Spain Proposes Stricter Regulations on Gambling Ads and Social Media Influencers
In 2020, Spain shook the gambling industry with the introduction of the Royal Decree, a law that clamped down on gambling advertising, eliciting mixed reactions from stakeholders.
Fast forward to the present, Spain finds itself at a crossroads again as the government aims to reintroduce certain restrictions on gambling ads through the proposed New General Law on Audiovisual Communication (LGCA).
The Battle Over Gambling Advertising
Spain’s journey with gambling advertising restrictions has been tumultuous. Initially, the Royal Decree imposed stringent limitations, curbing the freedom of gambling operators to advertise their products.
However, an appeal by Jdigital, the online gambling trade association, resulted in the Supreme Court partially annulling the ban. This victory allowed operators to employ various marketing tactics, including social media endorsements and celebrity endorsements.
Yet, the pendulum swings once more. Pablo Bustinduy, the country’s minister for social rights and consumer affairs, recently announced plans to reintroduce certain restrictions on gambling ads. This move reflects ongoing concerns regarding the societal impact of gambling and the need for regulatory oversight.
The Proposed LGCA: What It Means for Operators and Influencers
The draft bill, LGCA, represents a concerted effort to rein in gambling advertising and regulate social media influencers more effectively. Notable provisions include:
- Stricter Regulations on Gambling Ads: The proposal seeks to reimpose restrictions on gambling ads, aligning with the country’s Royal Decree on Advertising. This includes limitations on ad content and timing, aiming to shield vulnerable demographics from exposure to gambling promotions.
- Oversight of Social Media Influencers: Recognizing the influence wielded by social media personalities, the LGCA outlines requirements for content creators to register with the State Registry of Audiovisual Providers. This registration aims to ensure compliance with regulations and protect younger audiences from inappropriate content.
- Enforcement and Penalties: The draft bill introduces hefty fines for non-compliance, ranging from €10,000 to €150,000. These penalties underscore the government’s commitment to enforcing regulations and holding both operators and influencers accountable for their advertising practices.