Procedure For Granting Gaming Licenses

Procedure For Granting Gaming Licenses

The exploitation and organization of games that are not of an occasional nature requires obtaining a general license for the type of game that is intended to be organized, marketed and exploited, whether it be “Betting”, “Contests” or “Other Games”. The “Lottery” gaming modality is excluded from this list because state-level lotteries will be reserved for operators designated by law, these operators being the State Society of State Lotteries and Gambling (SME) and the National Organization of the Spanish Blind. (ELEVEN).

Likewise, and together with the general license, it is required to obtain the specific license corresponding to the type of game that the gaming operator intends to organize, market or exploit. So:

General licenses: they enable their holder to exercise the modalities of betting games, contests and other games. The granting of said licenses is carried out by the DGOJ prior to the timely call for an administrative procedure guided by the principles of publicity, competition, equality, transparency, objectivity and non-discrimination, included in the specifications that will govern the call and that will be published in the «Official State Gazette». Likewise, it is also possible to open the procedure at the request of the interested party (Interested parties may request the call for a new procedure for the granting of general licenses for the exploitation and marketing of certain games, after at least 18 months have elapsed from the date of the previous call in relation to the same type of game) . In this case, the DGOJ has a period of 6 months to initiate said procedure unless it is estimated, based on reasons of general interest, not to proceed with the summons.

Its duration is 10 years, extendable for a period of the same duration.

Singular licences : they enable their holder to operate each of the types of games regulated and included in the scope of each general license, therefore only operators holding a general license can request the corresponding singular license. The granting of said licenses is carried out by the DGOJ in accordance with the regulations adopted for this purpose.

Its minimum duration is one year and a maximum of five, extendable for successive periods of the same duration. The loss of the general license entails, in turn, the loss of the specific licenses linked to it.

Requirements For Obtaining A Gaming License

The procedure for the granting of licences, which in general will not limit the number of licenses that could be granted, has the purpose of verifying compliance, by the applicants, with the requirements established in the current regulations and in the specifications. bases of the call, and more specifically requirements of a legal, economic and financial nature, security and reliability of software, security in operations and transactions related to the development of gaming activity, responsible gaming policies and protection of minors , as well as the fight against fraud and money laundering, in accordance with the spirit that governs the licensing model provided for both in the law and in its implementing regulations.

Legal requirements:

  • Form of public limited company or similar corporate form, with registered office in a State belonging to the European Economic Area.
  • Present the organization, marketing and operation of games as the sole corporate purpose.
  • Be in possession of a minimum, total and paid-up share capital of 100,000 euros for the application for a general license for the “Betting” and “Other games” type of game or 60,000 euros when only a general license is requested for the development of the game mode “Contests”.
  • Registration in the Mercantile Registry or, in the case of foreign companies, in an equivalent registry provided that the legislation of the State in which the company has its legal headquarters requires registration.
  • Registration in the Special Section for Competitors of the General Register of Gaming Licenses.
  • Not to attend in any of the circumstances provided for in article 13.2 of Law 13/2011, of May 27, on gambling regulation.

Economic requirements:

  • Appropriate statements from financial entities on the solvency of the company.
  • Annual accounts presented in the Mercantile Registry or in the corresponding official Registry.
  • Declaration on the global volume of business in the last three years.

Description and origin of own and external financial resources

  • Without prejudice to the fact that the DGOJ, for justified reasons, may authorize the applicant to prove their economic and financial solvency by means of any other document it deems appropriate.

Technical requirements:

  • Statement indicating the structure of technical staff.
  • Professional experience of the directors of the entity responsible for the development of the gaming activities subject to the license.
  • Statement on the entity’s average annual workforce for the last three years.
  • Statement indicating the technical systems that will be available for the development of the gaming activities covered by the license.
  • Description of the facilities or technical units, of the measures used to guarantee quality and safety and, where appropriate, of the company’s means of study and research.

Rights And Obligations Of The Licensors

In accordance with the requirements that the entities requesting a license for the development of non-occasional gambling activities have to comply with, a series of rights and obligations arise for said entities once they have obtained the corresponding license. The rights basically consist of the development of gaming activity at the state level in accordance with the licenses granted.

Obligations can be grouped into those of an economic, technical and responsible gaming management nature.

Economic Obligations:

  • Pay the fees derived from gambling regulation activity.

Technical Obligations:

  • Implement a specific website with a domain name under “.es”
  • Redirect to the specific website with a domain name under “.es” all connections made from locations located in Spanish territory, or that make use of Spanish user accounts, to websites under a domain other than “.es”, that are owned or controlled by the gaming operator, its parent company or its subsidiaries.
  • Approval of technical systems
  • Identification of participants
  • Control of subjective prohibitions of participation (Consultation in RGIAJ)
  • Randomness of the random number generators used
  • Security requirements for technical gaming systems
  • Guarantee the traceability and registration of gaming operations
  • Implementation of an internal control system that captures and records gaming operations and economic transactions. Said system must have a warehouse geographically located in Spanish territory.
  • Allow, if necessary and without prejudice to the possibility of carrying out on-site inspections, connection to the system by inspection personnel.

Obligations Within The Framework Of Responsible Gaming Management:

  • Ensure the integrity and security of the games, guaranteeing participation, transparency of draws and events, the calculation and payment of prizes and the professional and diligent use of funds.
  • Properly channel the demand for participation.
  • Reduce any risk of potential harm to society, this includes the fight against illegal gambling and associated criminal activities.
  • Actively collaborate in accordance with current regulations, with the authorities in charge of preventing money laundering.

Completion Of The Procedure

The procedure for granting licenses concludes by Resolution of the head of the Directorate General for the Regulation of Gambling, within a period of 6 months, counted from the presentation of the application, without prejudice to the extension of the same for the time that the interested party would have used to meet the requirements made during the aforementioned period. Said Resolution must be notified to the applicant within a period of ten days from its adoption and will be published on the website of the Directorate General for the Regulation of Gambling. Once said period has elapsed without the express resolution on the request being issued and notified, it will be understood as granted by administrative silence.

In any case, the granting of the licenses is conditional on obtaining the definitive homologation of the technical gaming systems, which must be granted within 6 months following the notification of the granting of the corresponding license.

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