Jorge Hinojosa, General Manager of the Spanish gambling trade organization JDigital, stated that the Spanish gambling industry will not face the impact of a gambling tax increase in the short to medium term, but the industry is facing new regulatory challenges. The Spanish government has recently implemented new policies requiring online gambling operators to add health warnings similar to those on tobacco products in their offerings, alerting players to the risks of gambling addiction and the possibility of losing money. This policy has been incorporated into law as part of Royal Decree 958/2020, but industry representatives claim that they were not consulted before its implementation, and the specific timetable has not yet been clarified. Hinojosa emphasized that since Spain has not held a budget meeting in the past two years and is not expected to hold one in 2025, the tax system is not expected to change, but advertising restrictions may be further strengthened.
Policy Background and Industry Status
The Spanish government has recently implemented new gambling regulatory policies, requiring online gambling operators to add health warning labels similar to those on tobacco products. This policy aims to alert players to the dangers of gambling addiction and the potential financial losses.
The new policy, as part of Royal Decree 958/2020, has been incorporated into Spanish gambling law, covering new regulations on marketing and gambling communication, reflecting the government's strengthened consumer protection.
Industry Response and Communication Issues
JDigital General Manager Jorge Hinojosa stated that the organization learned about this new policy from the media, not through official channels. Before the Minister of Social Rights, Pablo Bustinduy, announced this news on October 1, the policy had not been included in any discussions with regulatory authorities.
Hinojosa pointed out: "The regulatory authorities have not clearly explained the specific implementation details. We do not know exactly what is going on and hope to obtain a reliable impact analysis again."
Warning Policy Implementation Timetable
Currently, the specific implementation timetable for tobacco-style warnings is not clear. Regulatory authorities have not provided a detailed timeframe, and operators face uncertainty about compliance deadlines.
The government announcement indicates that the rule will be implemented as part of the existing legal framework, but specific operational details and transition arrangements remain to be clarified.
Data Basis and Industry Doubts
The government states that the rationale for the new policy is based on addiction data released by the Spanish Ministry of Health in 2024, which forms part of the country's national drug plan. The government believes that recent addiction data supports the implementation of stricter warning measures.
However, Hinojosa questions the relevance of these data: "Looking at the addiction statistics, the gambling problems of consumers are actually not more severe than before. The addiction data of students over the past four or five years are similar, and the problem is not more severe or different than before."
Advertising Restrictions and Potential Changes
Spanish policymakers are considering further strengthening player protection measures, including reinstating the previously revoked ban on using celebrities in gambling advertisements. Congress is currently dealing with this matter, but no specific timetable has been provided.
The government is reconsidering up to five policies in Royal Decree 958 of 2020, which initially imposed strict restrictions on gambling marketing, including prohibiting sponsorship agreements with operators to reduce minors' exposure to gambling advertisements.
Political Environment and Decision-Making Impact
The current political instability in Spain affects the timetable for policy discussions. In June this year, the secretary of the Socialist Workers' Party (PSOE), to which the Prime Minister belongs, resigned due to corruption allegations, and the Prime Minister himself is also facing calls for resignation from the opposition.
Hinojosa pointed out: "Significant regulatory changes must be based on proven evidence and time series, rather than driven by impulse, intuition, or partial interpretation of a single data point."
Tax Stability and Industry Expectations
Unlike other European countries, the Spanish gambling industry is not expected to face a tax increase threat in the near future. Hinojosa stated that Spain has not held a budget meeting in the past two years and is not expected to hold one in 2025, which means that there will be no tax increase measures in the short term.
He clearly stated: "We expect that there will be no changes in the tax system. Whether the government is willing or not, this will once again impact the investment and innovation that the industry brings to the country."
Regulatory Balance and Market Protection
Hinojosa expressed concern about the current direction of regulation, questioning: "It is difficult to understand why there are so many regulations to protect players, so who protects the gambling market?"
He believes that regulatory policies need to find a balance between player protection and healthy market development, avoiding excessive regulation that unnecessarily burdens the industry.
International Comparison and Trend Analysis
Compared to other European countries, Spain maintains relative stability in its gambling tax policy. Governments in the UK, the Netherlands, and countries like Latvia and Romania are considering or have already implemented measures to increase gambling tax rates.
This relatively stable tax environment in Spain may provide operators with a more predictable operating environment, conducive to long-term investment planning.
Future Outlook and Industry Adaptation
Despite facing new regulatory requirements, the Spanish gambling industry is expected to continue adapting to the changing environment. Operators need to prepare for the upcoming warning label requirements while keeping an eye on potentially further strengthened advertising restrictions.
Industry representatives call on the government to strengthen communication and consultation with the industry in the future policy-making process, ensuring that regulations protect consumers while supporting the healthy development of the legal market.
