Strict marketing restrictions introduced by the Spanish government have led to a significant decline in new online gambling accounts, according to new research. 

A study published by Harm Reduction Journal revealed that new player registrations fell by 55 percent between 2020 and 2023, largely due to advertising curbs and a ban on welcome bonuses.

Advertising and Bonus Restrictions Impact Engagement

In 2020, tightened rules reduce player engagement under the Royal Decree. These included a ban on welcome bonuses for new players, limits on advertising hours, and a prohibition on using celebrities or influencers in promotional material. Gambling adverts were also restricted on platforms like YouTube, and sponsorships by gambling companies were prohibited. 

The measures had an immediate impact, with the number of new online gambling accounts dropping from 3.01 million in 2020 to 1.35 million in 2023. The sharpest year-on-year decline was in 2022, evidenced by a 35% fall in new sign-ups to 1.37 million, from 2.61 million in 2021. The study noted that the restrictions were introduced after five consecutive years of growth.

Court Overturns Key Measures in 2024

In April 2024, Spain’s Supreme Court partially overturned several components of the Royal Decree. This decision followed a legal challenge by the Spanish Digital Gaming Association. Article 13 (prohibits marketing to new customers) and Article 15 (bans the use of celebrities in gambling ads) were among the overturned rules. 

The ban on gambling advertisements on video-sharing platforms was also annulled. So, operators can reintroduce targeted promotions, potentially reversing some of the effects on user acquisition. However, the long-term impact of the initial restrictions on consumer behavior remains evident. The drop in new accounts has been described by researchers as a lasting shift in response to the earlier changes.

Revenue and Player Spending Continue to Grow

Despite the reduction in new accounts, total deposits and betting activity increased between 2020 and 2023. Player deposits rose from €2.19 billion to €3.18 billion during the period, while the total amount wagered increased from €20.75 billion to €26.5 billion.However, a slight dip occurred in 2022 when total bets fell to €25.25 billion, but overall figures remained higher than pre-restriction levels. 

Advertising, bonus spend, and sponsorship budgets were also heavily impacted. Advertising spend fell from €193.7 million in 2020 to €116.5 million in 2022, before rising slightly to €122.8 million in 2023. Bonusing spend decreased from €189.5 million to €165.9 million over the same period. Finally, the sponsorship spend dropped sharply to €2.67 million in 2022 before rising to €3.59 million in 2023.