Spain gambling sector sees increase In Q3 2022 gross gaming revenue
The Spanish gaming sector has recorded strong results once again for the third quarter of 2022.
The market has produced impressive results in four consecutive quarters where the gross betting revenue recorded was lower than 2.5% of turnover.
The Directorate General for the Regulation of Gambling (DGOJ) for the country released the latest figures for the third quarter of 2022.
The period saw an over 18% increase in gross gaming revenue (GGR) compared to the previous quarter. It is also 31.3% higher than the amount recorded for the same period in 2021.
The GGR in total amounted to €240.83 million (US$255.23 million) for the third quarter, which came to a close on September 30. The record was a result of widespread improvements in all verticals.
The nation’s online gaming segment has proven to be a strong economic driver and, between Q2 to Q3, increased by 9.2%, totalling €128 million (US$135.65 million) during this period. Q2 previously recorded €117.2 million (US$124.2 million).
iGaming has shown considerable improvement in the past year, and Q4 is expected to yield even better results as soon as the figures are made known. Online slot machines have been an easy and accessible option for gamblers who prefer to place bets online. Live roulette is worth 28.8% of the market share, while slot machines are much higher, with 62.4%.
The Q3 amount also includes the €89.04 million (US$94.36 million) obtained from sports betting revenue. The earnings contributed to 36.97% of the sector’s profits and are 46.2% higher than the Q2 results and 48.61% more than the same period in 2021.
The 4.1% rise in betting margins is a major reason sports betting revenue for the period saw such a significant increase. The margins also increased significantly compared to the previous quarter’s 2.2% ratio experienced by the sportsbook operators.
Compared to the previous year, withdrawals increased by 24.85%, and player deposits saw a 26.72% growth. The withdrawals and deposits saw an 8.7% and 4.6% rise, respectively, compared to the earlier quarters.
Turnover for the period, however, saw some decline. Compared to Q2, market expenditure had a 7.79% increase. New accounts for the period also decreased by 4.01%.
Poker revenue was 8.36% of the total revenue, with €20.14 million (US$21.34) recorded. Poker experienced a 10.64% quarter year-over-year decline; however, it was 2.83% more than a year prior.
Bingo contributed 1.53% to the Q3 revenue with €3.68 million in earnings. The activity had a 9.23% increase compared to Q2. It also has a 4.64% increase compared to Q3 of 2021.
There was a 9.22% improvement in the casino segment compared to Q2 2022 and 27.55% to Q3 2021. The sector contributed 53.13% of the total revenue, with €127.95 million. Bankruptcies had a 215.94% growth in the third quarter of 2022; however, it was 72.10% lower than the year prior.
Per the report, the Spanish gambling sector spent €96.31 million (US$102.07 million) on marketing. The amount is 7.8% more than the previous quarter and a 7.3% increase compared to Q3 2021.
€10.34 million out of the Q3 2022 amount was put into affiliation expenses, €41.47 million was spent on promotion, and 42.73 million was used for advertising. Sponsorships were on the rise during this period, and the sector spent €1.78 million (US$1.9 million) on it.
Active gaming accounts saw a monthly average of 999,322, that served to strengthen the GGR’s increase. The amount was only 0.07% less than the last quarter. However, it is 9.18% higher than in the same quarter in 2021. Spain has 78 licensed operators, which will see 109,312 new members on average monthly.
The sector’s increase in performance comes at a time Spain issued regulations that crippled gambling operators ability to advertise their products. Several restrictions have been placed on the operators dictating their promotion methods and sponsorship deals with numerous sports and teams.
Per the restrictions, gambling and betting ads are prohibited between 1 am to 5 am. The operators were also made to include fewer welcome bonuses and ensure new members spend some time in the casino before receiving welcome bonuses. This will stop them from moving from one operator to another after receiving the bonus.
As evidenced by the marketing expenditure, Spanish gaming operators are still trying their best to advertise their products and services to potential customers.