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Surging Waves of Spain’s iGaming Market

Surging Waves of Spain's iGaming Market
by
December 19, 2023
in Finance News, iGaming News
236

The iGaming market in Spain has witnessed substantial growth, reporting a noteworthy year-on-year surge in the first three quarters of the year. Despite a slight dip in activity compared to the second-quarter results, the latest report by the Directorate General for the Regulation of Gambling (DGOJ) unveils intriguing insights into Spain’s iGaming landscape.

Quarterly Performance

In the third quarter of 2023, Spain’s iGaming gross gambling revenue (GGR) reached €304.26 million (US$332.05 million), indicating a modest decrease of 2.67% quarter-over-quarter. However, the year-on-year growth is remarkable, standing at 23.6%. This marks the fourth consecutive year of expansion for Spain’s iGaming market.

Dominance of the Casino Segment

The casino segment emerged as the primary contributor, accounting for €160.26 million (US$174.91 million) or 52.67% of the total GGR. Live roulette and slots within this segment exhibited quarter-over-quarter variation rates of 5.43% and 8.09%, respectively. This dominance showcases the evolving preferences of Spanish iGaming enthusiasts.

In-Depth Analysis

The DGOJ’s report delves into key components, offering a comprehensive overview of GGR distribution, marketing expenses, and player activity across different game segments. This meticulous analysis provides stakeholders with valuable insights into the dynamics shaping the Spanish iGaming landscape.

Sports Betting Segment Challenges

The sports betting segment faced challenges, experiencing a decline of 14.86% quarter-over-quarter. The significant drops in prematch betting (-31.70%) and horse racing fixed-odds wagers (-9.52%) were notable contributors to this downturn.

Rise of Bingo and Poker

In contrast, bingo experienced growth with a 2.91% increase quarter-over-quarter, while poker posted a positive trend with a 4.09% increase in GGR. Both poker tournaments and cash games contributed to this upward trajectory, boasting quarter-over-quarter variation rates of 3.37% and 6.12%, respectively.

Contests Segment Fluctuations

The contests segment witnessed a substantial fall of 68.37% quarter-over-quarter, continuing an irregular pattern over the years. However, the annual variation rates for the contests segment reveal a stark contrast, with a remarkable rise of 56.64% year-over-year.

iGaming in the eCommerce Landscape

For several years, iGaming has consistently ranked among the top earners in the eCommerce industry. Even before the departure of the former Minister of Consumer Affairs, anti-gambling pundit Alberto Garzón, from his post, the iGaming sector maintained its robust performance in 2023.

Marketing Landscape

Marketing expenses decreased by 4.93% quarter-over-quarter, totaling €93.33 million (US$101.87 million). The breakdown includes €11.57 million (US$12.63 million) for affiliate agreements, €870K (US$950K) for sponsorships, €47.68 million (US$52.06 million) for promotions, and €33.2 million (US$36.24 million) for advertising.

Despite the quarterly decline in spending across all marketing segments, the year-on-year variation rates present a positive outlook. Sponsorships (153.04%), affiliates (15.96%), promotions (11.87%), and advertising (9.31%) have all seen substantial increases.

Player Activity Metrics

The monthly average of active game accounts experienced a 4.58% decline quarter-over-quarter but showcased an overall increase of 10.61% year-on-year. Similarly, the monthly average of new game accounts witnessed growth, with a 4.64% increase quarter-over-quarter and a 4.49% rise year-on-year.

Financial Transactions

Player deposits and withdrawals followed parallel trends, with year-on-year variation rates of 11.87% and 8.07%, respectively. However, quarter-over-quarter figures revealed a slight decline of 0.45% in deposits and a more notable 2.92% decrease in withdrawals.

Frequently Asked Questions (FAQ)

What contributed to the decline in Spain’s iGaming activity in the third quarter of 2023?
The decline in iGaming activity was attributed to a 14.86% quarter-over-quarter drop in the sports betting segment, particularly in prematch betting and horse racing fixed-odds wagers.

How did the casino segment perform in the third quarter, and what were the contributing factors?
The casino segment emerged as the front-runner, contributing 52.67% of the total GGR. Live roulette and slots within this segment exhibited quarter-over-quarter variation rates of 5.43% and 8.09%, respectively.

What were the key findings regarding marketing expenses in Spain’s iGaming market?
Marketing expenses decreased by 4.93% quarter-over-quarter, with positive year-on-year variation rates in sponsorships (153.04%), affiliates (15.96%), promotions (11.87%), and advertising (9.31%).

How did the contests segment perform, and what trends were observed over the years?
The contests segment witnessed a significant fall of 68.37% quarter-over-quarter, continuing an irregular pattern. However, the annual variation rates revealed a notable rise of 56.64% year-over-year.

Has the iGaming sector consistently been a top earner in the eCommerce industry?
Yes, for several years, iGaming has consistently ranked among the top earners in the eCommerce industry, maintaining its robust performance in 2023.

Who is Alberto Garzón, and how did his departure impact the iGaming sector?
Alberto Garzón, the former Minister of Consumer Affairs and an anti-gambling pundit, stepped down from his post. However, the iGaming sector continued its strong performance in 2023.

What were the trends observed in player activity metrics in the third quarter?
The monthly average of active game accounts declined by 4.58% quarter-over-quarter but showcased an overall increase of 10.61% year-on-year. New game accounts also witnessed growth.

Which game segments contributed to the positive trend in the iGaming market?
Bingo experienced growth with a 2.91% increase quarter-over-quarter, and poker posted a positive trend with a 4.09% increase in GGR, driven by poker tournaments and cash games.

How did financial transactions, specifically deposits and withdrawals, fare in the third quarter?
Player deposits and withdrawals followed similar trends, with year-on-year variation rates of 11.87% and 8.07%, respectively. However, quarter-over-quarter figures revealed a slight decline in deposits and withdrawals.

What is the overall outlook for Spain’s iGaming market based on the third-quarter results?
Despite a slight dip in activity compared to the second-quarter results, the third-quarter report indicates a significant year-on-year jump, marking the fourth straight year of growth for Spain’s iGaming market.

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