Gambling Revenue Falls in Spain

Gambling Revenue Falls in Spain

Spain is a country that has been introducing stricter regulation on their gambling industry. The first quarter of 2022 has seen a fall in gambling revenue in the country.

Low sports betting margins have been one of the reasons for a 33.8% fall in sports betting revenue. The figure recorded was €60.9m. Margins were 2.6% for pre-match bets, 1.8% on in-play bets and 4.8% for horse racing.

When compared to year-on-year figures, gambling revenue was down by 5.6% with a total of €203.9m recorded. However, it’s not all bad news because the amounts staked increased by 8.6% and were 5% up in the year-to-year figures.

It was a better set of results for online casinos. Their revenue was €117.2m and that’s 17.3% higher than in the same period in 2021. It seems that Spain continues to be a nation that loves to play slots.

They accounted for €71.4m of the overall amount and that’s an increase of 23%. Live Roulette came second with €34.1m (a rise of 15.4%) but it wasn’t such good news for random-number generator roulette and blackjack. Both saw falls from previous figures.

The amount staked at online casinos totalled €3.74bn. Bingo figures went up too with a rise of 2.7% to €4.3m. There was a big increase in poker revenue with a 10.8% rise up to a total of €22.5m.

There has been a large fall in the amount that is being spent on marketing by the gambling industry. Year-on-year, there was a drop of 30.3% to €89.6m. The biggest fall was for sports sponsorship by gambling companies. That was of course inevitable due to the ban that has been imposed by the Spanish government. Total spending was only €375,479, a fall of 95.1%. Affiliate spending also saw a big fall, down 21.4% to €7.9m.

The amount of advertising by gambling companies is a controversial subject in many countries. In Spain, Jdigital (the online gambling trade association in Spain) is calling for a review of the ban that has been imposed by the government.

That ban came via Royal Decree in November 2020. It only allows gambling advertising between 1am and 5am and that includes YouTube. Gambling companies can only show advertising on social media to their followers and have to use age-gating to stop minors being exposed to gambling ads. As for gambling companies sponsoring sport, that has totally been banned.

The trade association wants to see the restrictions on advertising made fairer and more proportionate. Recently, the Supreme Court ruled that the restrictions placed on advertising should be subject to a constitutional review.