The Spanish gambling market has been thriving in recent years. Ever since the country legalised online gambling in 2011 through its Gambling Act, the numbers have been increasing. Spain’s official regulator, the Directorate General for the Regulation of Gambling, reported an increase in gross gaming revenue by nearly 20% in the third quarter of 2022.
This is a tremendous improvement for the market, which has experienced four consecutive quarters with gross betting revenue of less than 2.5% of turnover. The current numbers indicate that the total GGR for the three-month period that ended on September 30 was capped at €240.8 million. The figures demonstrate an 18% increase when compared to the previous quarter and a 31% rise in comparison to Q3 in 2021.
The total betting revenue was €89 million, indicating a steady increase. Actual figures show that revenue has surged 46.2% since Q2.
Sports Betting Revenue Leads the Way
According to the Directorate General for the Regulation of Gambling, statistics show that the biggest winner in Q3 was the sports betting industry. It recorded a growth of 46.20% when compared to Q2, which is also a 48.61% increase compared to Q2 in 2021.
One of the main reasons behind such good results is the rise in betting margins to 4.1%. The percentage indicates nearly double the growth compared to what sports betting operators faced in the previous quarter, despite the slight drop in turnover.
It seems that live sports betting is at the forefront of the industry’s growth. It rose from 47.3% to 56.9% compared to the previous quarter, whereas pre-match betting managed to contribute €35.2 million in GGR during the same period.
Online Casino Sector Shows Steady Improvement
Looking at the numbers for the online casino sector in Spain, we can see an increase of 9.2% compared to Q2. Namely, the total stake and GGR in Q2 accumulated to €117.2 million, whereas the same numbers in Q3 totalled €128 million. When compared to the same period last year, the growth is even greater, hovering around the 27.55% mark.
The online casino sector ranks among the most stable in the Spanish gambling industry. Its growth may be slow, yet it has been steady since Q4 of 2020. Online slots account for 62.4% of the market revenue, followed by live dealer roulette at 28.8%.
Marketing Efforts Restricted
The total spend on marketing was €96.31, which is a 7.8% jump compared to the last quarter or 7.1% over the last year. Advertising takes up the largest portion of that spend, followed by promotions and affiliate marketing expenses.
However, Spain’s Council of Ministers approved the Royal Decree on the Commercial Communications of Gambling Activities in 2020. This decision restricted TV and radio advertising of gambling from 1 a.m. to 5 a.m. and banned advertising of welcome bonuses, thus leading to a decline in marketing expenditure.