Can We Expect the Spanish Online Gambling and Betting Market to Grow in 2018?
Almost every European country saw a substantial growth of its gambling industry over the last few years. Spain, however, saw a growth in its online gambling industry that is beyond dramatic.
While land-based gambling in Spain has remained rather stable over the last few years, generating
€340 million in revenues in 2015 and 2016 (and just an additional million in 2017), online gambling has recorded an amazing growth in just a few years.
The Outstanding Growth of Online Casinos
Spain's online gambling industry has grown substantially over the past five years. Spain opened the online betting market rather late – in 2012, and just a year later the industry generated €60.84 million in revenues.
Statistics provided by Spain's gambling regulator—the Dirección General de Ordenación del Juego or the Directorate General for the Regulation of Gambling (DGOJ)—show that the Spanish online gambling market surpassed the €10 billion turnover between 2015 and 2016. Figures show that online gambling generated only €8.56 billion in 2015. Spain also witnessed a 34 per cent growth in GGR, amounting to €429 million between 2015 and 2016.
But the Spanish online betting industry kept on growing. Statistics from 2017 show that online GGR for sports wagering and casino gambling has rocketed to €560 million. According to data, sports betting accounts for nearly a half of all revenues.
According to mobilecasinohub.com, Spain's online betting market will most likely hit over €1 billion in the next three to five years.
The Upward Trend To Continue in 2018
Looking at figures from Q1 of 2018, Mr. Tirabassi's prognosis might be just right. According to DGOJ's report, Spain's online betting industry marked a 27 per cent increase in GGR between January and March 2018, recording €163.3 million.
Not surprisingly, sports betting accounted for over half of all revenues, generating a total of €81.9 million and marking a 16 per cent growth in GGR compared to 2017 figures. Data shows that 62 per cent (€51.1 million) of the whole is acquired from live betting. On the other hand, pre-match betting accounts for €28.6 million. Surprisingly, horse betting recorded just €1.3 million.
According to DGOJ's report, online casino revenues accounted for €56.6 million of the total. The report also paid attention to the continuing increase in online poker revenues – online poker revenues amounted to €21.5 million. Cash games contribute €8.4 million to the total, whereas poker tournaments accounts for €13 million. According to experts, liquidity activities with France and Portugal are among the reasons for growth in online poker revenues.
Last, but not least, online bingo has grown substantially as well. In Q1 of 2018, Spaniards played 30 per cent more online bingo compared to Q1 of 2014. Total online bingo revenues reached €3.5 million.
Even though online gambling revenues are substantially higher compared to figures from Q1 in 2017, however, GGR was 5.7 per cent lower than the amount collected in Q4 2017.
Horse Racing On The Rise
It is not only the online gambling industry that has grown substantially in Spain. According to statistics, Spaniards increasingly bet on horse racing. In fact, the horse racing sector marked an increase of more than 200 over the last five years. Back in 2013, GGR from betting on horse racing recorded roughly €21 million. In 2017, however, the horse racing sector generated over €90 million in revenues.
The Spanish Government To Cut Taxes
In April 2018, the Spanish government introduced its 2018 budget to parliament. The budget, which was approved by Prime Minister Mariano Rajoy, touches upon various subjects, including taxation on online gambling.
The budget suggests a tax cut of 5 per cent (from 25 to 20 per cent) on GGR. According to the government, this measure will attract licensed and renown operators to the flourishing online betting market in Spain. Moreover, government representatives say this measure will help reduce and eventually eliminate illegal gambling within the country.
Last, but not least, the proposed tax cut will remove any existing tax discrimination between different forms of gambling in accordance with the non-discrimination policies supported by the European Commission.
Jacop Lopez Curciel – chief executive of Optima, a sports betting and eGaming software provider – agrees that these measures could attract licensed operators to the thriving Spanish market. However, Mr. Curciel said that these measures could lead to over-regulation in the future, making the market outstandingly expensive and potentially shutting its doors to new operators.
In response to the proposed tax cuts, chairman of Jdigital—a Spanish gambling trade association—Mikel Lopez de Torre opines that it is difficult to predict what could happen if the 2018 budget is approved. He also emphasized that the country might find it challenging to accommodate 12 new brands on the market without offering at least some consolidation in the near future.