In April 2024, the Supreme Court of Spain partially repealed the Royal Decree on commercial communications of online gambling activities, which was issued in November 2020. The main change is that the operators are now allowed to offer welcome bonuses and other promotions to attract new customers, which was previously banned. This change has brought some major impacts to operators and affiliates in Spain.
We spoke with Eduardo Riol, Founder and CCO at Apuestasfree, a leading affiliate website in Spain, about these exciting changes, who told us that "with the change in regulation, we have noticed an increase in the acquisition of new users, as well as the conversion of old users to depositors. We believe that it is a unique opportunity to grow again at high rates!”
With this kind of excitement around the market, we break down the changes and how they’ll affect operators, affiliates, and the deals they broker together!
Impact on Operators' Strategy
Before the updated ruling, operators in Spain were more open to flat fee deals with affiliates, which guaranteed them a top position on popular websites. This was because they could not compete with their welcome bonuses, meaning brands had to rely on brand recognition and loyalty.
However, with the new rule, the operators are less keen on flat fee deals, as they prefer to compete for users with more attractive welcome bonuses and promotions. Some operators are even open to offering exclusive welcome bonuses to their top affiliates.
Impact on Affiliates' Commission Preferences
Affiliates prefer to work on cost per acquisition (CPA) and hybrid deals with a higher CPA portion. This allows them to feel more confident in generating new sign-ups with the welcome bonuses. However, this also means that affiliates must monitor the quality of the traffic they send to the brands, to maintain a long-term partnership which is profitable for both sides.
Impact on Displayed Advertisement
In the past, logos were the most seen advertisement on affiliate websites, as they could not display any welcome bonuses or promotions. Now, operators can create more eye-catching banners to highlight their welcome bonuses and promotions, which they’ve begun to do. Additionally, this means that affiliates have to update their websites and content to reflect the new offers, and they may also have to comply with regulations and guidelines on responsible gambling and advertising.
Impact on Non-DGOJ Licensed Brands
As the Dirección General de Ordenación del Juego (DGOJ) is the regulatory body for online gambling in Spain, only operators that have a license from the DGOJ can legally operate in the Spanish market. However, there are also some non-DGOJ licensed brands that target Spanish customers, who have been promoting bonuses in the past while regulated brands could not. These brands are facing more challenges, as the new rule makes the DGOJ licensed brands more competitive and attractive with welcome bonuses, while they may also face more scrutiny and enforcement from the authorities.
New Opportunities for Affiliates
Online gambling advertising rules are becoming more relaxed in Spain and this is attracting more affiliates to enter this market. For affiliates, the new rule means that they’ll have to adjust their websites and content to reflect the updated offers and promotions from the operators. They also must monitor the performance and conversion of the different brands, as some may gain more market share and others may lose it.
Apuestasfree's Riol added on this idea, saying "we will adjust our website to adapt for the new regulations, as in the past we couldn't put bonus information before. Now that we can show banners with the welcome bonus information, it will help raise awareness about the unique offerings of each bookmaker and casino."
Conclusion
The recent Supreme Court announcement on iGaming in Spain is a significant change for the online gambling market, and it affects both affiliates and operators. The new rule allows operators to offer welcome bonuses and promotions, changing their practices on strategy, preferences, and advertisements.
Affiliates will need to adapt to the new situation, as they may face more opportunities and challenges, while non-DGOJ licensed brands are also facing more pressure and risks. The new rule also shows a more friendly attitude towards online gambling in Spain, which may indicate there’s great potential in the iGaming market’s future.
