Illegal Online Gambling Surges Across Spain, EY Study Reveals
A recent study by global consulting firm EY has brought to light a significant and concerning expansion of illegal online gambling in Spain. The unregulated market experienced a substantial 24.3% growth in 2022. This surge highlights escalating challenges for regulators and licensed operators alike. The study’s findings underscore a growing black market that directly impacts consumer protection and state revenue.
The report estimates the value of Spain’s illegal online gambling sector at €373.1 million for 2022. This figure represents a considerable 15.6% of the country’s total online gambling market. The study also determined that approximately 1.14 million players engaged with these unregulated platforms. On average, each player spent around €327 in 2022. This growth is attributed to both new individuals entering the unregulated space and existing players increasing their stakes.
Factors Fueling Unregulated Gambling in Spain
Several key factors are contributing to the alarming growth of illegal online gambling in Spain. The EY study points to the aggressive marketing tactics employed by unregulated operators. Unlike their legal counterparts, these platforms are not bound by stringent advertising restrictions.
Furthermore, there is a perceived lack of effective enforcement against illegal sites. This allows them to operate with relative impunity. Unregulated platforms often attract players with higher payouts and more attractive bonus schemes. This is possible because they evade taxes and licensing fees that burden legal operators. The Spanish Association of Online Gaming (AEJO) has consistently voiced concerns about this uneven playing field. They highlight the disparity between heavily regulated legal entities and the unbridled freedom of illegal sites.
Impact on Revenue and Player Safety
The proliferation of illegal online gambling carries severe consequences. Economically, the Spanish state lost an estimated €73.1 million in potential tax revenue during 2022 due to these unregulated activities. This substantial sum could otherwise support public services and initiatives.
More critically, illegal platforms pose significant risks to player safety. They operate without the necessary consumer protection measures, such as responsible gambling tools, age verification, and anti-money laundering (AML) protocols. Players on these sites are vulnerable to fraud, addiction, and data breaches. Licensed operators, by contrast, are mandated to implement robust safeguards to protect their users. The unchecked growth of the black market undermines these efforts and puts individuals at risk.
Calls for Stricter Enforcement and Regulatory Review
Industry stakeholders and experts are calling for urgent action to address this escalating problem. The EY study suggests that more stringent enforcement measures against illegal operators are crucial. This includes blocking access to these sites through international cooperation.
Additionally, there is a strong recommendation to review the existing regulations governing the legal gambling market. Some argue that the current framework, which includes advertising bans, strict deposit limits, and bonus restrictions, inadvertently pushes players towards unregulated alternatives. A more balanced regulatory approach could foster a competitive yet safe legal market. This would potentially draw players away from illicit platforms without compromising player protection. The goal is to strike an equilibrium that supports a viable regulated industry while effectively combating the shadow economy of online gambling.
Share This Article
Found this story interesting? Share it with your network!
