The Spanish Department of Consumer Issues has sent a notification to all the squads in the nation’s top soccer league, cautioning them that any wagering sponsorship agreements must be concluded by the conclusion of the 2020-21 campaign.
In the communication, Minister Alberto Garzón stated that this will occur in the upcoming days when the Royal Decree is published in the Official State Gazette, and all new associations between athletic teams and betting firms will be forbidden. All current sponsorship arrangements will persist during a transitional phase, but no longer than the end of the season, at which point they must terminate.
The department advised that teams who have recently signed new sponsorship deals that cover a period beyond the transitional phase will be deemed unlawful when the Royal Decree comes into force. Consequently, it has requested clubs to strive to modify their sponsorship contracts accordingly.
The letter asserts that market data reveals what it refers to as a “concerning situation.” It highlights that four years ago, approximately 29% of young individuals aged 18-25 began to engage in gambling activities, a figure that has climbed to 40%.
The server also asserted that the typical sum young individuals expend on wagering has escalated by 13% annually.
The document indicates that scientific data reveals that early-stage gambling is a forerunner to gambling-related detriments, and that a direct connection exists between gambling promotions and the percentage of new bettors.
The document stated this circumstance may have been intensified by the novel coronavirus (Covid-19) outbreak and the subsequent financial distress encountered by many. It emphasized that the most susceptible households might be inclined to perceive gambling as a means to mitigate their fiscal hardships.
The Spanish administration pledged to undertake this action last year and prepared to execute new limitations on gambling advertisements throughout 2020. Initially, new regulations implemented in February curtailed the broadcasting of gambling advertisements on radio and television between 1am and 5am, excluding advertising during live athletic events and real-money competitions.
At that juncture, athletic organizations were still permitted to sign sponsorship agreements with gambling enterprises.
However, these restrictions were subsequently modified in April, intended as a temporary response to the Covid-19 pandemic. These provisional plans, encompassing additional clauses prohibiting bonuses and athletic sponsorships, were incorporated into regulations, which were then submitted to the European Commission for authorization.
Outcomes released this month indicate that Spain’s online gambling market expanded by 17%.
The second trimester of 2020 exhibited a 7% surge in earnings compared to the corresponding period in the previous year. This expansion was fueled by online gambling establishments and poker competitions, which more than compensated for a decline in sports wagering.
Nevertheless, overall earnings for the three-month span concluding on June 30th amounted to €208.9 million (£189.2 million/$245.2 million), representing a 4.2% decrease compared to the initial quarter of the year.
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