Exploring European Online Gambling Markets – Spain
Published: March 24, 2024 | Author: Ron Clarke
In the second article in our series examining the online gambling markets in Europe, following our first article on Portugal, we turn our focus to Spain, a country that has demonstrated a steady growth in this sector. The year 2023 was no exception, as Spain’s online gambling market recorded impressive figures, signaling its strong position within the European market. This analysis draws upon the latest data from Spain’s Directorate General for the Regulation of Gambling (DGOJ), unpacking the trends and dynamics that shaped Spain’s online gambling scene over the year. But before we dive into the 2023 figures, let’s take a look at the regulatory framework that governs the Spanish market and controls the way it acts and looks like.
Regulatory Framework
Spain’s online gambling is governed by strict regulations enforced by the Directorate General for the Regulation of Gambling (DGOJ). These rules aim to ensure fairness, protect consumers, and prevent problem gambling. Key measures include severe advertising restrictions, as set out in the 2020 Royal Decree, which limits gambling ads to late-night hours and places heavy restrictions on promotional content. Additionally, there are specific safeguards for minors and vulnerable individuals, such as banning credit card use for gambling and tracking at-risk behaviors. Spain’s approach seeks to balance industry growth with minimizing gambling-related harm, marking its regulatory framework as one of Europe’s most stringent.
Spain’s Remarkable Market Growth in 2023
The headline figure that captures attention is the gross gambling revenue (GGR) for 2023, which soared to €1.24 billion. This represents a significant year-on-year increase of 28.4%, marking the most substantial growth since 2017. Such an increase is not an isolated event; except for a slight dip in 2021, Spain’s GGR has been on an upward path since 2013. Deposits and withdrawals, crucial indicators of market activity, also witnessed a healthy rise, increasing by 15.5% and 10.1% respectively. Meanwhile, the number of active gamblers in Spain increased by 2.7%, crossing the 1.6 million mark. These metrics collectively show a growing and engaged consumer base.
The Driving Forces: Casino and Betting Sectors
A closer look at the composition of the GGR reveals the dominant forces within the market. The casino sector, accounting for 50.5% of the total GGR, led the way with €624.8 million in revenue. Slot games, in particular, have been a significant growth driver, now representing 61.6% of the casino segment’s revenue, marking a 28.1% increase from the previous year.
Not far behind, the betting segment claimed 39.8% of the GGR, translating to €491.8 million. This sector benefited from a 48.7% increase in in-play sports bets, contributing to an overall sector growth of 36.6%. Other fixed-odds betting saw an even more dramatic year-on-year surge of 191.9%, highlighting the dynamic nature of Spain’s betting landscape.
Poker and bingo also posted gains, albeit at a more modest pace, with poker revenues rising by 16.9% and bingo by 0.9%. In contrast, the contest sector experienced a downturn, shrinking by nearly half (48%) over the year.
Marketing Dynamics in the Face of Regulation
Despite the DGOJ’s efforts to tighten restrictions on advertising, the sector’s marketing expenditure increased by 7.6% to reach €402.8 million in 2023. Sponsorship activities witnessed the most significant increase, soaring by 38.4%. Additionally, affiliates, advertising, and promotions saw increases of 21.7%, 9.2%, and 2.8%, respectively. This rise in marketing expenditure reflects the industry’s resilience and creativity in navigating the regulatory framework, which includes severe restrictions on advertising and sponsorships introduced by the 2020 Royal Decree.
Forward-Looking: Responsible Gambling Measures
Amidst financial growth, Spain has not lost sight of the importance of responsible gambling. The introduction of over 30 youth-focused measures in March 2023, including defining at-risk players and imposing restrictions on credit card use for gambling, highlights Spain’s commitment to safeguarding its citizens. These measures, while controversial within the industry, underscore a broader push towards a sustainable and ethically responsible gambling ecosystem.
