Spain: Over 65 million euros in fines against gambling providers in the first half of 2024 alone

Of course, violations of gambling laws are not only a problem in Germany. Various offenses are also committed in other European countries. The penalties can be enormous, depending on the offense, but usually no amounts are disclosed. In Spain, however, the responsible ministry regularly publishes specific figures. The report for the first half of 2024 is truly impressive: unlicensed providers in particular had to pay several million euros in compensation.

The Dirección General de Ordenación del Juego (DGOJ) is to Spain what the Joint Gambling Authority of the German federal states (GGL) is to Germany - and with impressive rigor. The Spanish regulatory authority, which operates under the umbrella of the Ministry for Social Rights and the 2030 Agenda, ensures that illegal practices do not have an easy time of it. A recent report for the first half of 2024 impressively underlines the consistent approach: more than a dozen providers were penalized for serious and very serious violations - with a total sum of over 65 million euros.

By way of comparison, the German gambling supervisory authority also relies on transparency. For example, in the late summer of 2024, the GGL expressed its gratitude for 1,500 anonymous tips in connection with suspected cases of illegal gambling. In the course of this, it was announced that 133 prohibition proceedings had been initiated in 2023 and 63 providers of illegal gambling or advertisers had been persuaded to cease their activities. It was only in December that the GGL provided deeper insights into its day-to-day business.

But while the GGL takes a rather diplomatic approach, its Spanish colleagues are not afraid to go on the offensive. The publication of many details - from the amount of the fines to the names of the companies - acts as a public example. With this course, Spain is indeed heading for record figures in terms of fines in 2024. One thing remains clear for gambling providers: those who break the rules in Spain will ultimately lose out - and their wallets will definitely be lighter.

13 illegal providers fined millions

The DGOJ leaves no doubt as to how serious Spain is about regulating the gambling market. In the first half of 2024, a total of 15 decisions were made regarding infringements, 13 of which were issued for particularly serious violations of the law.

The consequences are drastic:

• Each of the 13 operators was fined €5 million, which adds up to the impressive €65 million that has already set a record.
• But that's not all - for the next two years, the companies are no longer allowed to carry out any activities in the Spanish market - in other words, they are not allowed to apply for a license or operate in any other form.

The DGOJ is thus taking targeted action against foreign online providers that operate in Spain without a license and blatantly disregard the Gambling Regulation Act (Ley de Regulación del Juego, LRJ). The penalties are intended to serve as a clear warning that uncontrolled offers have no place on Spanish soil.

The current list of sanctioned companies includes some internationally renowned names:

1. Interactive Pro
2. Stars Cream
3. Loveca Sino
4. Rougeca Sino
5. Mountberg
6. Alimanieri
7. Goldenpharaoh
8. Goldenlion
9. Golden Genie
10. Bigwins Games Tech
11. Games & More
12. Gladiator Holding
13. Bostock Enterprises

These providers, some of which have a global reach, were all caught operating games of chance in Spain without the necessary license. The violations are likely to include various areas - from unauthorized advertising to a lack of consumer protection compliance. Speaking of which: Bavarian radio recently revealed Berlin's links to illegal online casinos - but the burden of proof is less clear than it seems.

License does not protect against punishment: legal operators are also affected

The DGOJ shows that licensed gambling operators are also being closely scrutinized. In the first half of 2024, two companies with official licenses were found to have committed serious violations that did not go unnoticed by the authorities.

Codere and Electraworks, both established names in the online gambling and betting sector, were targeted by the regulators.

In the current case, the following infringements were classified as "serious":

• Inadequate compliance with consumer protection requirements: regulations designed to protect players from excessive risk were not consistently implemented.
• Irregularities in advertising: Advertising messages that do not fully comply with legal requirements are a thorn in the side of the authorities.

The sanctions for these offenses were less drastic than for illegal providers, but are still likely to be severe for those responsible:

• Codere and Electraworks must jointly pay fines of 325,000 euros.
• The authority makes it clear that even licensed companies are under constant observation - a clear signal for the entire market.

Incidentally, the Netherlands has also recently attracted attention for its consistent action against gambling violations.

Spain has been pursuing a tough sanctions policy for several years now

Spain is getting serious - and not just yesterday. A decisive amendment to the law came into force back in 2021, giving the gambling supervisory authority a sharp sword to wield. Since then, the DGOJ has implemented its mission with impressive consistency. The figures speak for themselves:

A look at the statistics shows the development:

• 19 sanctions in the second half of 2021
• 73 in 2022 - a record year in terms of the number of infringements
• 30 in the first half of 2023
• 17 in the second half of 2023
• 15 in the first half of 2024

What is striking is that the number of sanction payments has already exceeded 65 million in recent years (in 2023, for example, it was over 80 million). In comparison, however, you can see that in 2024 there is already a truly enormous sum on the "penalty account" for only relatively few offenses, which so far only relate to the first half of the year.

This trend suggests that 2024 has the makings of a record year. If the trend continues, the DGOJ could end the year with a total that eclipses the previous record figures. Whether this actually happens, however, will probably not be known until spring 2025.

Source of the image: https://pixabay.com/illustrations/glut-of-money-500-euro-euro-stack-432688/

Central text sources: https://www.dsca.gob.es/es/comunicacion/notas-prensa/consumo-sanciona-15-operadores-juego-infracciones-graves-o-muy-graves#, https://www.gluecksspiel-behoerde.de/de/news/389-erfolge-auch-dank-oeffentlicher-hinweise