Spain Tightens Identity Checks to Combat Online Gambling Fraud

New Protocol Targets Identity Theft in Gambling

A new verification protocol has been issued to Spanish-licensed operators, requiring enhanced identity checks and closer monitoring of player tax status. The initiative is led by the Ministry of Consumer Affairs, with enforcement coordinated between the Directorate General for Gambling Regulation (DGOJ) and the State Tax Agency (AEAT).

This framework aims to ensure that operators verify customer identities more rigorously, reducing the risk of fraudulent accounts and improving compliance across the regulated market.

Rising Complaints Highlight Growing Threat

Identity theft linked to gambling is becoming a serious concern in Spain, with complaints continuing to rise. In 2025 alone, regulators recorded 8,675 cases involving impersonated taxpayers, reflecting a 12% increase year-on-year.

The figures underline a troubling trend, as fraudsters increasingly exploit online gambling platforms to falsely declare winnings under stolen identities, creating financial and legal complications for victims.

Tax Rule Changes Add Pressure to the System

Recent adjustments to Spain’s tax framework have intensified the issue, increasing exposure to fraudulent activity. The reporting threshold for gambling winnings has been reduced from €1,000 to €300 for individuals earning over €22,000 annually.

While designed to improve transparency, this shift means that even small winnings can trigger tax obligations. This has inadvertently created more opportunities for fraudsters, particularly when using stolen personal data.

Vulnerable Groups and Emerging Patterns

A significant portion of cases involves self-excluded players, with more than 7,600 incidents linked to individuals already registered on Spain’s exclusion list. Regulators have also identified cases where minors accessed gambling services using third-party identities, often within family environments.

These patterns highlight weaknesses in current safeguards and reinforce the need for stronger identity verification across all user groups.

Enhanced Monitoring and Faster Case Resolution

Operators will now be required to adopt stricter controls and cooperate more closely with authorities, particularly when identifying suspicious account activity. The new system is designed to streamline reporting for victims and accelerate the correction of fraudulent tax records.

To support this, the DGOJ has launched the PACS (Automated Case Management System), alongside a dedicated online portal. This centralised approach improves coordination between regulators, law enforcement, and tax authorities, enabling faster investigations and more efficient case handling.

Fraud Tactics Evolving Across the Market

Criminal networks are becoming increasingly sophisticated, using automated tools to create accounts at scale and exploit promotional offers such as welcome bonuses. While sports betting remains the primary target, fraud is spreading into online casino verticals as well.

This shift signals a broader challenge for the industry, requiring operators to remain vigilant and continuously upgrade their security measures.

Strengthening the Future of Regulated Gambling

Spain’s latest measures reflect a proactive stance against online gambling fraud, aiming to protect players while maintaining trust in the regulated market. Authorities will continue to assess the effectiveness of the new protocol, with further action expected if risks persist.

As identity misuse evolves, robust verification and regulatory cooperation will be essential to safeguarding both players and the integrity of the sector.