Posted on: September 22, 2023, 06:44h.
Last updated on: September 22, 2023, 06:44h.
Spain’s gaming industry experiences growth in Q2 2023, signaling a strong recovery from the COVID-19 pandemic. Casinos and sportsbooks are seeing increased customer activity, making it one of the sector’s most profitable quarters.
Gross gaming revenue (GGR) for the quarter reaches €312.61 million (US$333 million), marking a 2.52% increase compared to the previous quarter and a significant 55.06% surge compared to the same quarter last year, according to the Directorate General for the Regulation of Gaming (DGOJ).
The growth follows a decline in activity during the first two quarters of 2022, when there was a 5.5% year-on-year decrease. However, the latest numbers show a strong rebound in the industry.
Online Casinos Dominate
The increase in GGR primarily comes from two segments of the industry. Casinos account for €149.86 million (US$159.67 million) of the total, representing 47.94% of the GGR. This highlights the continued importance of physical gambling in Spain and the impact of previous COVID-19 measures on their operations.
The other sector boosting revenue is sports betting, contributing €133.31 million (US$142.04 million), which makes up 42.64% of the entire GGR. This segment sees a growth rate of 2.07% compared to the previous quarter and an impressive 118.9% increase compared to the same quarter last year.
This data opposes concerns about the decline of land-based gambling, which were raised last October by the Spanish Association of Entrepreneurs of Game and Recreational Halls.
In terms of specific types of sports betting, conventional sports betting increases by 1.81% and live sports betting rises by 3.47% compared to the previous quarter. Horse racing bets surge by 22.67%, while other odds bets decrease by -15.08%.
Poker Experiences Mixed Results
Although Spain is a popular destination for major poker events, the segment’s performance in the quarter is mixed. Poker contributes €25.7 million (US$27.38 million) to the GGR, accounting for 8.4% of the total, but declines by 5.84% compared to the previous quarter.
However, these figures also indicate a 27.57% increase compared to Q2 of last year. Tournament poker decreases by 2.77%, while cash games suffer a 13.58% decline. Nonetheless, the annual variation is positive, with increases of 38.12% and 4.85%, respectively.
The DGOJ also reveals that the gambling industry spends €96.64 million (US$103 million) on marketing. This includes €12.29 million (US$13 million) on affiliation expenses, €1.22 million (US$1.3 million) on sponsorships, €48.96 million (US$52.16 million) on promotions, and €34.17 million (US$36.4 million) on advertising.
In terms of player numbers, the monthly average of active gaming accounts is 1,134,993, showing a 2.04% decrease compared to the previous quarter, but an 11.43% increase compared to the same quarter last year. The monthly average of new accounts is 102,804 users, reflecting a 7.71% quarter-over-quarter drop and a year-on-year decrease of 2.96%.