, the Supreme Court said: “The ruling considers that advertising is part of the freedom of business and is subject to limits.

“However, such limits and prohibitions, insofar as they also affect the exercise of a lawful business activity, must have sufficient legal coverage, without being able to be regulated by independent regulatory standards unrelated to the criteria and limits set by the legislator.”

What has been annulled?

Spain’s Supreme Court stated that several of the Royal Decree’s measures lacked “the necessary legal coverage”. As a result, multiple measures will be annulled.

Included in the annulments is article 13, which relates to advertising towards new customers. This means that Spanish operators will be allowed to target advertising to players who have had an account for less than 30 days. Operators can also advertise in establishments designated for the sale of lottery games and are accessible by the public.

Article 15, which prohibits the appearance of celebrities in advertising has also been annulled. Previously, those of “public relevance and notoriety”, both real and fictional, where prohibited from appearing in commercial communications.

Additionally, section 1 of article 23, and section 3 of article 25, which prohibited gambling adverts on video sharing platforms (such as YouTube), have also been annulled.

Sections 2 and 3 of article 26 were also included in the Supreme Court’s decision. As a result, operators will be allowed to advertise on social media to all users over the age of 18.

What is still banned in Spain?

Article 12 on sports sponsorship was not listed in the annulments. This means that it is still prohibited for operators to advertise, or use branding for events, goods and services that can be viewed by minors. Operators are still also banned from sponsoring sporting events or broadcasts. Sponsorship activities that relate to a sports facility are also still prohibited.

More to follow…

By Xplayer