Spain is viewed as one of Europe’s most mature and fast-growing gambling markets. Yet, despite its resilience, the industry faces two persistent challenges: operators benefitting from a stable tax regime and rising player engagement, alongside an increasingly stringent regulatory framework.
The market has rebounded strongly since the pandemic, even as the Supreme Court continues to alter marketing restrictions. As quoted on iGaming Business, Eduardo Morales Hermo, senior advisor at Ficom Leisure, said that the trend has continue to move upward since the end of 2023, thus gaining momentum. He pointed out that the casino is the main driver with slots leading player preferences and then with live roulette trailing behind.
Sports betting remains popular but less profitable due to fierce competition. Established land-based operators such as Sportium, Codere, Luckia, Casino Gran Madrid, Casino Barcelona, and Orenes Group hold a competitive edge in sustaining online growth. Hermo also added in the report that while advertisements, sponsorships, and other restrictions began in 2020, it was the operators that managed the growth.
(Source: Astute Analytica)
Spain’s tax framework continues to underpin market stability. Patricia Lalanda Ordóñez, partner at law firm Socio, explained on iGaming Business, the country has updated its tax regime for gambling that favoured more the operators. In places like the autonomous cities of Ceuta and Melilla, significant tax incentives have been offered since 2018.
Licensed operators based there benefit from a reduced 10 percent tax rate, compared to the 20 percent gross gaming revenue tax applied on the Iberian mainland. Additionally, Lalanda Ordóñez said in the report that the goals of these measures are to incentivise gambling operators to create or to maintain their operations in these Spanish territories.
Spain’s taxes remain predictable, but its regulatory environment is tightening. JDigital, the country’s online gambling trade association, spoke out about mounting challenges. Its 2024–2025 report highlights unlicensed platforms as a serious threat, with unregulated gambling reaching €231 million — 16 percent of the regulated market’s value.
Spain’s most controversial development to date is the country’s shift from generic “play responsibly” messaging to tobacco-style addiction warnings. Juan Carlos Guerrero, partner at Ecija, warned that these explicit risk messages could deter casual players, create friction at the point of play, and lower conversion rates. As quoted on iGaming Business, Guerrero noted that these official platforms could appear reliable and safe, but they might be stigmatised or become restricted, noting that player acquisition could suffer, especially with strict limits on bonuses and endorsements.
Next, Guerrero said in the report that while the public health intent is clear, the commercial impact is significant. He further added that this affects the marketing efficiency and leads operators toward retention, CRM, and product led differentiation instead of the headline acquisition. Unexpected consequences could arise, warns Lalanda Ordóñez. As quoted on iGaming Business, she said that consumer will gravitate towards in an area that is easy to use, more competitive with less restrictions. However, if more warnings and constraints are added, then they will drive demand towards less regulated or offshore markets.
The Supreme Court annulled several provisions of Royal Decree 958/2020, including bans on celebrity endorsements and restrictions on welcome bonuses in 2024. Guerrero said in the report that the industry continues to argue that new measures are being introduced without sufficient consultation. JDigital’s 2025 positioning calls for “effective dialogue” with the gambling regulator (DGOJ) to balance consumer protection with competitiveness against illegal sites.
However, the DGOJ has repeatedly attempted to reinstate annulled restrictions. The report also quoted Lalanda Ordóñez, saying that discussions with the DGOJ remains closed, resulting in meaningless dialogue with the industry. It looks like their objectives could mean reinstating the cancelled restrictions without having to negotiate.
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