Spanish gaming revenue falls against in Q1

Spanish gaming revenue falls against in Q1

Casino revenue rose but total revenue was down due to low margins in sports betting.

Spain.- The latest figures from the Spanish gambling regulator, the Dirección General de Ordenación del Juego (DGOJ), show that gambling revenue in Spain fell by 14.8 per cent year-on-year in Q1. Gross gaming revenue came in at €204.4m.

The decline was mainly due to low margins in sports betting despite an increase in stakes to record levels. However, revenue was up sequentially, rising 16.3 per cent from the previous quarter.

Stakes were €7.41bn, a rise of 5.3 per cent year-on-year. Deposits totalled €769.8m, a rise of 4.3 per cent year-on-year and 7.1 per cent from the last quarter.

Sports betting stakes rose 10.6 per cent year-on-year to €3.06bn but revenue was down 40.9 per cent year-on-year (but up by 49.1 sequentially) at €65.2m. The margin was 2.1 per cent in sports betting as a whole and just 1.4 per cent in horse racing betting.

Casino gaming generated revenue of €111m, a rise of 11.5 per cent year-on-year, from stakes of €3.72bn. Slots accounted for €64.9m of revenue (a rise of 1.2 per cent) and roulette €34.3m (a drop of 5.2 per cent). Poker generated €20.5m in revenue, down 2 per cent year-on-year, and bingo €3.6m.

Market spending fell dramatically due to Spain’s new advertising restrictions, dropping by 27.7 per cent year-on-year. Spending on sponsorship effectively dried up due to the ban on sports partnerships, falling from €9.4m to €632,784. But the new restrictions appear to have benefited affiliate marketing, where spending rose by 84 per cent to €22.7m.

In November, Spain’s Ministry of Consumer Affairs introduced restrictions limiting gambling advertising to between the hours of 1am and 5am. The igaming association Jdigital launched an appeal against the measure together with Spanish media body the Asociación de Medios de Información (AMI). They claim that the royal decree should have received constitutional approval before it could be imposed.

However, Jdigital has reported that its appeal against the royal decree on gambling ads is to move forward. The Supreme Court has decided that the appeal should get a constitutional review.

See also: Cordish Companies presents new plans for Eurovegas mega casino in Madrid

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