Every expert and authoritative voice that knows the state of modern-day gambling knows that a strong regulatory framework is the only way to guarantee a stable market. A strong understanding of the gambling market is an absolute necessity in any case.

Offshore licences have been prevalent globally, but important local markets have started understanding the importance of centralised legislation. Two of the most pertinent cases are those in Spain and the UK. These two old rivals have decided to prioritise central gambling laws and decided to embrace the gambling industry properly.

In this article, we will point out the primary legislative edifices that make this comparison relevant. Both of these frameworks are the direct result of a respective Gambling act.

At first, we will inform, or remind, you about when and how these pieces of legislation came to be. Afterwards, we will showcase the similarities and differences that would make for a good comparison.

This article is a streamlined outlook and is an entry into these legislative contexts. Further research would benefit anyone who has a tangible interest in gambling regs.

The regulation of these markets – A short timeline

Let’s begin with the moment zero of UK gambling laws. After a period of legislative deliberation, the UK decided to adopt a codified and well-defined set of laws and measures dedicated to the legalisation of gambling. This is how The Gambling Act of 2005 came to be.

The British GA adopted a set of measures that created a framework and its implementation. Firstly, it defined what exactly qualifies as gambling, created a regulating entity, and set specific operating standards. Secondly, it tied The Crime Act of 2002 and The National Lottery Act of 1993 into this regulatory context.

While its arrival later, the Spanish Gambling Act of 2011 was just as much of a breakthrough. There have been Spain laws addressing gambling, but none were national legislation. Just like in the British case, Spain’s GA defined the details needed for the act of Gambling.

This piece of legislative clarity allowed the Spanish market to expand healthily. The market projects that Spanish online gambling will almost reach the $2 billion mark in 2024. In the UK, the market is bigger, with a projected $14 billion in 2024. The figures all follow Statista estimations.

Similarities

The singular Gambling Act to tie all the facets of gambling is the main method of drawing a similarity between Spanish and British legislation. This method of ensuring a fair methodology of operating while being extremely direct in defining gambling leaves little to no room for error or interpretation.

As stated above, we will start with the similitude and understand why they work in their respective legislative models.

Strict licence-based legislation

In the UK, any operator who wants to provide gambling services to British citizens must have an online, land-based, or ancillary licence. While the first two categories are clear in their denomination, the ancillary one is treated with telephone and email wagering. These two avenues could’ve represented regulatory blind spots if not treated carefully.

The process of acquiring a licence must entail having clean criminal records and satisfying age-related requirements. Moreover, the operator who wishes to have a licence must prove that they have the financial means to actually sustain such a business.

The licence is awarded by the United Kingdom’s Gambling Commission (the UKGC) – one of the spawns of the 2005 GA. It oversees regulated aspects like marketing practices, operations, and finances, and even micromanages the details of mere promotional tools like free spins no deposit win real money opportunities.

These standards apply to the Spanish context as well. The General Directorate for the Regulation of Gaming Activities (DGOJ) is the overseer in this case. The organisation does the same work in awarding licences.

In both cases, the company can operate offshore, as long as they meet the standards of the regulator and offer services via the aforementioned licence.

Strong AML stance

This section will be curt because it follows a universal principle: anti-money laundering. Theoretically, all the gambling regulators apply this principle and have this objective. In practice, it’s significantly harder than it appears without tight control.

Both the DGOJ and the UKGC are very vigilant about the parties that invest considerable amounts of money in gambling entities. As such, they share a similar ethos of enforcing the AML standards and ensuring that only legitimate money flows through licenced gambling companies.

Differences

The main differences we’ve identified are somewhat important on a theoretical level, even though they do not differ so wildly.

The possibility of territorial divergence

The UKGC has absolute authority over all the possible and existing gambling matters in the entire Kingdom. Despite the territorial makeover, all the constituents must follow the same set of rules.

Despite not being a practice, divergence is entirely possible at a regional level in Spain. Its 17 autonomous territories can exert different standards over the operators that provide gambling services in their territories. However, this only applies to land-based casinos since they are the operators that provide services within the confines of a local jurisdiction.

Online gambling is still a nationwide matter from a legislative point of view. However, the possibility of divergence is still an open door for specific territories to create precedents. While there have been secessionist sentiments in both countries, Spain’s legislation can open the door for this kind of differentiation.

Spain’s strong emphasis on exclusive lottery rights

Yes, both countries have state-owned lotteries that operate according to the overarching legislative framework. However, Spain has a very specific system that sees it as different from the UK model.

The Spanish lottery context sees only two accepted entities that run the practice. The ONCE (Organización Nacional de Ciegos Españoles) and the state-run SELAE (Sociedad Estatal Loterías y Apuestas del Estado). These two have, by legislative definition, exclusive rights to provide lottery services.

This case is unique to Spain in our comparison. In the UK, the national lottery is part of a different regulation than private or societal lotteries and does not include exclusivity.

Conclusion

Our conclusion must point out that both Spain and the UK are positive examples of why and how gambling regulations are so crucial. Their tight and specific standards help players access gambling services of the highest quality. As such, do remember that gambling comes with risks regardless of service quality, so play responsibly!