The Supreme Court of Spain’s decision marks a pivotal moment for the future of the gambling and marketing industries, as it nullifies the 2020 ban on gambling advertising on TV and the internet. This ban, which had completely prohibited marketing promotions for gambling operators from late 2020, has been declared illegal and unconstitutional.

The Supreme Court’s key findings include:

• The previous ban on gambling advertising was unconstitutional and illegal, violating EU standards
• The restriction on celebrities appearing in gambling TV commercials was also deemed illegal, infringing on freedom of speech
• It has been clarified that gambling operators may advertise online

This ruling carries substantial weight for the region, as it sets a precedent that will influence marketing and digital business practices across the EU and neighboring countries aligning their legislation with EU law. The decision underscores several critical points:

• Commercial advertising by gambling operators is a legitimate business activity protected under freedom of speech rights.
• Regulations governing the advertising of the gambling industry, and business practices in general, should not resort to disproportionate measures that exceed necessary standards for public interest protection, as was the case with the 2020 ban.
• The now-overturned restrictions lacked constitutional or legal justification, both at the national and EU levels (reaffirming the principle of the freedom to provide services).
• Such measures, as recently repealed, hinder the free operation of Spain’s gambling industry, which contributes significantly to the national economy both directly and indirectly.

Other EU members, as well as EU candidate countries will be expected to align their laws and regulations with EU legal frameworks, including those governing gambling and commercial advertising standards.

The Spanish example offers a valuable precedent for best practices at the EU level, effectively balancing consumer protection with the economic sustainability of businesses, which is a core EOGL principle.

The Supreme Court’s decision to lift these bans demonstrates that high standards of protection for minors and vulnerable groups can be maintained without unduly restricting the commercial interests of gambling companies.

Attracting more licensed operators and improved consumer channelling rate are the rationale behind the decision made by the Government, subsequent to the months of lobbying performed on behalf of the nation’s leading operators, the process firstly resulted in passing the new Gaming Bill back in 2011 and opening of a subsequent licencing windows.

The projected change in budget structure is to be applied to fixed-odds sports betting, betting exchanges and fixed-odds horseracing, but also to online casino, poker and bingo.

However, there is a massive road ahead of this reform, as the ruling party struggles to assure the absolute legislative majority needed for the passing of the Bill in light of the country’s ongoing political crisis. Furthermore, the Spanish division of competence is such that the federal authority is in charge of lotteries and complete online gambling offer, whereas retail offer is under the jurisdiction of regional territorial units.

The legislative process is expected to last at least one month, with the new tax regime to enter into force in summer this year.