DGOJ Warns Operators as New Report Highlights Growing Cybersecurity Threat
Spain’s gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), has issued a warning to licensed online gambling operators following a surge in identity theft cases linked to online gaming. A recent report identified 7,712 complaints of identity theft related to online gambling in 2024, highlighting the growing cybersecurity challenge in the industry.
This data became available after the introduction of PACS, a new protocol launched in April 2024 in collaboration with Spain’s tax authority (AEAT) and state security forces. The protocol provides a formalized process for consumers who suspect their identity has been misused for online gambling.
According to findings from the Ministry of Social Rights, Consumption, and the 2030 Agenda, sports betting accounted for 91% of all reported impersonation cases. The report also estimated that nearly 5% of players who won more than €100 through online gambling were victims of identity theft.
How Hackers Exploit Online Gambling Platforms
The DGOJ warned operators that cybercriminals are using advanced technological tools, including electronic wallets and bank cards, to disguise fraudulent activities. By misusing stolen identities, they conceal winnings and evade tax obligations. These fraudsters typically exhibit high-risk gambling behaviors, such as placing numerous bets and engaging in prolonged gaming sessions.
The Phishing Alert service operated by the DGOJ has seen a significant rise in registrations since the introduction of PACS, suggesting increased awareness of cybersecurity risks among players. Users can activate the alert on the DGOJ website to receive notifications of any suspicious activity linked to their identity.
Tax Authorities Tighten Scrutiny on Gambling Winnings
In a parallel effort to combat financial fraud, Spain’s tax agency, AEAT, has reinforced its focus on ensuring players report gambling winnings in their annual income declarations. AEAT Director General Soledad Fernández recently announced stricter oversight of online gambling earnings, cryptocurrency transactions, foreign income, and rental properties. The rules, revised in 2022, now require the disclosure of all gambling winnings, removing the previous €300 reporting threshold.
Regulatory Developments and Future Measures
Earlier this month, the DGOJ hosted its first sectoral meeting on money laundering prevention in the online gambling sector. The event, organized in collaboration with Spain’s Treasury and the money laundering prevention agency Sepblac, brought together financial experts to analyze regulatory trends, recent sanctions, and key findings from compliance inspections. Discussions also covered the role of financial intelligence in detecting high-risk transactions.
Meanwhile, new identification measures for gambling are under discussion to prevent minors and self-excluded individuals from accessing gaming machines. Spain’s ruling party, PSOE, has proposed the implementation of ID verification systems to restrict underage gambling. Additionally, the party is advocating for design changes in online games to reduce their addictive potential.
As Spain tightens its regulatory framework, both gambling operators and players will need to adapt to heightened scrutiny and enhanced cybersecurity measures to mitigate risks associated with identity theft and financial fraud in the industry.
