Is it possible to place bets in Madrid and where? I know gambling is acceptable (La loteria, gambling machines etc), but is it permissible to bet on the winners of the Champions League here?

It's not that it's acceptable or not. As far as I know, it's not forbidden, or at least, not 'de facto'. But there is no such organized gambiling (betting) houses like in the UK. You´d have to do it with friends or acquaintances.

Thanks for that info. Pity though. You see, if you wanted to bet on England winning a game, England would be the worst place to make the bet (the odds would be so much lower). Still, since it's many years since I made a bet, perhaps this is a good sign to keep away from the gambling bug.