The Supreme Court of Spain has overturned some parts of the ban on online gaming advertising contained in the Royal Decree 958/2020. The restrictions were challenged in court by the Spanish Digital Gaming Association, iGaming Business reported.
The law has been in force since November 2020. The purpose was to cut down on exposure of young people to gambling advertisements by banning sponsorship deals with casinos.
This inspired a lawsuit by the industry, which was rejected by a lower court last November. However, the Supreme Court overturned several parts of the law.
One of the measures thrown out was a restriction against advertising aimed at new customers. Operators will now be able to market to players who have had an account for less than a month. They can also advertise where public vendors sell lottery games.
Other measures tossed out were the prohibition on celebrities appearing in advertising, the prohibition on advertising on social media to adults over 18, and a ban on TV and radio ads except from 1-5 a.m.
The high court ruled that several parts of the law lack a legal basis. In its ruling it declared, “The ruling considers that advertising is part of the freedom of business and is subject to limits” but added, “However, such limits and prohibitions, insofar as they also affect the exercise of a lawful business activity, must have sufficient legal coverage, without being able to be regulated by independent regulatory standards unrelated to the criteria and limits set by the legislator.”
One part related to sports sponsorships of events, goods and services that can be viewed by minors was left in force.
Patricia Lalanda, a partner in the law firm that represented the gaming industry, LOYRA Abogados, commented: “When we received the judgment, the ruling of partial upholding of the appeal, annulling some of the most relevant articles of Royal Decree 958/2020 on commercial gaming communications, we were very surprised.”
Lalanda opined that it was unlikely that the industry would challenge the other limitations left in place. “I do not believe that it is now in the interest of the gaming industry or others affected to open new avenues of struggle against the limitations that are still in force,” she said.
The Royal Decree, drafted in 2020, was a principal policy of former Minister of Consumer Affairs, Alberto Garzon, who led that government’s reform of gambling law.
The trade body lawsuit alleged the Ministry skipped over some constitutional procedures by resorting to a regulation, rather than by legislation. The Supreme Court agreed that the decree did skip constitutional steps and “without due oversight.”
The court ruled that measures such as those must be set out by a specific law.
The Spanish parliament recently approved “Royal Decree on Responsible Gaming Environments,“ opening another round of reforms, with the aim of creating the most stringent oversight of the market in Europe.
Among its provisions is creation of a unified database for gamblers
