Global Market Leaders: A Gaming & Gambling Overview
Background
Spain’s online gambling sector has entered a phase of regulatory maturity and economic consolidation. More than a decade after the initial licensing round of 2012, the framework designed under the Gambling Act has stabilised the market and attracted a competitive range of operators duly licensed by the Dirección General de Ordenación del Juego (DGOJ). The regulator’s focus has gradually shifted from expansion and market oversight to responsible gambling and consumer protection, in line with broader European policy trends.
In recent years, regulation has intensified around advertising rules and safer-gambling requirements. The debate surrounding the proportionality of these measures has dominated both the political and judicial arenas. Although the courts have nuanced the scope of certain advertising restrictions, the government continues to press for the reintroduction and reinforcement of these measures. This dynamic reveals an ongoing tension: while judicial oversight seeks to balance consumer protection with the preservation of a sustainable regulated market, the legislative agenda remains firmly committed to tightening controls in these key areas.
Key Areas of Regulation
Regulatory discussions in 2025 have centred on the introduction of joint deposit limits applicable across all licensed operators. The new approach aims to assess players’ risk exposure holistically, rather than only operator by operator, allowing earlier intervention where patterns of excessive play are detected. Another significant development is the creation of a registry of gambling software providers to ensure traceability and accountability within the supply chain, reinforcing the technological integrity of the licensed ecosystem. At the same time, several initiatives remain pending, including the authorisation of certain live gaming modalities such as live blackjack and the long-awaited reopening of licensing windows. These delays have slowed innovation and hindered new market entrants, creating a sense of regulatory inertia at a time when neighbouring jurisdictions are pursuing modernisation.
An increasingly urgent issue in Spain concerns identity-verification systems. Both the DGOJ and the Spanish Financial Intelligence Unit (SEPBLAC) have repeatedly stressed that current methods are insufficient to address the growing volume of attempted identity fraud and impersonation cases. The number of compromised credentials and fraudulent sign-ups has risen markedly, revealing structural weaknesses that require immediate corrective action. Strengthening identity verification is critical not only for consumer protection but also for AML integrity, payment security and the overall credibility of the regulated market. Industry, regulators and technological providers alike recognise that, without a serious, co-ordinated enhancement of verification protocols, the system’s foundations risk being strained at a moment when digital fraud is becoming more sophisticated.
A recurring theme in Spanish gambling policy is the delicate balance between consumer protection and channelisation. Overly restrictive regulation, particularly on advertising and bonuses, risks undermining the visibility of legal operators and inadvertently promoting migration to unlicensed sites that operate without safeguards, taxation or player protection. Evidence from the market suggests that proportionate frameworks, where licensed operators retain reasonable competitive tools, achieve far better results in steering consumers towards the legal market. Effective enforcement against illegal supply therefore depends not only on sanctions and blocking orders but also on the attractiveness and accessibility of the regulated channel itself.
Despite the tightening of rules, the regulated market has continued to record steady growth, indicating that the underlying demand remains robust. The online gambling sector remains a high-volume, low-margin business: in sports betting, for example, payouts typically reach around 95% of stakes, with the remaining 5% subject to a 20% gaming tax, or 10% for operators established in the autonomous cities of Ceuta and Melilla. These territories have emerged as focal points for digital investment since the 2018 introduction of fiscal incentives designed to diversify their economies. Ceuta and Melilla have successfully positioned themselves as hubs for online gambling and technology service providers, combining tax benefits with institutional support.
The public perception of gambling in Spain remains sensitive. Political discourse often emphasises restrictive narratives, leaving limited space for open debate about innovation, economic contribution or regulatory proportionality. The challenge for the coming year is to rebuild a more balanced policy conversation based on empirical data rather than rhetoric. It is increasingly recognised that long-term sustainability in the gambling industry depends on stable, responsible customers rather than on intensive play. The DGOJ’s evolving strategy reflects this philosophy, focusing on behavioural analytics, early detection systems and enhanced due-diligence mechanisms to safeguard at-risk players while supporting a healthy, legal market.
Against this backdrop, the importance of genuine dialogue within the industry has become more evident than ever. Recent years have seen a noticeable decline in structured collaboration between authorities, operators and other stakeholders. Regulatory action has increasingly been unilateral, with little room for discussing operational realities, technological constraints or the practical impact of new requirements.
Outlook for the Future
Looking ahead to 2026, Spain’s regulatory agenda will likely focus on several converging priorities:
- reviewing advertising restrictions as the DGOJ aims to reintroduce the stricter rules, reinforcing compliance and safer gambling through risk-based supervision and creation of the uniform algorithm to detect customers with risky behaviour; and
- improving co-ordination with providers and technology platforms to curb illegal gambling.
Moreover, as artificial intelligence becomes integral to gaming operations, both for player monitoring and AML controls, regulators face the dual challenge of facilitating technological innovation while ensuring data protection and ethical oversight. The adoption of regulatory sandboxes could provide a pragmatic path forward, allowing supervised experimentation in areas such as automated identity verification, payment integrity and game fairness.
Spain’s online gambling market remains one of the most structured and transparent in Europe, yet its continued success will depend on maintaining regulatory balance – firm in consumer protection, but flexible enough to accommodate innovation and preserve competitiveness. The next phase of reform will test the regulator’s ability to sustain that balance, ensuring that the Spanish framework remains a benchmark for responsible, modern and well-regulated online gaming.