Spain Issued Record Penalties Against Gambling Companies in 2024

Spain Issued Record Penalties Against Gambling Companies in 2024

Cracking Down on Unlicensed Gambling Operators: Spain Imposes Record €142.7 Million in Fines(Article revised by Angela Burke, originally published on 09.05.2025, updated on 09.05.2025)

• Spanish Authorities Tighten Grip on Illicit Online Gambling
• 26 Providers Slapped with Heavy Sanctions, Including 14 Unlicensed Operators

Spain is taking a firm stance against unauthorized online gambling providers, dishing out a hefty €142.7 million in fines.© Alex Azabache/Pexels

Record Fines for Unlicensed Operators in 2024

Following the rules set by the Spanish Ministry of Social Security and the Spanish gambling regulator Dirección General de Ordenación del Juego (DGOJ), Spanish authorities have issued a staggering €142.7 million in fines to 26 gambling operators in 2024[1]. As much as €77.4 million of the total were imposed in the second half of the year.

Of the 26 penalized operators, 14 have no valid Spanish license, and over a dozen were slapped with millions in fines[1].Repeat offender Techsolutions Group NV was hit with a hefty €10 million fine and a two-year ban[1]. Additionally, the offenders' websites are blocked, preventing them from operating in Spain for the foreseeable future[1].

At least three of these companies hold licenses issued in Curaçao, which, according to Spanish law, does not grant them the right to operate in Spain[1].

Situations similar to this have unfolded in countries such as Germany, where operators have attempted to use the European freedom of service directive to justify offering illegal services[3].

Licensed Operators Feel the Heat Too

Alongside unlicensed operators, 12 companies with a valid Spanish gambling license have received sanctions for serious violations of the law[1]. These fines amount to €2.396 million and affect companies like 888 Online Games España SA and Casumo Spain PLC[1].

The offenses committed by these operators range from a lack of compliance with player protection measures, advertising regulations violations, to incomplete or erroneous data transmission to authorities.

Since a 2021 law reform in Spain, any serious violations of gambling law are made public. In total, 180 sanctions with a combined worth of over €475 million have been enforced[1].

Why the Appeal of Curaçao Licenses?

Curaçao is a low-regulation and tax-friendly jurisdiction, making it attractive to gambling operators who prefer to bypass European regulations[2]. While licenses issued in Curaçao allow global operation, they are not acknowledged in many countries, including Spain[2]. This means that players are unprotected when using these sites[2].

Spain requires operators to have a base in the EEA and hold a Spanish license to legally operate in the country[2].

A Growing Market Demands Tougher Regulation

The harsh measures have been taken at a time when the gambling industry is rapidly expanding in Spain[4]. In 2024, Spain recorded a gross gaming revenue (GGR) of 1.45 billion EUR - a significant 17% increase compared to the previous year[4]. Sports betting accounted for 42%, and casino games claimed 38% of the total revenue[4].

To shield the market from exploitation, the DGOJ organized its first national anti-money laundering conference for the gambling industry in February[4].

Understanding the Curaçao Phenomenon

Reasons for Preference

• Easier and Cheaper Licensing Process:
  • Curaçao offers a straightforward, single master license that covers all forms of gambling, reducing complexity compared to European jurisdictions[5].
  • European countries often have more detailed and specific requirements tailored to different services, making it more challenging for operators[5].
• Regulatory Flexibility:
  • Curaçao is known for its lenient regulatory environment, enabling operators to offer generous bonuses and higher stake limits[6].
  • European countries typically have stricter regulations regarding stake limits and bonuses to protect players[5].
• Lower Costs and Greater Accessibility:
  • Curaçao licenses are generally more affordable and accessible compared to those in certain European countries[7].

Implications for Operators

• Greater Operational Freedom: Curaçao licenses provide operators with broader flexibility concerning game offerings and marketing strategies[6].
• Global Reach: Curaçao licenses let operators serve customers across various jurisdictions internationally, although recognition may be limited in some European countries[7].

Implications for Players in Spain

• Access to a Wider Range of Services: Players in Spain might access online casinos licensed by Curaçao, providing higher stakes and more generous bonuses. However, these may not necessarily abide by Spanish gambling regulations.
• Potential Risks: Players engaging with Curaçao-licensed sites may face fewer protections compared to those using European-licensed sites. As Spanish law might not cover disputes with offshore operators entirely.

In conclusion, while Curaçao licenses offer flexibility, players in Spain must take note of the regulatory context and potential risks when using offshore-licensed casinos. European-regulated sites usually provide more protections for players, but they are subject to stricter restrictions on promotions and stakes.

1. Despite the Curaçao licenses' appeal for low-regulation and tax-friendly jurisdictions, they do not grant the right to operate in Spain due to Spanish law.
2. The DGOJ, Spanish gambling regulator, is known to have a straightforward and affordable licensing process for operators compared to European jurisdictions.
3. Curaçao licenses allow operators to offer generous bonuses and higher stake limits, with a regulatory environment that is considerably more lenient than European countries.
4. The 2021 law reform in Spain increased public disclosure of any serious violations of gambling law, with 180 sanctions being enforced, totaling over €475 million.
5. The harsh measures taken by Spanish authorities against unlicensed gambling operators have been enacted during a time of rapid expansion in the gambling industry in Spain.
6. In 2024, Spain recorded a gross gaming revenue (GGR) of 1.45 billion EUR, a 17% increase compared to the previous year, with sports betting and casino games collectively accounting for 80% of the total revenue.
7. Operators with valid Spanish gambling licenses have also encountered sanctions for serious violations of the law, with fines amounting to €2.396 million and affecting companies like 888 Online Games España SA and Casumo Spain PLC.
8. Repeat offender Techsolutions Group NV was hit with a hefty €10 million fine and a two-year ban, in addition to having their websites blocked from operating in Spain.
9. Curaçao's implied flexibility and affordability may attract operators looking to bypass European regulations, which can result in unprotected players when using these sites.
10. The first national anti-money laundering conference for the gambling industry was organized by the DGOJ in Spain to protect the market from exploitation.
11. Although Curaçao licenses offer players a wider range of services, they may be at higher risks since these platforms may not abide by Spanish gambling regulations entirely.

Read also: