Spanish Gambling Market
High-growth market A new survey states that the Spanish online gambling market has grown 274% since 2014. Income from online gambling and betting services grew from a total of €117.2 million ($128.97 million) in Q1 2014 to €439.1 million ($483.67 million) in the first quarter of 2019. While the gambling operator revenues in Spain have dropped significantly since last year, the market has managed to curb job loss statistics to 15%. Have Spanish operators got the resilience to recover fully with yet more obstacles on the way? The report claims Spain’s gambling market was worth €9.87b in 2018, representing 0.8% of the nation’s gross domestic product. That sum represents a 5% improvement over 2017’s result, and marks the. The online gambling market in Spain has grown 17.7% year-on-year in the second quarter of 2020. Total gross revenue of €208.9m (£189.2m/$245.2m) for the three months to June 30 represents a 4.2% decline compared to Q1 2020, however, while advertising spend by licensees dipped significantly during the period. Results posted in October showed that Spain’s online gambling market grew 17.7% year-on-year in the second quarter of 2020, as the growth of online casino and poker offset declines for sports betting caused by sport shutdowns across the globe.
Almost every European country saw a substantial growth of its gambling industry over the last few years. Spain, however, saw a growth in its online gambling industry that is beyond dramatic.
While land-based gambling in Spain has remained rather stable over the last few years, generating
€340 million in revenues in 2015 and 2016 (and just an additional million in 2017), online gambling has recorded an amazing growth in just a few years.
The Outstanding Growth of Online Casinos
Spain's online gambling industry has grown substantially over the past five years. Spain opened the online betting market rather late – in 2012, and just a year later the industry generated €60.84 million in revenues.
Statistics provided by Spain's gambling regulator—the Dirección General de Ordenación del Juego or the Directorate General for the Regulation of Gambling (DGOJ)—show that the Spanish online gambling market surpassed the €10 billion turnover between 2015 and 2016. Figures show that online gambling generated only €8.56 billion in 2015. Spain also witnessed a 34 per cent growth in GGR, amounting to €429 million between 2015 and 2016.
But the Spanish online betting industry kept on growing. Statistics from 2017 show that online GGR for sports wagering and casino gambling has rocketed to €560 million. According to data, sports betting accounts for nearly a half of all revenues.
According to mobilecasinohub.com, Spain's online betting market will most likely hit over €1 billion in the next three to five years.
The Upward Trend To Continue in 2018
Looking at figures from Q1 of 2018, Mr. Tirabassi's prognosis might be just right. According to DGOJ's report, Spain's online betting industry marked a 27 per cent increase in GGR between January and March 2018, recording €163.3 million.
Not surprisingly, sports betting accounted for over half of all revenues, generating a total of €81.9 million and marking a 16 per cent growth in GGR compared to 2017 figures. Data shows that 62 per cent (€51.1 million) of the whole is acquired from live betting. On the other hand, pre-match betting accounts for €28.6 million. Surprisingly, horse betting recorded just €1.3 million.
According to DGOJ's report, online casino revenues accounted for €56.6 million of the total. The report also paid attention to the continuing increase in online poker revenues – online poker revenues amounted to €21.5 million. Cash games contribute €8.4 million to the total, whereas poker tournaments accounts for €13 million. According to experts, liquidity activities with France and Portugal are among the reasons for growth in online poker revenues.
Last, but not least, online bingo has grown substantially as well. In Q1 of 2018, Spaniards played 30 per cent more online bingo compared to Q1 of 2014. Total online bingo revenues reached €3.5 million.
Even though online gambling revenues are substantially higher compared to figures from Q1 in 2017, however, GGR was 5.7 per cent lower than the amount collected in Q4 2017.
Horse Racing On The Rise
It is not only the online gambling industry that has grown substantially in Spain. According to statistics, Spaniards increasingly bet on horse racing. In fact, the horse racing sector marked an increase of more than 200 over the last five years. Back in 2013, GGR from betting on horse racing recorded roughly €21 million. In 2017, however, the horse racing sector generated over €90 million in revenues.
The Spanish Government To Cut Taxes
In April 2018, the Spanish government introduced its 2018 budget to parliament. The budget, which was approved by Prime Minister Mariano Rajoy, touches upon various subjects, including taxation on online gambling.
The budget suggests a tax cut of 5 per cent (from 25 to 20 per cent) on GGR. According to the government, this measure will attract licensed and renown operators to the flourishing online betting market in Spain. Moreover, government representatives say this measure will help reduce and eventually eliminate illegal gambling within the country.
Spanish Gambling Market Size
Last, but not least, the proposed tax cut will remove any existing tax discrimination between different forms of gambling in accordance with the non-discrimination policies supported by the European Commission.
Jacop Lopez Curciel – chief executive of Optima, a sports betting and eGaming software provider – agrees that these measures could attract licensed operators to the thriving Spanish market. However, Mr. Curciel said that these measures could lead to over-regulation in the future, making the market outstandingly expensive and potentially shutting its doors to new operators.
Spanish Gambling Markets
In response to the proposed tax cuts, chairman of Jdigital—a Spanish gambling trade association—Mikel Lopez de Torre opines that it is difficult to predict what could happen if the 2018 budget is approved. He also emphasized that the country might find it challenging to accommodate 12 new brands on the market without offering at least some consolidation in the near future.
Habanero is a worldwide developer of software for the gambling industry and is among the pioneers in both the B2C and B2B industries. The provider specializes in complex solutions for online casinos and supplies its developments to countries all over the world. Now, Habanero begins to prepare to enter the Spanish game market. In this way, the company plans to expand its presence in Europe and increase brand awareness.
Habanero was founded in 2010, but its rapid growth began in 2012. In a short time, it became one of the top four providers in Asia and began its expansion to the European market. The manufacturer of gaming software offers a wide range of slot machines, board games, as well as a platform for virtual gaming clubs.
The wide and rich catalog of games that Habanero offers includes old but gold classics, for example, Blackjack, Roulette, and Baccarat, as well as improved novelties with immersive effects and different board games.
Habanero initially entered the Spanish market with 41 of its most popular and exciting slots, board games, and promotion tools. Habanero games feature beautiful realistic animation, lots of prize symbols, and bonus privileges. The most popular slots that every casino lover knows are Super Twister, Pool Shark, Zeus, Sparta, and Gold Rush.
Everything was done according to DGOJ certification standards, which members of the Spanish gaming market must adhere to. The reason why Habanero needs accreditation is simple. The company plans to announce a series of loud and big deals in the near future, and for this, Habanero needs to cooperate with many Spanish operators.
Habanero is already a massive success in Europe, having signed contracts with leading providers in countries such as Italy, Portugal, Croatia, Romania, and Bulgaria. Habanero is no longer new to the game in the European market, and therefore the conquest of the Spanish market is likely to be smooth and successful.
To what, or to whom, does Habanero owe such success? It’s all about Arcangelo Lonoce, head of business development. He is the one who has achieved incredible growth and expansion in the European market. Led by Lonoce, Habanero aims to expand rapidly through 2020 and to delight its fans with the same exciting and immersive games for which it has become renowned in the industry.
Lonoce has stated that Habanero is armed with many premium segment products and a vast number of action games. The company is fully prepared to make a name for itself in the Spanish market and to become one of the leading developers in the future.
According to Lonoce, all team members are looking to the future with enthusiasm and high expectations. With market-leading promotional tools and an incredible portfolio of some of the best slots currently available, Lonoce and his team hope to provide Habanero with a great future in Europe.