Spanish market grows 30% in Q3 2018
Gross Gambling Revenue (GGR) was up almost 30% in quarter three (Q3) in Spain thanks largely to growth in sports betting and online casinos.
Figures released by the Dirección General de Ordenación del Juego (DGOJ) show GGR hit €181.7m for the period, a 30% rise on the year.
Online casinos was the biggest growth vertical. Online casinos drew €60.8m for the period, a 39% rise on the year, contributing a third of total revenues.
Sports betting revenues were also up almost a third (27%). Sports betting continues to be the biggest contributor for the sector in Spain. The €97.6m revenues raised from sports betting accounted for 53% of Spain’s GGR for Q3.
The report also made mention of marketing spend, which grew dramatically. This was buoyed in large part by advertising spending nearly doubling, with a 92% rise on the year. Marketing spend broke down to: €36.3m spent on advertising, €28.5m on promotions, €3.5m on sponsorship, and €7.4m on affiliates.
The userbase continues to grow, with the number of monthly users growing by 31% to 812,007. However, new registrations decreased by 2% to 232,012.
The figures suggest that operators continue to enjoy the blossoming Spanish market. Back in July, a 5% tax break for the sector was voted through in Parliament.
The ever increasing advertising spend also mirrors other more mature markets. Bet365 penned a deal with 10 La Liga football clubs before the start of the 2018/19 football season and is more prominent in the market.
However, the marketing figures pale in comparison to advertising spends in markets such as the UK. A recent report from GambleAware showed that operators had spent almost £1.5bn on marketing since 2015, the majority of which went online.
The pressure continues to be ramped up on how and when gambling operators can advertise, with particular concern surrounding children viewing such advertisements.
That pressure, in the UK at least, is mostly being exerted on adverts broadcast on television. However, looking at the breakdown of operators’ advertising spends, it appears that policy makers should direct their focus at online advertisements.
You can read the market report in full on the website of the DGOJ.