Spain's gaming market, valued at €12.3 billion in 2025, is grappling with the rise of crypto gambling and stringent regulations. The Dirección General de Ordenación del Juego (DGOJ) is intensifying oversight of online operators, while Spain's 17 autonomous communities handle land-based gambling regulation. The channelization rate has dropped from 79% in 2024 to 77% in 2025, as players increasingly turn to unlicensed, crypto-powered sites. Illegal crypto casinos are drawing high-limit players, with 32% of high-roller betting volume occurring on these platforms. In response, the DGOJ has shut down 14 illegal sites in early 2025. Despite these challenges, licensed casinos are innovating with new games to retain players, highlighting the critical role of regulation and consumer protection in the evolving market.