Impact of Spanish gambling regulations on online gambling behavior and marketing strategies

Author:

Aonso-Diego Gema1,García-Pérez Ángel2,Krotter Andrea3

Affiliation:

1. University of Deusto

2. University of Leon

3. University of Oviedo

Abstract

Abstract

Background. A large body of research has pointed out that advertising has an impact on gambling behavior. However, little is known about how gambling marketing regulations impact online gambling behavior and marketing expenditure. Recently, a Spanish law -the Royal Decree 958/2020- came into force, which, in general terms, limits the marketing of gambling products. The current study aimed to examine the effect of the Spanish Royal Decree 958/2020 on gambling behavior (i.e., new accounts, active accounts, deposits, and total money bet) and marketing expenditure (i.e., advertising, bonuses, affiliation, and sponsorship) based on data from the Directorate General for Regulation of Gambling. Methods. We used Seasonal Autoregressive Integrated Moving Average (SARIMA) models to examine the impact of the implementation of Royal Decree 958/2020 on both online gambling behavior and marketing expenditure. Results. The entry into force of the Spanish Royal Decree led to a permanent decrease in gambling behavior, in particular new accounts (-326k; p = .006) and total money bet (-€232M; p= .016). Additionally, regulatory measures had an impact on marketing strategies, specifically, reducing money earmarked for advertising (-€20M; p< .001), bonus (-€2.6M; p < .001) and sponsorship (-€5.3M; p< .001). Conclusion. These findings demonstrate that regulatory measures aimed at limiting gambling advertising, bonuses, and sponsorships have an impact on new accounts and total money gambled. This study can serve as a model for other countries where gambling advertisements have not yet been regulated.

Publisher

Springer Science and Business Media LLC

Reference77 articles.

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