Spain’s online gaming industry sees a 23% increase in revenue compared to the previous year

Posted on: December 18, 2023, 07:25h. 

Last updated on: December 18, 2023, 07:25h.

The iGaming market in Spain has reported a significant year-on-year jump in the first three quarters of the year. However, there was also a dip in activity compared to the second-quarter results. Find out which segments are leading and falling in this report.

The Spanish flag flies against the background of the Cathedral of Seville in Seville, Spain
The Spanish flag flies against the background of the Cathedral of Seville in Seville, Spain. The country’s iGaming segment continues to experience consistent year-on-year improvements. (Image: Pixabay)

In the latest report by the Directorate General for the Regulation of Gambling (DGOJ, for its Spanish acronym), Spain’s iGaming gross gambling revenue (GGR) for the third quarter of 2023 was €304.26 million (US$332.05 million). The report provides an overview of various key components, shedding light on the dynamics of GGR distribution, marketing expenses and player activity across different game segments.

The results show a slight decrease of 2.67% quarter over quarter but a significant rise of 23.6% year on year. This marks the fourth straight year of growth for Spain’s iGaming market.

Online Casino Remains in Front

Examining GGR distribution by game segments, the casino segment emerged as the frontrunner, contributing €160.26 million (US$174.91 million), or 52.67%, of the total GGR. Within this segment, live roulette and slots exhibited quarter-over-quarter variation rates of 5.43% and 8.09%, respectively.

Meanwhile, the sports betting segment faced a decline of 14.86% quarter over quarter. Leading the drop were decreases in pre-match betting (-31.70%) and horse racing fixed-odds wagers (-9.52%).

Bingo experienced growth, with a 2.91% increase quarter over quarter, while poker demonstrates a positive trend, with a 4.09% increase in GGR. Poker tournaments and cash games also contributed to the upward trajectory, with quarter-over-quarter variation rates of 3.37% and 6.12%, respectively.

Contests witnessed a significant fall of 68.37% quarter over quarter, continuing an irregular pattern over the years. The annual variation rates for the contests segment reveal a stark contrast, with a rise of 56.64% year over year.

For the past several years, iGaming has been among the top earners in the eCommerce industry. This continued through 2023, even before the former Minister of Consumer Affairs, the anti-gambling pundit Alberto Garzón, stepped down from his post.

Marketing, Player Counts Drop

Marketing expenses decreased by 4.93% quarter over quarter, falling to €93.33 million (US$101.87 million). The breakdown of marketing expenses reveals €11.57 million (US$12.63 million) for affiliate agreements, €870,000 (US$950,000) for sponsorships, €47.68 million (US$52.06 million) for promotions and €33.2 million (US$36.24 million) for advertising.

Although the spend in all marketing segments has decreased quarter over quarter, the year-on-year variation rates are positive. They indicate a substantial rise in sponsorships (153.04%), affiliates (15.96%), promotions (11.87%) and advertising (9.31%).

In terms of player accounts, the monthly average of active game accounts sees a decline of 4.58% quarter over quarter but registers an overall increase of 10.61% year on year. The monthly average of new game accounts experiences growth, with a 4.64% increase quarter over quarter and a 4.49% rise year on year.

Player deposits and withdrawals followed similar trends, with year-on-year variation rates of 11.87% and 8.07%, respectively. However, quarter-over-quarter figures show a slight decline of 0.45% in deposits and a more notable 2.92% decrease in withdrawals.

Source link

Leave a Comment