Complications For Bwin's Real Madrid Deal

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Spanish consumer protection association demands investigation

With the ink hardly dry on a major sponsorship deal between the famous Real Madrid football club in Spain and top Austrian online betting group Bwin Interactive, it appears that a consumer protection association is trying to throw a spanner in the works.

The Asociación de Usuarios de la Comunicación (AUC), a watchdog association for the Spanish communications industry has lodged a complaint with the administrative branch of Spain’s Ministry of Economy and Taxes, claiming that online gambling activities in Spain are illegal if carried out by unlicensed companies, therefore rendering illegal the promotion of online gambling. AUC executives have demanded the commissioning of an immediate investigation into the sponsorship.

This is not the first time that AUC has pressed the illegality point. It has also lodged complaints against several newspapers, radio and television media that have accepted online gambling advertising, together with three football teams that have accepted sponsorship from Miapuesta and 888.com in addition to Bwin's sponsorship of Real Madrid.

Online gambling could become the subject of political debate in Spain following criticism from the sports spokesman for Partido Popular, the principal political Opposition last week. The spokesman called on the government to address the issue of foreign Internet gambling companies illegally accessing the Spanish market, and said that such activity was in direct contravention of "at least eight" Spanish laws. He accused Spanish football clubs like Real Madrid of being accomplices in illegal gambling through involvement in sponsorship programs with online gambling companies, and noted that managements of such clubs should anticipate the possible consequences.

Thus far the Spanish government has shown little appetite for legal action against online gambling companies sponsoring Spanish sports, but high profile promotional activities by major companies such as Bwin seem to be generating more heat among opposition politicians and organisations like the AUC.

As a member of the European Union common market, Spain is faced with the now widespread EU demand for free movement of goods and services, which several governments have resisted due to the impact on individual state lottery and other monopolies. The European Commission is currently active in pursuing the free movements of services in several countries following major European Court of Justice rulings.

Earlier this year the Madrid government gave regional governments more licensing freedom regarding gambling, triggering major interest in the Spanish market.