Erik Gibbs

Spanish Gaming Revenue Drops as Sports Betting Drops

Posted on: June 20, 2022, 09:05.

Last updated on: 20 June 2022, 09:05.

In the first quarter of the year, Spain’s gambling revenue fell from the level in the previous quarter. Casino gambling held its own during this period, but less attention was paid to sports betting.

Casino Admiral in Seville, Spain. The country’s gambling market saw a dip in revenue in the first quarter of the year. (Image: Novomatik)

Spain’s Directorate General for Gambling Regulation (DGOJ for its Spanish acronym), the gambling regulator, reported that gambling revenue fell 14.8% in the first quarter. As a result, total gross gaming revenue (GGR) was €204.4 million (US$215.17 million).

This figure represents an increase of 16.25% compared to the previous quarter. But at the same time, there is a 14.83% decrease compared to the same quarter of 2021.

Bet Up, Winnings Down

The market reported stakes of €7.41 billion (US$7.8 billion), up 5.3% year on year. This was the result of additional deposits of EUR 769.8 million (US$810.6 million) during the period, up 7.1% quarter-on-quarter.

The casino segment had a growth of 3.26% compared to the fourth quarter of 2021 and a positive annual rate of change of 11.52%. Of the €3.72 billion (US$3.9 billion) bet, casino games generated revenue of €111 million (US$116.86 million), up 11.5% year on year.

Two main factors skewed the numbers. Initially, slot machine revenue was €64.9 million (US$68.3 million, up 1.2% year-on-year. However, the roulette event lost 5.2% to €34.3 million (US$36.11 million).

Poker gave the first quarter of the year a 19% increase over the previous quarter. At the same time, it provided a 2% decrease compared to the same quarter of the previous year. As a result, tournament poker increased with a quarterly change rate of 26.75%, resulting in a negative annual decline of 9.5%.

The sports betting segment has seen a lot of volatility over the past year. The quarter-on-quarter growth rate is 49.07%, but this also represents a 40.9% year-on-year decline. Sports betting was up 10.6% year-on-year to €3.06 billion (US$3.22 billion), while revenue was €65.2 million (US$68.6 million).

Affiliate Marketers Make Money

Spain’s new advertising restrictions have caused direct marketing budgets to drop dramatically. But operators have found a way to circumvent the restrictions.

The amount fell 27.7% year over year. The ban on sports partnerships effectively reduced sponsorship spending, which fell from €9.4 million (US$9.9 million) to €632,784 (US$666,384). However, affiliate marketing increased spend 84% to €22.7 million (US$23.9 million) due to new restrictions.

Spain’s Ministry of Consumer Affairs introduced restrictions in November limiting gambling ads between 01:00 and 05:00. iGaming association JDigital together with the Information Media Association (AMI for Spanish abbreviation), the Spanish media outlet, objected to the measure. They argue that the royal decree is invalid without constitutional approval.

JDigital reports that it has filed an appeal against the royal decree. This came when the Spanish Supreme Court ruled that the appeal should be subject to constitutional review.

More Gambling Harm Research Coming

Studies have shown that Spain has a relatively small segment of the population that falls into the problem gambling category. Only around 4% indicates that the country has a good grasp on the gambling industry. But he wants to take a closer look.

The Department of Consumer Affairs rolled out a plan it announced earlier this year, last week. It will allocate €1 million to subsidies for the development of research activities related to the prevention of possible gambling disorders, derived effects and risks associated with this legal activity.

Beneficiaries can be public and private research centers, as well as non-profit organizations that conduct research on the gambling industry. In addition, organizations that cooperate with research centers and whose governing bodies are not included by operators who organize or run the game may also participate.

The ministry is now accepting applications for consideration in the program. Entities have three more weeks to submit their claims.

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