This is the first study examining the impact of gambling marketing regulation, particularly the Spanish Royal Decree 958/2020, on online gambling behavior (i.e., new and active account numbers, total amount bet on online games, and deposits), as well as marketing expenditure (i.e., advertising, affiliation, bonuses, and sponsorship). Two findings were highlighted: 1) regulatory measures conducted in Spain led to a permanent decrease in gambling behavior, in particular new accounts and total money bet; and 2) the Spanish regulation had an impact on marketing strategies, specifically in reducing expenditures earmarked for advertising, bonuses, and sponsorship.
According to the data provided by the Directorate General for the Regulation of Gambling, findings indicate that the implementation of the Royal Decree has impacted online gambling behavior. Specifically, the number of new accounts showed a temporary increase of more than 177,000 in the first quarter of 2021 (January – March), two months after the approval of the Royal Decree. This temporary increase may be attributed to the increase in marketing expenditure following the approval of the Royal Decree, as sponsorship and promotions were to be regulated in the coming months. Studies have consistently shown that marketing is closely related to gambling behavior [15, 23, 24, 28, 58, 59], and particularly sponsorship and new accounts [60].
However, from the second quarter of 2021 (April – June), there was a permanent reduction in the number of new accounts on online betting operators and the total amount of money wagered. During this period, articles related to the limits on the number of deposits gamblers can make, self-exclusion systems, and the detection of risky behaviors came into effect. Additionally, advertising on television and radio was restricted to between 1 a.m. and 5 a.m. Although these regulatory measures impacted on new accounts, they did not affect the number of active accounts, or the deposits made. This could suggest that the regulatory measures affect non-gamblers, reducing the likelihood of initiating gambling behavior, but do not influence active gamblers.
There are several reasons that may explain why the Royal Decree has not had an impact on some variables of online gambling behavior has not been found. First, the most plausible explanation is that the impact of the Royal Decree on the number of active accounts and deposits will be observed in the long term. Also, although the legislative measures cover a large part of the marketing strategies of gambling operators, the gambling industry continues to advertise in different ways [61]. Gambling operators can advertise on their own channels (e.g., websites, social media profiles), and exploit the Internet advertising legal loophole (e.g., Twitch), despite knowing the negative impact it has, especially on the young population [62]. Additionally, promotions can be addressed to those gamblers who give their consent, and lottery products are exempt from this regulation, so they can be advertised in any media (e.g., television). Finally, although in Spain and other European countries, sponsorship of football events is not allowed, the Betano® bookmaker, for example, is an official sponsor of international competitions (e.g., Euro2024, 2024 Copa América) [63].
On the other hand, while it does not affect the amount deposited, the law has had a notable impact on the total amount wagered. It is important to highlight that the total amount wagered is a more sensitive variable that more accurately reflects engagement in gambling. Additionally, the law limits the maximum amount of money a gambler can deposit, specifically allowing for three limits: a maximum of €600 in one day, €1,500 in one week, and €3,000 in one month. These limits are remarkably high and, according to the results of the current study, these measures have not had a significant effect on the amount of money deposited, and indeed, have increased it beyond expectations.
With respect to the expenditure allocated to marketing, following chronological order, the implementation of the Royal Decree (in November 2020) caused a temporary increase in the money allocated to sponsorship by gambling operators. The prohibition of sponsoring football teams, jerseys, and stadiums in the following months (specifically in August 2021) led to a significant increase in spending on this marketing strategy before the end of 2020.
Conversely, the measures approved in the first quarter of 2021 (January - March) permanently decreased the money allocated to bonuses. As aforementioned, several articles came into effect aimed at regulating promotions and bonuses related to gambling, as well as the detection of risky behaviors, economic limits for deposits, the self-exclusion mechanism, and the prohibition of advertising in any media between 1 a.m. and 5 a.m. Subsequently, the provisions that came into effect in the third quarter (July - September) significantly reduced the money allocated to advertising and sponsorship. In addition to the articles that came into force in previous months, during this period (i.e., April - June) those relating to restrictions on promotions to attract new customers, the use of public figures in advertisements, and the limitation of commercial communications on social media, among others, entered into force. Additionally, provisions related to the sponsorship of gambling operators by public figures or of sports teams by the gambling operators were also implemented in July 2021. This means that no gambling operator can sponsor sports teams, nor can they appear on sports facilities or jerseys.
