Stable taxation and rising casino demand continue to drive the sector, but tighter rules and a sizeable unregulated market are testing operators’ long-term competitiveness
Spain’s online gambling sector has established itself as one of the most mature and fastest-growing markets in Europe, yet it is increasingly operating at a critical juncture. On the one hand, the industry benefits from a stable and relatively competitive tax framework, a large and engaged player base, and steady post-pandemic growth. On the other, an ever-tightening regulatory regime and the persistent expansion of unlicensed operators are creating significant strategic and compliance challenges for licensed businesses.
Despite regulatory uncertainty, particularly around advertising and marketing, the market has demonstrated notable resilience. According to Eduardo Morales Hermo, Senior Advisor at Ficom Leisure, the sector has rebounded strongly since the pandemic, with momentum accelerating from late 2023 onwards. He notes that online casino products are the primary growth engine, with slots dominating player preferences, followed by live roulette. While sports betting remains popular, it is less profitable due to intense competition and thinner margins.
Morales Hermo also highlights the advantage held by operators with established land-based operations. Groups such as Sportium, Codere, Luckia, Casino Gran Madrid, Casino Barcelona, and Orenes Group have successfully leveraged their retail presence and brand recognition to sustain and grow their online businesses. Importantly, this growth has continued despite the advertising, sponsorship, and promotional restrictions introduced in 2020, underlining the sector’s ability to adapt to tighter controls.
A key pillar supporting the market is Spain’s tax regime, which is widely viewed as predictable and relatively operator-friendly. Patricia Lalanda Ordóñez, Partner at Socio, explains that Spain has implemented reforms that favour licensed operators, including significant tax incentives in the autonomous cities of Ceuta and Melilla. Operators genuinely established in these territories benefit from a reduced 10% tax on gross gaming revenue, compared with the standard 20% rate applied on the mainland. The policy is designed to attract investment, create jobs, and encourage companies to base strategic operations within Spain.
The broader government strategy, Lalanda Ordóñez adds, focuses on attracting technology-driven investment and providing legal certainty to support sustainable growth across digital industries, including gaming. Alberto Rodríguez, Partner at Bird & Bird, echoes this view, arguing that stable taxation combined with targeted regional incentives enables operators to reinvest, strengthen the regulated market, and ultimately increase public revenues over the long term.
However, regulatory pressure continues to intensify. JDigital, Spain’s leading online gambling trade association, has repeatedly warned about the unintended consequences of restrictive policies, particularly the migration of players to unlicensed platforms. Its 2024–2025 report estimates that the unregulated online market reached €231 million in 2024, representing around 16% of the size of the regulated sector.
The association cautions that younger players are especially vulnerable to being drawn to black-market sites, often without understanding the risks or the lack of consumer protection. JDigital has therefore called on policymakers to strike a more balanced approach, strengthening the licensed market while intensifying efforts to combat illegal operators. As Spain’s online gambling industry continues to grow, its future success will depend on maintaining this delicate balance between robust regulation, fair taxation, and effective enforcement.
