Spanish Gambling Market Going Strong
Gambling industry numbers in Spain have been recovering albeit the revenue generated is still struggling to catch up to its results in 2008
before the global economic crisis hit markets across the globe.
According to a report by the Consejo Empresarial del Juego (CEJUEGO)
, Spain’s gambling market hit €9.87 billion, accounting for nearly 1% of the country’s gross domestic product (GDP).
The total gambling handle was divided between private and public sector gambling entities, including the SELAE and ONCE lotteries operated by the state. The state-owned entities generated estimated €4.92 billion or 1.9% better year-over-year.
Gambling licenses fetched another €724.4 million in 2018, pushing another strong result. Meanwhile, the government managed to collect €1.34 billion in the form of tax and some 85,047 Spanish residents were employed in the gambling sector, compared to estimated 100,000 in the United Kingdom.
Spain’s Q3 2019 Gambling Strong
In the third quarter this year, Spain posted solid 5.4% growth year-over-year (YOY). The sector’s gross gaming revenue (GGR) hit €191.7 million in the three months leading up to September 30.
Things specifically picked up thanks to sports betting activities
after Q2 was rather barren in terms of prominent sports competitions. ‘Future’ or ‘pre-match’ betting continued to climb up to €40.1 million in the period. Live betting revenue also grew to the impressive €57.9 million over the period.
Another main vertical of growth was online casinos and slots
which brought in some €66.5 million. Yet, this was a nearly 4% decline from Q2 and a 9.5% YOY increase. The restart of the soccer season also led to higher interested in procuring gambling licenses in the Spanish market.
Bonus offers in the market increased to estimated €31.7 million over the period, although the total amount spent on advertising plunged by 3.7%.
Overall, the Spanish regulator Dirección General de Ordenación del Juego (DGOJ)
confirmed the strong quarter for Spain.
Some Concerns to Address
The Spanish government is also eyeing Gibraltar, hoping to bring more companies from the territory back
on the Spanish mainland in anticipation of Brexit and the uncertainty surrounding the United Kingdom’s political divorce with the European Union (EU).
While the status of the territory will be debated after Brexit, Spain is also considering some regulatory measures to limit the exposure of adolescent individuals to gambling advertisement.
The country is looking to adopt stricter gambling advertisement rules, which could lead to a drop in the overall GGR. Unlike Italy, however, Spain doesn’t intend to completely ostracize advertising from public venues, but rather follow a model similar to the United Kingdom.
Meanwhile, the Netherlands just recently proposed to introduce a pre-water shed ban to avoid exposing youngsters to gambling materials.