Population 2019: 46.9 million
GDP 2019: 1.244 billion EUR
GDP per capita 2019: 25,170 EUR
Taxation for Lotteries: None. Players must pay income tax on net winnings at a rate of 10% or 20% on lottery and betting winnings over €2,500.-
Charity lotteries allowed: No

LEGISLATION

While lotteries in Spain have been around since 1763 and have always been extremely popular, the laws that regulated games of chance in general were extremely outdated. As such, these laws were re-regulated in 2011, changing the Spanish gambling landscape changed completely with the introduction of the Spanish Gambling Act. In short, this law had three goals: first, it was to harmonize and regulate online gambling in Spain and in its autonomous communities. Its second goal was to also regulate the provision of games by the incumbent lottery operators LAE and ONCE, regardless of the channels through which these two operators organized their games. Lastly, advertising too was included in the scope of the Spanish Gambling Act.

CHARITY LOTTERIES

ONCE: Organización Nacional de Ciegos Españoles

Roughly translated, ONCE stands for National Organization of Spanish blind people. Since 1938, the charity ONCE has been operating games of chance in order to raise funds and provide employment, education, access to technologies and a multitude of other services to people that are blind or who have another serious visual impairment.

Although ONCE offers several gaming products, their traditional product and one of their most visible ones is the Cupón. Sales of this lottery product are the main source of income for ONCE and offer large prizes. All in all, the total turnover in 2018 was almost 2.2 billion EUR. Of this, 79 million EUR has been used to aid the visual impaired. In addition to this sum, much of the proceeds of the lotteries are used to employ these people as well. So the actual remittance to the visual impaired is much higher.

OTHER LOTTERIES

LAE: Loterías y Apuestas del Estado

LAE is Spain’s first official lottery. It was introduced in the 18th century as the “Royal Lottery” by Carlos III as a way of obtaining money to fund hospitals, hospices and other public charities without levying a new tax on the Spanish public. While it has had name changes over the years, the LAE is, and always has been, the state lottery. In addition to this, they also operate various other sports betting and lottery games such as Euromillions, El Gordo.

The LAE is also the largest lottery of Spain, with an annual turnover of over 9 billion EUR in 2018. And while the initial goal of Spain’s state lottery was to fund the hospitals and public charities, it seems as if this is no longer the case. Of it’s total turnover, 19 million euros had been used in 2018 to aid public and social interest, such as the Spanish Red Cross; Spanish Association Against Cancer (AECC), and Cáritas. 7 million more was used to benefit the sport sector. All in all, this amounts to 0,3%. In contrast, most of LAE’s profit goes towards the state. In 2018, this was 2.23 billion EUR.