Spain’s Gaming Regulator Wants Greater Control Over Lottery Sales

Posted on: January 19, 2023, 12:46h. 

Last updated on: January 19, 2023, 02:50h.

Erik Gibbs Read More
Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

In keeping with the global mantra that tighter gambling restrictions are necessary, Spain’s gaming regulator continues to respond. This time, the Directorate General for the Regulation of Gambling (DGOJ, for its Spanish acronym) is targeting the country’s lottery ecosystem.

A sign for lottery products hangs outside a shop in Spain
A sign for lottery products hangs outside a shop in Spain. The country’s gaming regulator is planning on introducing tighter regulations for the lottery segment. (Image: Ciudad Noticias)

The DGOJ, which reports to the Ministry of Consumer Affairs, has been proactively introducing new rules for the gaming industry for the past couple of years. However, for the most part, lotteries were never part of the equation.

That could change under draft rules the regulator is proposing. Lottery operators and their third-party vendors might have to comply with some of the same requirements the DGOJ puts on iGaming and sports betting.

Time-Out for the Lottery

Under the terms of the draft resolution, lottery operators would need to establish age verification procedures through the Spanish national databases the gaming industry currently uses. They would also have to notify of-age individuals on exclusion lists and underage consumers that they cannot purchase lottery products.

Additionally, the lotteries would have to incorporate an official seal on their website that proves the platform is authentic. There are two primary lottery operators in the country: the State Society for State Lotteries and Bets, and the National Organization of the Spanish Blind.

There are many rules that third-party vendors will have to follow. The primary operators will have the responsibility of ensuring that those vendors are in compliance. The two lottery organizations contract with certain commercial establishments and individuals to sell their products.

Another new draft regulation would extend the provisions of the Spanish Gaming Law, which was passed in May 2011, and a Royal Decree from 2020. As a result of these initiatives, gambling operators had to implement advertising restrictions, which included a watershed ban on TV and radio advertising. Those same rules would now apply to lottery operators and their vendor partners.

The proposed changes are the result of an increase in lottery participation. Lotteries everywhere are popular with consumers, though they don’t often receive the same attention as other types of gambling from regulators or legislators.

The DGOJ is already accepting input from the industry. Anyone who wants to give feedback has until March 1 to do so.

Gambling Drives the Economy in Spain

Spain’s gambling industry, including the lotteries, has a large financial impact that reaches almost €42 billion (US$45.44 billion) per year, according to the Ministry of Finance. This is much higher than the restaurant sector, which provides between €35 and €40 billion (US$37.87 and $43.28 billion) a year.

The DGOJ has been actively pursuing new regulations for the market. It has increased its collaboration with the country’s various autonomous communities in an effort to streamline oversight and align player protections.

Even before the regulator increased its focus, Spain enjoyed a safe and valuable gambling market. It ranks low in terms of problem gambling rates, at around 0.25%, and high in terms of its contributions to the country’s budget.