Sports Betting is Biggest Contributor to Spain’s Online Gambling Revenue

Spain’s online gambling revenue reported an annual increase of 2.8%.

Sports Betting and Casino Account for 86% of the Grand Total

Licensed online gambling operators generated revenue of €191.2 million in the three months ending September 30, according to figures from Spain’s Dirección General de Ordenación del Juego (DGOJ) released on Wednesday.

This corresponds to a moderate 2.8% rise from the same period last year but a decrease of 5.6% from Q2 2020.

Sports betting was the undisputed leader with €85.2 million, down 15.4% on annual terms but up by 25.06% from Q2 2020. This game segment accounted for 43.22% of the total online gambling revenues.

Pre-match betting suffered the sharpest year-on-year decline, with revenue falling 21.4% to €31.5 million while live betting dropped 9% to €52.6 million. Both segments posted sequential gains of nearly one-third apiece.

Throughout 2020, Spain has made efforts to refine its gambling laws and to create a safer environment for customers and more vulnerable groups in particular. A few days ago, the country announced it will create a new entity in charge of harmonizing gambling regulations and standards across all 17 autonomous regions.

Earlier this year, the government introduced restrictions for gambling advertising and in mid-December, the Spanish Ministry of Consumption affairs put a draft Royal Decree regulating online gambling for public consultation.

New Regulations Will Drag Down Marketing Spending in 2021

Casino was the second biggest game segment with a revenue of €83.89 million or 42.55% from the total. It experienced a year-over-year increase of 25.98%, while in quarterly terms there was a 10.31% decrease.

Slots remains a big casino contributor with revenue of €49.8 million, up nearly 30% year-on-year but down 4% from Q2. Live roulette reported an even more significant rise, up 42.6% year-on-year but down 16.8% sequentially to €22.4 million.

The poker presents a decrease of 39.76% over the previous quarter and an increase of 12.36% compared to the same quarter last year.

Spain’s licensed gambling operators substantially boosted their marketing spending to more than €150 million in the last quarter, with advertising tripling sequentially to €51.8 million while bonus offers surged 560% to €82.4 million. Affiliate marketing increased 40.6% to €9.4 million and sponsorship spending doubled to €6.5 million.

The rise was due to the revocation of restrictions in advertising and promotions of gambling, from April 4 to June 10. However, these figures will take a downturn in 2021, when Spain’s new online marketing restrictions take effect. Under the new rules, all existing marketing contracts will expire in spring, with huge fines and temporary license suspensions for operators that fail to comply with the rules.

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