Key Moments:
- Since late 2023, the market has grown steadily, led by strong casino game performance.
- Licensed operators in Ceuta and Melilla benefit from a 10 percent tax rate, compared with 20 percent on the mainland.
- Unregulated online gambling now totals €231 million, equal to 16 percent of the legal market.
Market Momentum and Casino Performance
Spain stands out as a mature yet fast-growing gambling market in Europe. Since the pandemic, the sector has rebounded strongly and adapted to tighter marketing rules. According to Eduardo Morales Hermo, senior advisor at Ficom Leisure, market momentum has continued to rise since late 2023. Casino products now drive most of this growth.
In particular, slot games lead player engagement, while live roulette also attracts strong interest. Meanwhile, sports betting remains popular but faces tighter margins due to heavy competition. Even so, major land-based brands such as Sportium, Codere, and Luckia continue to fuel online growth. As Hermo noted, operators adapted quickly despite advertising and sponsorship limits introduced in 2020.
Tax Climate and Regional Advantages
At the same time, Spain’s tax framework provides stability for operators. Speaking to iGaming Business, Patricia Lalanda Ordóñez of law firm Socio explained that recent tax updates favor licensed companies. Since 2018, Ceuta and Melilla have offered a reduced 10 percent tax rate. In contrast, the mainland applies a 20 percent gross gaming revenue tax.
According to Lalanda Ordóñez, these incentives actively encourage operators to establish and maintain operations in the two autonomous cities. As a result, the regions have become attractive hubs for licensed gambling businesses.
| Region | Tax Rate (% GGR) |
|---|---|
| Ceuta & Melilla | 10 |
| Iberian Mainland | 20 |
Regulatory Pressures and Policy Shifts
However, Spain’s stable tax environment exists alongside increasing regulatory pressure. JDigital highlighted these challenges in its 2024–2025 report. Notably, unlicensed operators now pose a serious threat to the market. The association estimates that unregulated gambling accounts for €231 million, or 16 percent of regulated activity.
Another key shift involves consumer messaging. Authorities have replaced generic “play responsibly” notices with stronger addiction warnings. Juan Carlos Guerrero of Ecija warned that these messages could deter casual players. He also suggested they may reduce conversion rates on licensed platforms.
Business Impact and Consumer Behavior
Furthermore, Guerrero explained that marketing restrictions have limited acquisition efficiency. As a result, operators now focus more on retention and product innovation. While public health remains a priority, these constraints reshape commercial strategies.
Similarly, Lalanda Ordóñez cautioned that further restrictions could push players offshore. If licensed platforms become harder to access, consumers may seek less regulated alternatives that offer fewer barriers.
Ongoing Legal Developments
In 2024, Spain’s Supreme Court overturned parts of Royal Decree 958/2020. The ruling lifted bans on celebrity endorsements and welcome bonuses. Despite this, Guerrero stated that regulators continue to introduce new rules with limited industry consultation.
Moreover, the DGOJ has attempted to reinstate some annulled measures. Lalanda Ordóñez described current discussions as “meaningless dialogue.” She warned that regulators may reimpose restrictions without proper negotiation, increasing uncertainty for operators.
- Author
Daniel Williams
