The Spanish High Court has partially overturned a legal challenge brought by the Spanish Digital Gaming Association (Jdigital) against Royal Decree 958/2020, removing restrictions including a prohibition on celebrity endorsements.

The High Court has reversed some limitations on gambling advertising, including a prohibition on celebrity endorsements.

Royal Decree 958/2020, which came into effect in November 2020, aimed to reduce the exposure of minors to gambling advertising in Spain by prohibiting sponsorship agreements, among other measures.

The legislation was met with strong opposition from the industry, and the Spanish Digital Gaming Association (Jdigital) contested the decree. The contestation was rejected by the Spanish Constitutional Court in November 2023.

However, the Supreme Court, in reviewing the law, has now repealed several measures outlined in the Royal Decree, partially upholding the contestation.

As a result, several measures have been overturned, including Article 13, which dealt with targeting advertising at new customers.

This means that Spanish operators will be permitted to market to players who have been active for less than 30 days. Operators can now also advertise in locations designated for the sale of lottery games and accessible to the public.

The Spanish High Court has invalidated numerous limitations on gaming advertising, including a prohibition on famous individuals appearing in commercials. The court determined that these limitations lacked a legal foundation.

Previously, the law prohibited celebrities, real or fictional, from appearing in gambling advertisements. It also banned gambling advertisements on video-sharing platforms such as YouTube. The court has now overturned these regulations, permitting operators to advertise on social media to users aged 18 and older.

The court also ruled against a restriction on advertising times, which limited advertisements on television, radio, and YouTube to the hours between 1:00 AM and 5:00 AM. Operators were also restricted to promoting their products only to existing social media followers.

Other limitations, such as online age verification and the prohibition of promotional bonuses, have also been overturned. However, these limitations could be waived if the advertisements were targeted at verified customers.

In 2021, Spain prohibited the use of celebrities in gambling advertisements and sponsorship of sporting events. However, the High Court’s ruling has now reversed this prohibition.

The court’s decision is a significant triumph for the gambling industry. It will allow operators to reach a wider audience with their advertising. However, it is crucial to note that the court’s decision does not mean that all forms of gambling advertising are now permitted.

This encompasses mentions of social standing, physical health, financial stability, or mental well-being.

Descriptions of money or opulent goods in advertisements are also forbidden. It is also against the law to imply that family and companionship should take a secondary role to gambling.

The highest court, in announcing its verdict on some of these measures, stated: “The ruling acknowledges that advertising is a part of commercial liberty and is subject to constraints.

“However, these limitations and prohibitions, as long as they also affect the conduct of legitimate business operations, must be adequately legally justified and cannot be regulated by independent regulatory standards that are not connected to the standards and restrictions established by the legislature.”

What is still prohibited in Spain?
Article 12 on sports sponsorship was not included in the revocation. This means that operators are still forbidden from promoting or branding for activities, products, and services that can be viewed by young people. Operators are still forbidden from sponsoring sporting events or broadcasts. Sponsorship activities related to sports venues are also still forbidden.

The Supreme Court’s decision has taken some by surprise.
The Supreme Court’s decision will provide a significant boost for Spanish operators and their clients to get work.

LOYRA Abogados, a Spanish law firm specializing in gambling, was involved in this historic ruling, assisting one of the litigants.

Patricia Lalanda, a partner at the company, expressed her astonishment at the news.

Lalanda informed iGB: “We were taken aback when we received the ruling, which partially upheld the appeal, nullifying the most significant provisions of Royal Decree 958/2020 concerning commercial gambling communications.”

“All signs pointed to the Supreme Court adhering to the same course after the Constitutional Court’s directive essentially declared that the constitutional issue had vanished with the amendment of the Gambling Regulation Law 13/2011. However, this was not the outcome; the judgment was unambiguous.”

Despite numerous revocations, the choice not to overturn restrictions such as sports sponsorship and time limits signifies that Spanish operators still lack complete liberty to advertise.

Nevertheless, Lalanda believes that the measures overturned by the Supreme Court should be adequate enough that further efforts to compel more revocations will not be endorsed.

“I don’t think it’s prudent for the gambling industry or other impacted parties to initiate new avenues to contest the restrictions that remain in force.”

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