These results could be interpreted in light of previous experiences with other addictive behaviors. Tobacco control also led to a reduction in the total marketing expenditure by the tobacco industry in the United States, which increased exponentially until 2003 when it began to decline. The total marketing expenditure by the tobacco industry peaked historically in 2003, reaching over USD 21.088 billion, and then progressively decreased by 63.8% to USD 7.624 billion by 2019 [64, 65]. However, there was a change in marketing strategies. While advertising expenditure significantly decreased from 1975 to 2019 (by 88%, from USD 1.829 billion to USD 221 million), spending on promotions (i.e., discounts, free samples) increased by 45% from 1975 to 2019 (from USD 389 million to USD 564 million), and price discounting increased by 5,886% (from USD 144 million to USD 6.846 billion) [64]. As observed, the inflection point in the marketing strategy change occurred in 2003, coinciding with the implementation of the Framework Convention on Tobacco Control [66] and the Tobacco Master Settlement Agreement [67]. In this vein, researchers point out the need to learn lessons from other addictive behaviors to promote gambling regulations, both to enforce legal regulations that have been shown to work, but also to monitor, review, and change legal regulations as industry strategies change [9, 12, 68].
Despite the restrictions on affiliate programs (e.g., between 1 am and 5 am, not targeting minors, and including a "responsible gambling" label), no changes have been observed in this variable, unlike the changes seen in other marketing strategies. This could be due to the difficulty in controlling the content of affiliate programs (e.g., not linking gambling to success, hours of broadcasting, etc.) by the state, given the large number of accounts, their heterogeneity (in terms of platforms and content), and the difficulties in accessing them.
Marketing-related results have significant implications, as previous evidence indicates that promotions (i.e., bonuses) [28] and sponsorships [27] are two of the marketing strategies that most impact gambling behavior, especially among young people and gamblers [28, 69]. The gambling industry customizes its promotions to the characteristics of the gamblers (e.g., gambling frequency, sports they usually bet on) in a way that makes placing a bet more attractive. Promotions have been linked to various gambling-related variables, both subjective (e.g., normalization, risk perception) and objective (e.g., frequency, money gambled), [15, 22–24], suggesting that a decrease in the money allocated to bonuses will have a direct impact on gambling behavior, possibly affecting variables not examined in the present study.
Considering the results, it is crucial to emphasize the importance of effective legal regulation, rather than opting to promote self-regulation. It should be underlined that attempts by the gambling industry to self-regulate (e.g., corporate social responsibility, responsible gambling, how to restrict deposits) [70] have repeatedly proven ineffective in preventing gambling-related problems [71, 72]. This ineffectiveness is partly due to the focus on "problem gamblers" rather than the "problematic products" promoted by the industry. These self-regulation strategies are often used by the industry to delay the implementation of more stringent and necessary governmental regulations [73].
The findings of the current study have significant implications within the Spanish context, particularly in light of recent developments such as the Spanish Supreme Court issued ruling 527/2024, which nullified several key articles of the Royal Decree 958/2020 [74]. Among others, restrictions on bonus promotions, use of celebrities and advertising in social media were turned down, under the justification that those articles lack scientific evidence supporting their restriction. The interference of the gambling industry has been widely reported in previous studies [44, 75–77], and this is another example of industry litigation aimed at preventing regulatory measures from being implemented.
These results should be interpreted under several limitations. Firstly, the analysis is confined to data from the past ten years, that is from 2013 to 2023. Also, only three years have elapsed since the approval of the regulatory measures (i.e., November 2020), with a mere year and a half since the full implementation of all articles (i.e., August 2021). Furthermore, it is worth mentioning that the law was implemented progressively, with several articles coming into force at different times over almost a year (from November 2020 until August 2021). As a result, the analysis of the impact of the law as a whole is complex. In this vein, it was difficult to determine a point in time at which the effects should take place, as knowledge of the law may have had an effect earlier, or the entry into force of the law may have a longer-term effect. On the other hand, the study focuses solely on online gambling behavior, thereby excluding in-person gambling activities. Also, the study does not consider other relevant variables in the context of gambling research, which precludes an examination of potential mediating factors of the regulatory measures' impact, such as age, gender, or gambler profile (e.g., frequency, type of gambling).