SBC News DGOJ: Spanish Gambling maintains growth amid Advertising blackout

DGOJ: Spanish Gambling maintains growth amid Advertising blackout

Spain’s gambling market experienced considerable growth in the first quarter of 2023, despite a significant reduction in marketing expenditure, according to the latest report from the Directorate General of Gaming (DGOJ).

The gambling authority published its Q1 financial report, detailing the continued growth of the sector as licensees grapple with stricter regulatory constraints on advertising and customer care duties.

The report revealed a year-on-year growth of 51%, with the industry’s gross gaming revenue (GGR) standing at €304.92m for Q1 2023. However, while growth was maintained, the GGR does reflect a 2.8% drop from the previous quarter, which was bolstered by the FIFA Qatar 2022 World Cup driving the market’s betting volume.

Sports betting emerged as a key growth driver for the market’s performance, contributing €131m (42.8%) to the total GGR. Although the sector saw a 7.65% decrease from the last quarter, it experienced a remarkable increase of 100.10% compared to Q1 2022.

Leading the sectoral contribution was the casino segment, responsible for 47.02% of the total quarterly revenue, equating to €143.36m. The DGOJ noted that the casino sector experienced “moderate quarterly growth of 0.64% but a significant annual growth rate of 29.19%.” This year-on-year growth was primarily driven by the performance of slot machines and live roulette, which grew by 31.29% and 32.19% respectively.

In Q1, Spanish operators continued adjusting to the marketing restrictions of the Royal Decree on Communications, fully enforced since the summer of 2022. Since the implementation of this Decree, which imposed restrictions on sponsorship agreements, bonuses, promotions, and advertising in the gaming sector, marketing expenditure fell by 13.08% compared to the previous quarter. This decrease coincided with a 15.78% reduction in the opening of new accounts.

The DGOJ concluded that “future growth will likely depend on the industry’s ability to continue evolving its strategies to work within the existing advertising constraints.”

During H2, Spanish online gambling incumbents will be required to begin integrating new KYC, customer monitoring, and compliance provisions sanctioned by the Ministry of Consumer Affairs.

In 2023, Spain will adopt the “Royal Decree on Responsible Gaming Environments,” enforcing Europe’s most stringent compliance and KYC rules to protect underage and vulnerable consumers.

However, prior to the Ministry’s demand, Spain enters a period of political uncertainty. Following a wipeout at the regional and local elections in May, the government of Prime Minister Pedro Sanchez has advanced the country’s General Election to 23 July.

SBC News DGOJ: Spanish Gambling maintains growth amid Advertising blackout

Check Also

SBC News Spain's Influencer Law to carry Decree rules on Gambling Advertising

Spain’s Influencer Law to carry Decree rules on Gambling Advertising

Spain aims to be Europe’s trailblazer by adopting the first dedicated framework to regulate the …

SBC News Spain's Gambling Minister warns of tougher advertising restrictions

Spain’s Gambling Minister warns of tougher advertising restrictions

Spain’s Ministry of Consumer Affairs will prioritise restoring gambling advertising restrictions as intended by the …

Jdigital: Spanish reforms cannot move forward amid political deadlock

Supreme Court of Spain sides with Jdigital on Decree annulments

The Supreme Court of Spain has ‘partially annulled’ certain articles of the Royal Decree on …