The headline figure from Spain’s Directorate General for the Regulation of Gambling (DGOJ) captures the essence of the country’s booming gambling industry, with a reported gross gambling revenue (GGR) of €1.24 billion for 2023. This reflects an impressive year-on-year surge of 28.4%, marking the most substantial growth since 2017 and a streak of increases for the Spanish GGR, with the exception of a dip in 2021.
The upward trajectory of Spain’s gambling market is evident in the rise in deposits and withdrawals by 15.5% and 10.1% respectively, as well as an uptick in the gambler base – more than 1.6 million active participants represent a 2.7% growth. The casino sector claimed the lion’s share of the GGR pie at 50.5%, translating to €624.8 million in revenue for 2023. This left sports betting trailing close behind at 39.8% with its contribution of €491.8 million. Other gambling forms like poker, bingo, and contests brought in €115.3 million, €14.4 million, and €480,000 in that order.
A closer examination reveals that casinos experienced a growth spurt of 25.3% from the previous year, driven in part by the increasing popularity of slot machines, which now account for 61.6% of the casino segment’s revenue, jumping by 28.1% from 2022. Sports betting, meanwhile, experienced an extraordinary 36.6% expansion, buoyed by a 48.7% jump in live in-play betting. Additional fixed-odds betting options also experienced a dramatic rise, skyrocketing by 191.9% year-on-year.
In contrast to these growing segments, poker reported a more modest rise of 16.9% in revenue, while bingo edged up by just 0.9%. The contest sector, however, experienced a significant contraction, witnessing a near-half decrease of 48% over the course of 2023.
The vigorous expansion of the gambling sector came along with a 7.6% increase in marketing spending, amounting to €402.8 million. Within this budget, sponsorship saw the most substantial hike at 38.4% year-on-year. Other categories including affiliates, advertising, and promotions experienced increases of 21.7%, 9.2%, and 2.8% respectively. Of the total marketing budget, promotions consumed the largest slice at €199.9 million, followed by advertising at €148 million. The division of the remainder included €50.6 million spent on affiliations and a further €4.3 million on sponsorships.
This surge in marketing expenses comes in the face of stringent efforts by the DGOJ to curb advertising even further in 2023, extending current limitations to the realm of lotteries. The controversial Royal Decree on Commercial Communications of 2020 marked a tightening in the rules: sponsorships with operators were banned, and advertising on TV, radio, and YouTube was corralled into the time slot between 1 am to 5 am. On social media platforms, operators are restricted to advertising solely to their followers.
These marketing restrictions are part of a wider initiative to promote responsible gambling across Spain. However, this initiative has been met with strong resistance from within the gambling industry, with association JDigital pointing out that Spain already has one of Europe’s most rigid regulatory landscapes.
Additionally, in March 2023, Spain’s council of ministers sanctioned over thirty measures targeted at protecting young people. These measures include recognizing at-risk gamblers as individuals who log a net loss of €600, or €200 for under-25s, over three consecutive weeks. Operators are now obliged to dispatch a warning message to players suspected of risky behavior and furnish them with a monthly gaming activity summary. Moreover, those identified as at-risk gamblers are prohibited from using credit cards for their gambling activities.
The data from the DGOJ serves as a clear indicator of the evolving landscape of Spain’s gambling industry, with revenue growth seemingly unhindered by the increased scrutiny and regulations being applied to the sector. As the Spanish market continues to adapt to both internal dynamics and external regulations, the forthcoming years will undoubtedly provide further insights into the resilience and adaptability of the country’s gambling entities.
