The Spanish High Court has partially reversed a legal action brought by the Spanish Digital Gambling Association (Jdigital) against Royal Decree 958/2020, lifting restrictions including a prohibition on celebrity endorsements.

The Royal Decree, which went into effect in November 2020, sought to safeguard minors from gambling advertising by forbidding sponsorship agreements and other measures. However, the industry strongly opposed these measures, prompting an appeal by the Spanish Digital Gambling Association (Jdigital). The Constitutional Court dismissed the appeal in November 2023.

The Supreme Court, in its examination of the law, has now repealed several provisions outlined in the Royal Decree, partially upholding the appeal. This includes the removal of Article 13, which prohibited targeted advertising to new customers.

As a consequence, Spanish operators can now market to players who have been active for less than 30 days. They can also advertise in designated areas used for the sale of lottery games and accessible to the public.

The legislation prohibiting celebrities from appearing in advertisements has been repealed. Previously, any individual with public recognition, real or fictional, was barred from participating in commercials.

Furthermore, regulations governing gambling advertisements on platforms like YouTube have been lifted.

The court has also ruled that companies are now permitted to display advertisements on social media platforms for individuals over the age of 18.

**Certain Regulations Were Erroneous**

The court determined that certain advertising regulations were flawed.

For instance, the rule stipulating that advertisements on television and radio, including YouTube, could only be aired between 1:00 AM and 5:00 AM was deemed incorrect. Additionally, companies were previously restricted to promoting their products to individuals who already followed them on social media.

Other regulations, such as requiring individuals to verify their age online and prohibiting the advertising of bonuses, were also deemed invalid. However, these rules could be disregarded if the advertisements were exclusively targeted at existing customers.

In 2021, Spain also prohibited celebrities from appearing in gambling advertisements and banned sports sponsorships.

In 2022, a new law was enacted that further restricted advertising by limiting the methods in which advertisements could be displayed.

This encompasses references to social standing, physical well-being, financial security or mental well-being.

Descriptions of cash or opulent goods in marketing are also forbidden. It is also against the law to suggest that family and camaraderie should take a secondary role to wagering.

The highest court, in announcing its decision on some of these actions, stated: “The ruling considers advertising to be part of commercial freedom and subject to restrictions.

“However, these limitations and bans, as long as they also impact the conduct of legitimate commercial activities, must have adequate legal foundation and cannot be controlled by independent regulatory standards unrelated to the standards and limitations set by the legislature.”

What remains prohibited in Spain?
Article 12 on athletic backing is not included in the cancellation. This means that operators are still forbidden from promoting or branding for events, products and services that can be seen by young people. Operators are still prohibited from sponsoring athletic events or broadcasts. Sponsorship activities related to athletic facilities are also still forbidden.

The highest court’s decision came as a surprise to some.
The highest court’s decision will provide a significant boost for Spanish operators and their clients to obtain employment.

LOYRA Lawyers, a Spanish legal firm specializing in gambling, was involved in this significant ruling, assisting a claimant.

Patricia Lalanda, a senior associate at the firm, stated she was taken aback by the news.

Lalanda informed iGB: “We were quite shocked upon receiving the decision, specifically the portion of the decision that upheld the appeal, overturning the most significant provisions of Royal Decree 958/2020 concerning commercial gaming communication.”

“Following the Constitutional Court’s declaration that the constitutional issues had vanished with the amendment of the Gambling Regulation Law 13/2011, all indications pointed towards the Supreme Court pursuing a similar path. However, this was not the outcome; the verdict was definitive.”

Despite the numerous revocations, the choice not to overturn restrictions such as sports sponsorship and time limits implies that Spanish operators are still not entirely free to promote their services.

Lalanda believes that the measures reversed by the Supreme Court ought to be adequate enough that further attempts to compel more revocations will not be supported.

“I don’t believe there is any interest at this juncture, for the gambling industry or other affected parties, to initiate new paths to challenge the restrictions that remain in effect.”

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