Revenue from online gaming falls in Spain

Recent Q2 2019 numbers weren't good for Spanish iGaming sector.

The second report of Spain’s online gaming for 2019, published by the company Codere and the Carlos III University of Madrid, showed a regression in different indicators. Besides the GGR, main figures, deposits and withdrawals of the players decreased. The €178.35 million of GGR for the Q2 2019 was distributed among €86.45 million in Betting (48.47 percent); €69.04 million in Casino (38.71 percent); €19.36 million in Poker (10.86 percent); €3.03 million in Bingo (1.70 percent); and €0.47 million in Contests (0.26 percent). The betting segment had a fall rate of 15.08 percent quarter over quarter and of 1.32 percent year over year. In-played sportsbook betting decreased 4.55 percent with respect to the previous quarter, meanwhile pre-match dropped 31.76 percent.

Bingo has experienced a fall of 5.88 percent with respect to the previous quarter and of 7.74 percent year over year. In the Casino segment, there was an advance of 3.97 percent q-o-q and an annual positive variation rate of 22.24 percent. This growth is mainly due to the slots. The Contests experienced a drop of 49.98 percent in this quarter and a growth of 36.89 percent in the annual variation rate. This segment exhibits an irregular behavior, with annual variation rates in the second quarter of 15.72 percent in 2016; 2.75 percent in 2017; and 71.34 percent in 2018. The overall result is that the market share of this segment with respect to the rest is decreasing. Poker presented this second quarter of 2019 a decline of 8.55 percent over the previous quarter and of 0.45 percent year over year. The decrease was a consequence of lower registration to poker tournaments, with a negative quarterly variation rate of 12.34 percent.

However, the report also shows that the sports betting market has multiplied by almost 2.5 in six years, from €303.3 million in 2012 to €742 million in 2017, a period in which its activity has grown regularly at a rate of 20 percent annually.

Latest data from the Spanish gaming market published by the General Directorate for Gaming Regulation (DGOJ) revealed that online gaming has grown in Spain from 2012 to 2017 by 387 percent, going from €2.81 billion to more than €13 billion in money people has bet.

In other numbers, marketing spending has been €82.5 million in the last quarter, with an annual growth of 1.18 percent. It can be divided among affiliation expenses of €8.69 million; sponsorship of €3.75 million; promotions of €29.22 million; and advertising of €40.84 million. There has been a marketing expenditure drop of 10.3 percent versus first quarter of 2019, motivated by the fall of sponsorship (24.37 percent) and advertising (14.62 percent).

The monthly average of active game accounts was 861.237, which implies an increase of 0.18 percent year over year. The monthly average of the new game accounts was 235.920, with an annual fall of 12 percent. For this second quarter, there are 53 licensed operators and the number of active operators by segment is: 38 (Casino); 32 (Bets); 9 (Poker); 3 (Bingo), and 2 (Contests).

Regarding other interesting indicators, according to the statistics of the National Market and Competition Commission (CNMC) corresponding to the first quarter of 2019, gambling and betting already account for 6.2 percent of e-commerce transactions in Spain, only behind terrestrial transport of passengers, which brings together 7.3 percent of online payments. In terms of turnover, online gaming is in fifth place, with 4 percent of transactions made during the first quarter. Ahead of gaming are, first of all, travel agencies and tour operators; second, air transport, followed by clothing and hotels. Thus, more than 203 million transactions were registered in the first quarter of 2019, up 29.9 percent in comparison to the same period of 2018.