Spain experiences a surge in sports wagering and online casinos during the initial quarter.
The Spanish online gaming market has released its Q1 reports, showcasing remarkable growth in the online sports betting and online casino industries. Compared to the Q1 of the previous year, the online gaming sector experienced a strong growth spurt of 20%. Meanwhile, a potential ban on advertising is being discussed in Madrid. Let's take a closer look at the details.
Online sports betting leading the charge
The global online gaming industry is thriving, and Spain's regulated market is proof of this: the publishing Q1 results can be credited to the increased revenues in the online sports betting and online casino sectors. In the first three months of 2019, the Spanish igaming market posted an impressive EUR 193.3 million in gross gaming revenue. This is in comparison to EUR 163.3 million for the same period in 2018.
When compared to the fourth quarter of 2018, the Spanish gaming sector saw a 2.14% increase. While this may seem modest, the upward trend was already evident at the end of 2018 with quarter-end revenue already at 189.2 million euros. The strong performance in both the sports betting and casino sectors resulted in a 20.1% year-on-year increase in Spanish online gaming revenues for Q1. These figures were shared by the Spanish regulatory agency, La Dirección General de Ordenación del Juego (DGOJ).
The sports betting sector is the main contributor to income for licensed operators in the Spanish market. It accounted for a staggering 52.2% of the total market in Q1. When comparing Q1 2019 to Q1 2018, turnover increased by a remarkable 26.2%, with revenue increasing from EUR 81.7 million to a new record of EUR 100.8 million.
Similarly, the online casinos sector also saw significant growth. Here, revenue soared by 20.2% when compared to Q1 2018, rising from EUR 56.6 million to EUR 67.1 million. In Q1 2019, online casinos generated 34.7% of the total growth in the Spanish iGaming market. Online slots dominated the sector, generating the most significant turnover.
Online poker and bingo facing declines
While online bookmakers and casinos are enjoying a surge in revenue, the online poker sector faced a slight decrease compared to Q1 of the previous year. Turnover in this category dropped by 1.4% to EUR 21.2 million. The Cash Games brand saw a particularly notable drop, with sales declining by 5.7% to EUR 7.5 million in Q1 2019.
The card game segment's online baccarat was the only positive in the current Q1 balance sheet, with a whopping 1,400% growth rate. However, this category's sales do not even reach EUR 3 million of the total sales.
The Spanish online bingo sector also witnessed a decline. Turnover fell by 8.6 percent to EUR 3.2 million.
Heavier marketing expenses
The market's growth is also attributed to higher marketing expenses. Marketing costs grew by a massive 21.4% year-over-year, reaching EUR 92.3 million.
Diving into the breakdown, Spanish licensees spent EUR 47.9 million on advertising, EUR 29.3 million on exclusive advertising campaigns, EUR 10.2 million on affiliate marketing, and another EUR 4.9 million on sponsorship. Despite the increased spending, marketing costs fell by 6.5% when comparing Q4 2018.
However, the number of active player accounts increased by 13.1% to 900,513.
A potential ban on gambling advertising?
Despite the Spanish government's recent tax reduction from 25% to 20% in July 2018 to attract more European gambling companies, a gambling advertising ban similar to the Italian model has been under discussion since October. This ban is being backed by Spanish Prime Minister Pedro Sánchez (Podemos), who seeks to equate gambling and tobacco advertising. In the EU, tobacco advertising has been banned on television, radio, and print media since 2007.
The most recent move towards an absolute ban on gambling advertising is the Spanish Ombudsman Francisco Fernández Marugán's stance on the issue. On the contrary, the politicians are facing opposition from the Asociación Española de Anunciantes - the Spanish association for advertisers.
The Association mainly argues the advertising should be allowed "where they want to advertise" and cites "the rules of a free and democratic society" in its defense. This ongoing debate adds further uncertainty to the market's future. [The End]
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Source: www.onlinecasinosdeutschland.com
