What Separates the UK From the Spanish Market?

Posted by Harry Kane on Friday, February 5, 2021

While the UK has blazed a trail for other countries to follow from the perspective of online gambling, there’s no doubt that some nations are beginning to make up ground in terms of regulatory prowess and market size.

Take Spain, for example, which has sought to drive sustained growth in its iGaming market and even took the step of slashing the gross gaming revenue tax payable by brands by 5% as part of its 2018 budget.

In this article, we’ll appraise the core differences between the UK and Spanish markets, while asking which one has the most potential for the future.

1. You’ll Find Fewer Wagering Requirements in Spain

While the Spanish regulator has continued to build a regulatory framework to house the nation’s iGaming market, this sector has yet to mature fully in the same vein as the UK.

As a result of this, the Spanish market arguably places fewer restrictions on its virtual gambling audience, particularly from the perspective of welcome bonus structures and the wagering requirements imposed by individuals.

Remember, as iGaming in the UK continued to grow and the market became saturated with operators, casinos sought to distinguish themselves from their rivals with innovative and lucrative welcome bonuses.

Over time, wagering requirements were also introduced as a way of preventing spammers and problem gamblers from creating multiple accounts and cashing out without wagering, with these imposing strict terms of players and compelling them to play through a fixed amount of cash before being permitted to withdraw any winnings.

Wagering requirements can often be up to 60x the value of your bonus balance in the UK, creating sizeable playthrough amounts that some players may struggle to fulfil within the designated time period.

However, you’ll find that wagering requirements aren’t as prevalent in Spain, thanks to the relatively fledging nature of the iGaming market and less stringent regulatory measures.

In fact, most Spanish operators promote welcome offers that feature no-deposit bonuses which are completely free from wagering requirements, creating a more affordable and seamless experience for players across the board.

2. Responsible Gambling is a Key Market Driver in the UK

As we’ve already touched on, both the UK and Spain benefit from a regulatory framework that’s designed to empower market growth while simultaneously safeguarding players.

Both nations have also appointed a governmental body that’s responsible for ensuring the popular is gamble aware, and capable of providing assistance for vulnerable players and potential problem gamblers.

However, the UK Gambling Commission is far more established and focused in this respect, with the regulator having made the safeguarding of vulnerable players one of its core strategic objectives through 2021.

Since this was announced towards the end of 2017, a raft of regulatory changes have been rolled out to help protect problem gamblers, while the notion of ‘responsible gambling’ has also become increasingly prevalent as the number of active bettors in the UK has soared.

On a similar note, the UKGC guidelines now feature three key licensing objectives that support the rise of responsible gambling, with operators that fail to meet such criteria likely to face significant financial sanctions and (in the worst-case scenario) have their license revoked completely.

These objectives include ensuring that criminal activity is kept out of gambling, maintaining transparency and a sense of fair conduct and protecting children and vulnerable players from harm or exploitation related to betting activity.

This has compelled licensed and compliant operators to adopt responsible gambling tools and mantras in recent times, so that they can adequately meet their obligations and successfully identify instances in which players may need their assistance.

Of course, this need is partially rooted in the culture of gambling in the UK, where a relatively small number of high-stakes and VIP players have come to dominate the market and gamble regularly as a way of earning income. This puts more players at risk of developing problem behaviour over time, creating a huge challenge for operators and brands alike.

In contrast, the gambling culture in Spain tends to be a little less intense, with most players less interested in making money from gambling and instead choosing to wager as a form of light entertainment.

As a result of this, iGaming operators in Spain aren’t necessarily bound by a sense of social responsibility on behalf of their players, who are relatively free to wager their hard-earned cash and largely trusted to spend well within their financial means.

Of course, this could change as the market continues to grow and evolve in a similar manner to iGaming in the UK, with problem gaming more prevalent within high-growth and competitive markets throughout Europe.

3. It’s Easier to Apply for a License in Spain

Spain first legalised gambling back in 2011, and like the UK, their unified legislation makes it relatively easy for prospective casinos and bookmakers to apply for online licenses in both countries.

However, it has become a little harder to obtain a UK license in recent times, thanks in part to the aforementioned regulatory changes and the introduction of stringent objectives related to responsible gambling practices.

In Spain, the national regulator Dirección General de Ordenación del Juego (or the DGOJ for short) oversees all applications, while the country employs a so-called “double license” system to operate in the marketplace.

Firstly, operators are required obtain a general license to exploit online gambling (within predetermined opening periods as defined by the regulator), before requesting singular accreditations that correspond to the games and verticals that they wish to offer (such as sports betting, roulette, poker or slots).

While this may sound time-consuming, it’s usually a relatively a simple and straightforward process to acquire the necessary licenses in Spain, and this trend looks set to continue in the near-term.

In contrast, the UKGC is continuing to apply more stringent licensing criteria to applicants, particularly in terms of their social responsibility commitments and willingness to always safeguard the wellbeing of their players.

Not only this, but various factions of the UK government have also pledged to carry out a comprehensive licensing review in the near-term, establishing even more stringent criteria for new applications while also ensuring that existing license holders are compliant with the current regulatory guidelines.

This is something that really makes the Spanish market attractive from the perspective of international operators, particularly when you also consider the presence of tax-friendly enclaves such as Ceuta just off the mainland.