Key Moments:
- The Court of Justice of the European Union has confirmed the legality of restrictions on gambling venues in the Valencian Community
- Operators had argued that rules on venue distance and licensing infringed upon EU principles of market freedom
- The Spanish court has been tasked with assessing the proportionality of individual measures
Judicial Support for Regional Regulation
The Court of Justice of the European Union (CJEU) ruled that Valencia’s restrictions on gambling halls and slot machines comply with EU law. The October 16 decision confirmed that regional authorities can create rules to protect public health and curb addiction. These may stand even if they limit market entry under Article 49 of the Treaty on the Functioning of the European Union (TFEU).
Industry Pushback Against New Rules
Meanwhile, the ruling followed legal challenges from gaming firms, trade associations, and manufacturers. These groups argued that Valencia’s distance and licensing rules violated EU freedoms of establishment and service provision.
The disputed legislation—Law 1/2020 and Decree 97/2021—sets an 850-meter distance between gambling outlets and schools. It also enforces a 500-meter gap between gaming locations and establishes a five-year moratorium on new licenses. Operators said the measures were excessive, noting that other safeguards—like youth entry bans and strict advertising limits—were already active.
| Regulation | Requirement |
|---|---|
| Venue-to-school distance | 850 meters |
| Hall-to-hall separation | 500 meters |
| License moratorium | Five years |
Public Health Prioritized Over Market Access
Valencia defended the rules as vital to prevent gambling outlet saturation and protect vulnerable groups. The CJEU concurred, stating that while market access is restricted, the rules serve “overriding reasons of public interest” related to safeguarding consumers and reducing harm.
The court noted that EU Member States have significant latitude in regulating gambling due to its inherent social and ethical dimensions. Rising venue numbers and more addiction cases in Valencia persuaded the court to uphold the region’s tighter controls.
The judges added that advertising curbs and entry limits alone can’t replace distance rules, which directly address youth exposure and the normalization of gambling.
Further Assessment Delegated to Spanish Court
Although the CJEU upheld the broader framework, the Spanish court must now decide whether each restriction is proportionate and truly serves public health goals.
The court dismissed arguments about unfair treatment between public and private operators, citing a lack of supporting evidence.
Overall, the ruling reaffirmed the EU’s stance that Member States may enforce strict gambling controls to protect public interest, even when market access is limited.
- Author
Daniel Williams
