Online Gambling in Spain Rises in Q2 2018; Poker Playing Drops

- August 29, 2018 By Oliver Young -

Spain online gambling revenue keeps rising

Online gambling revenue continues healthy growth, driven by betting and casinos, while poker playing drops 9.6% since first quarter.

According to the latest figures issued by Spain’s DGOJ (Dirección General de Ordenación del Juego) this week, the online gambling market in the country is continuing its healthy growth in the second quarter of 2018. Reportedly, the online gambling industry has generated a total of €167.2 million during the second quarter of 2018 alone – a number that surpasses the amount earned by the overall online gambling industry in Spain during its first years several times.

40% Growth; Slots Lead the Way

As indicated by the numbers, online gambling revenue increased by 40.1% year-on-year. This growth was mostly driven by online sportsbetting revenue which marked a similar increase, reaching a total of €87.6 million or 46.7% more than the same period in 2017. For comparison, online casinos generated €56.5 million in revenue for the second quarter or 36.9% more than Q1 of 2017. The major factor driving online casino numbers was online slot machines, which generated 51% of the total revenue.

The online bingo sector in Spain likewise did well during the period, marking a 16.9% year-on-year increase to €3.3 million. The number of player registrations also increased by a whole third when compared to the second quarter of last year, amounting to a total of 268,000 registered customers. The same can be said for the number or regular monthly users which increased 31.7% year-on-year to a total of 860,000.

For the said period, online gambling operators in the country spent a total of €81.3 million on advertising, or 55.2% more than Q1 2017. Out of this sum, €41.1 million were invested in promotions, €8 million in affiliate marketers, and €3 million in sponsorships.

At present, the government is preparing to reduce online gambling taxation to 20% of the Gross Gaming Revenue (GGR) rather than the current 25%. If the proposed changes come into effect, online gambling revenue is expected to grow even further. Back in April, there were estimates that online gambling in Spain could become a €billion industry within the next five years.

Online Poker Revenue Declines

DGOJ’s latest numbers also revealed that online Poker revenue, although it grew year-on-year, was down when compared to the first quarter of 2018. Namely, the total online poker revenue for Q2 this year was €19.5 million or 34.8% more year-on-year, but 9.6% less when compared to the first quarter. The biggest decline was noted on cash games, which dropped by 18.1%, while tournaments dropped by 3.8%.

The numbers come as a surprise because the first quarter of the year gave promising results, following the opening on cross-border liquidity pools between France and Spain by PokerStars. According to the financial report, the decline is blamed on the 2018 World Cup which drew players’ attention from online Poker.

The total amount of revenue generated by cash games was €6.9 million for the period while tournaments generated almost double that amount or €12.6 million. For comparison, during the second quarter of 2017 the drop in cash games revenue was only 5.5%, but then again tournament fees also increased by 16.5% since 2017, which could explain the current numbers.



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