In Q3, Spain experienced a steady increase in internet usage.
Spain has recently revealed its third-quarter 2018 online gaming outcomes. The sports betting and online casinos sectors are seeing a strong increase in the third quarter compared to the previous year, mainly due to increased promotional spending.
The Spanish gambling regulator DGOJ (Dirección General de Ordenación del Juego) disclosed that the Spanish online gambling market witnessed a 29.9% jump in gross gaming revenue throughout the third quarter, reaching EUR 181.8 million. This growth is mainly attributed to the online casino and sports betting segments. The FIFA World Cup, in particular, contributed to a massive 27.4% increase in earnings, totaling EUR 97.4 million. Although Spain's national team didn't make it beyond the second round of the tournament, players wagered a substantial EUR 1.61 billion.
The online casino category saw the highest growth in stakes, rising by 35.6% year-on-year to EUR 2.1 billion. Online slot machines were undoubtedly the most popular gaming product, with a turnover of EUR 34.2 million. Live roulette claimed the second spot, generating a turnover of EUR 11.9 million, while classic machine gaming recorded a 39.2% surge to EUR 60.8 million.
Online Poker and Bingo Advance
Spain has also witnessed a record-breaking 35.1% jump in revenue in the online poker sector to EUR 19.8 million in the third quarter. DGOJ attributes the growth majorly to the joint player pool with France and Portugal, which was launched at the end of last May. This has led to the merging of three distinct markets. There are reports that Italy might soon join the group.
The Bingo segment also exhibited an 11.3% rise in turnover to EUR 3.1 million. In contrast, competition and prize draws categories saw a significant decline of 85% to EUR 318,279. The regulator hasn't provided any specific explanations for this dramatic reduction.
Increased Marketing Expenditure Lead to Higher Revenue
The authority has primarily attributed the positive earnings to increased marketing costs. During this period, 52 licensed operators in Spain raised their marketing expenses by up to 56.3% to a total of EUR 75.9 million. This was primarily due to an increase in TV advertisement investments. Total expenditure on TV advertising nearly doubled since 2017 to EUR 36.4 million.
Additionally, investments in sports sponsorship shot up by 83.4% year-on-year to EUR 3.5 million, and spending on affiliate marketing rose by 49.8% to EUR 7.4 million. The providers also boosted the player bonuses segment, where spending reached EUR 28.6 million, resulting in an average 30.7% increase in active accounts to 812,007.
The Ban on Gambling Advertising
Despite the positive numbers, the DGOJ's findings could be misleading as they suggest that increased revenue was due to increased marketing expenses in terms of TV advertising and sponsorship. This seems contradictory given the current political developments in Spain. The prime minister announced a strict tightening of advertising regulations for gambling in late October, which is expected to include a complete ban on advertising on TV, radio, and print media. Advertisements on the internet would also be severely restricted.
The Spanish gambling lobby is already pushing back against the new rules. Jdigital, the gambling association, stated that equating gambling advertising with tobacco advertising "would not solve the problem, but make it worse." Additionally, it warned that the ban could lead to legal and legitimate operators losing out, with players moving to unlicensed providers, many of whom are not bound by the same regulations. Despite this, the amendment is scheduled to take effect in January 2019. Italy has already taken the lead in implementing this change, with the new law expected to come into force in June 2019.
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Source: www.onlinecasinosdeutschland.com
