The Spanish online gambling sphere is currently considered one of the most dynamic in the EU. Despite its obvious investment potential, the sector is increasingly facing stricter regulations and greater uncertainty about oversight.
Casino Market’s team has thoroughly studied the local online segment and identified areas that will shape its development in the near future. Our experts can guide you on launching and scaling projects in Europe and other jurisdictions.
Overview of the Current Industry Situation
Operators continue to cite Spain’s stable tax model as one of its main advantages. While many countries in the region are increasing their fiscal burden, local authorities are in no rush to change existing regulations.
Meanwhile, the industry faces additional limitations and uncertainties. A prime example is Royal Decree 958/2020. It took Jdigital, the national iGaming trade association representing the interests of niche brands, nearly 4 years of litigation to secure a waiver of several business requirements.
The Supreme Court’s decision to lift some of the marketing restrictions took effect only in April 2024. Despite the protracted process, industry participants generally assess the environment as stable and still attractive for investment.
State of Different Entertainment Verticals
Growth has accelerated significantly since the end of 2023. The main driver of the online segment is the casino vertical, where slots confidently hold the top spot in demand. Live roulette tables remain the 2nd most popular format.
The situation is different in the online betting sector. Due to high competition, it is perceived by investors as less profitable.
The digital vertical relies heavily on large offline operators, such as:
- Luckia;
- Codere;
- Sportium;
- Orenes Group;
- Casino Barcelona;
- Casino Gran Madrid.
Taxation System That Benefits Gambling Brands
The fiscal model in the Spanish gaming industry remains transparent and stable, and the 2018 amendments made it even more advantageous for market participants. The revised legislation required businesses registered in the autonomous cities of Ceuta and Melilla to pay only 10% on GGR, down from 20%.
The government’s flexibility and various investment programs it supports, particularly in technological development, made a significant difference. The strategic focus is on attracting attention and funds to innovation in the gambling industry and other advanced sectors. This approach demonstrates the country’s strong commitment to legal certainty and a stable, predictable growth environment.
A clear and sustainable tax system with incentives for certain regions allows operators to expand their investment potential and strengthen the market as a whole. Reducing rates brings not only additional budget revenue to the state but also numerous commercial and social benefits.
Online Shadow Segment and Public Concerns
A stable fiscal model does not alleviate the challenges entertainment businesses face with oversight requirements and their increasingly stringent trend.
In 2025, Jdigital published a report on the size of the domestic unlicensed field:
- Sector volume. According to the document, the total turnover of illicit platforms in 2024 exceeded €231 million.
- Revenue distribution. The figure represents approximately 16% of the Spanish regulated market’s value.
- Central threats. The shift of customers to shadow portals, especially among young people, is compounded by low awareness of the legal gambling segment.
- Government response. The situation prompts the authorities to consider measures for combating grey operators and creating conditions that strengthen the licensed niche.
One of the most controversial changes was a decree issued by the country’s Ministry for Consumer Affairs on October 1st, 2025. It required gaming platforms to replace neutral “play responsibly” messages with explicit warnings, similar to those issued by tobacco companies.
Such reminders must:
- expose ludomania risks;
- detail the statistical probabilities of losses;
- be placed on product pages and also in advertising materials.
Some industry experts criticised the initiative, arguing that the new notifications could have a complex and ambiguous impact on the market. These messages reduce the effectiveness of attracting new audiences, suppressing impulse and conversion.
As a result, operators may face a change in brand perception. Platforms will appear official and safe, but audiences consider garish banners about addiction risks as fading enjoyment and a kind of negative label. The initiative’s public health objective is obvious, but from a commercial perspective, these signs severely limit marketing effectiveness and push studios to more aggressive retention methods.
Consumers naturally choose easy-to-use products with minimal restrictions. Excessive statements can steer them toward less regulated or offshore offerings. Each new limitation for licensed brands strengthens the competitive advantage of shadow platforms. As a result of such actions, audiences may lose trust and move on to less secure alternatives.
Advertising: Friction Between the Industry and Authorities
Despite the repeal of certain Royal Decree 958/2020 provisions, gambling promotion remains the main point of conflict between the parties. Jdigital continues to defend its position, arguing that restrictions are being introduced without sufficient prior discussion. Throughout 2025, the agency actively sought to restore dialogue with the DGOJ and revise policies to better protect consumers.
The association is doing everything possible to ensure that certified operators remain more attractive than illegal ones. Nevertheless, the regulatory body continues attempting to reinstate the repealed provisions.
The lack of effective dialogue complicates local promotion and also makes global marketing campaigns problematic. In response, niche brands are forced to use modular scenarios, focusing more on CRM and highly targeted traffic channels. Despite business discontent, Spain’s authorities are considering imposing limits on joint deposits and more sophisticated algorithms to identify risky behaviour.
The key issue remains the misalignment of technical and legal requirements. The lack of a supervision framework for integrating specialised solutions creates long-term operational difficulties and security threats. A solution is only possible through close interaction among all industry participants.
The Main Things About Spain’s Online Gambling Sector
Let us explore the fundamental insights from this article:
- The national regulator’s overall measures are seen as a benchmark in Europe and also in Latin America.
- The country is one of the most mature gaming jurisdictions in the EU, which bears a dual responsibility: to build a stable domestic industry and set precedents for other regions.
- Today, the state offers entrepreneurs a wide range of opportunities, from tax incentives to regular support for tech initiatives.
- When entering the local market, businesses will have to consider several oversight restrictions.
- Once dialogue between operators and the regulator is restored, the sphere will be able to grow and expand much faster.
Feel free to contact us if you seek to join the ranks of the most prosperous global companies. We will help you launch a turnkey gambling business in Europe and other promising regions.
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