The use of Codere’s name in the headline of a recent ruling from Spanish regulators has been criticised as creating “an inaccurate and disproportionate impression”, according to Fernando Martín, Partner at Loyra Abogados.

Codere was among three regulated operators highlighted as the authorities announced sanctions worth €33.5m to 32 gambling operators in Spain. However, $30m of the total fines were attributed to six illegal operators.

The Spanish gambling group argued that its inclusion within the Ministry of Social Rights, Consumer Affairs and Agenda 2030’s headline alongside 888 and Betfair unfairly grouped them in with more serious offenders, given its fine totalled a measly €17,500 of the total figure.

Martín said: “For licensed operators such as Codere, 888 or Betfair, these cases relate to administrative compliance issues. They involve failures in technical controls, internal procedures or reporting obligations. They do not relate to illegal gambling activity.

“By contrast, the €5 million fines issued to offshore operators correspond to very serious infringements and come with website and payment blocking. These are aimed at disrupting unlicensed activity.

“This difference is essential. Mixing both types of operators in a single headline creates confusion and can damage reputations. This episode illustrates why such a distinction is essential, especially at a time when consumer confusion between legal and illegal platforms is growing.”

Black market confusion

Alongside sanctioning each illegal operator €5m, the DGOJ has blocked their websites. However, the sanctions illustrate the strength of Spain’s illicit gambling market.

Recent data from EY and Jdigital revealed that 23.4% of Spanish players have used illegal gambling websites, and the market has grown to be worth €231m in 2024, approximately 16% of the value of the regulated market.

Mirroring similar findings to those in the UK, the research found that the distinction between the legal and illegal remains increasingly blurred for players.

“One of the most striking findings is the level of confusion among consumers. Almost half of the players who believe they only use legal “.es” sites have actually accessed illegal platforms, including domains such as “.com” or “.bet”. This lack of awareness is a major cause of exposure,” explained Martín.

“32.1% of players aged 18 to 24 do not realise they are using illegal operators, making them one of the most exposed demographics.

“Illegal operators exploit these weaknesses with aggressive promotions, unlimited stakes, faster payments and a strong presence on digital channels. Platforms such as YouTube, TikTok, Instagram, Telegram, and payment methods like Bizum and cryptocurrencies are central to their strategy of attracting Spanish players outside the regulated system.”

Regulating the suppliers

The DGOJ is currently considering a raft of significant reforms, including tighter restrictions on advertising and promotions, and the implementation of a regulator-developed risky player behaviour monitoring system.

Alongside this, for the first time in Spain, B2B providers will be required to register with the DGOJ, marking “the beginning of direct supervision over the technological backbone of the industry”.

“The reform introduces a clear obligation for providers to ensure that their systems are not used by unlicensed operators,” concluded Martín.

“They will need to adopt both technical safeguards and contractual controls to prevent their platforms, software or RNGs from ending up in the illegal market. This shifts part of the responsibility for enforcement onto those who develop and supply the technology.

“In addition, a licensed operator will only be allowed to certify or approve a technical system if the supplier is properly registered. This creates a direct link between the regulatory status of B2B providers and the compliance obligations of licensed operators, tightening oversight across the entire chain.”

The Government of Montenegro has rejected appeals demanding a constitutional review of articles authorised under the New Law on Games of Chance.

The challenge was filed by NVO, the national trade association for games-of-chance suppliers, and Lutrija Crne Gore (the Lottery of Montenegro), which has contested the provisions of Article 106.

The Incumbents cite that the “transitional and concession rules” set out in the legislation undermine constitutional rights of gambling licences authorised by the former laws of Montenegro.

According to the two parties, Article 106 of the New Law will breach the constitutional ban on retroactive legislation, create unequal treatment for operators with different contract expiry dates, and will further infringe on what they described as “acquired rights” linked to existing concessions.

PM Spajić says no…
A written opinion was submitted to the Vlada legislature directly by Prime Minister Milojko Spajić, who stated:

“After examining the submission, the government finds that the law does not have retroactive effect. The mandate on games of chance is an activity of public interest and holds exclusive rights for the state. Organisers therefore do not possess any rights that will be in breach of the New Law.

The government ensures a transitional period of 270 days to allow all organisers to align their business operations with the new requirements, in all fairness to all, regardless of who they might be.

Spajić continued: “The government ultimately decides that this disputed provision is not contrary to constitutional norms or international conventions, and that there is no prospect of bringing proceedings before the Constitutional Court with respect to Article 106 of the Law on Games of Chance.”

The PM’s opinion formed the legal basis upon which the cabinet rejected the petition for constitutional review. Although the constitutional challenge has been rejected, the new framework continues to attract criticism from Montenegro’s gambling licences.

Montenegrobet, the national association of licensed operators, has warned the government that it will introduce “unrealistic compliance obligations, disproportionate criminal-liability triggers, and licence-revocation grounds that could destabilise the legal market and hinder channelisation.”

The association has urged the government to reopen dialogue with gambling licences and revise several contentious provisions that will hinder market stability and suppress investment in domestic operators.

Gambling and Euro ascension
Following the decision, Montenegro’s New Law on Games of Chance passed in August 2023 – will proceed through a phased implementation in which the government will consider minimal changes.The Ministry of Finance has begun issuing secondary regulations covering licensing conditions, AML controls, supervision, and market conduct standards.

The launch of a modernised gambling framework is earmarked by the Spajić “Pro Europa” administration as a critical domestic reform supporting Montenegro’s full accession to the European Union – in which PM Spajić and the government seek to become a full member state by 2028.