The Spanish gaming sector has experienced a significant improvement, with gross betting revenue showing a consecutive increase for the past four quarters. In the three-month period ending on September 30, the gross betting revenue (GGR) reached €240.8m (£212.9m/$253.7m), marking an 18.1% quarter-on-quarter increase and a 31.3% year-on-year growth. Within this total, betting revenue accounted for €89m. The upward trend continued throughout 2022, with revenue increasing by 46.2% compared to the previous quarter and by 103.6% from €43.7m, primarily driven by a rise in betting margins to 4.1%.
While turnover declined, live sports betting emerged as the dominant segment, increasing from 47.3% to 56.9% of the total market from Q2 to Q3. Pre-match sports betting constituted 39.6% of total revenues, resulting in €35.2m in GGR during the period.
The online casino sector also witnessed steady growth, with total stakes and GGR increasing from €117.2m to €128m from Q2 to Q3, indicating a 9.2% rise. Online slots accounted for the largest share at 62.4%, followed by live roulette at 28.8% of the total revenue.
In 2020, Spain implemented marketing restrictions on gambling activities through the Royal Decree on the Commercial Communications of Gambling Activities. These laws limited TV and radio ads to the hours between 1am and 5am, prohibited sponsorship deals with operators, and restricted the advertising of welcome bonuses. Consequently, marketing spend in Spain had declined significantly. However, there are signs of growth in Q3, with total spend amounting to €96.31, a 7.8% quarter-on-quarter increase and a 7.3% annual rise. Advertising, constituting the largest segment at €42.7m, witnessed revenue growth along with affiliates. Additionally, sponsorship deals, a smaller section of the market at €1.8m, experienced a remarkable quarter-on-quarter growth of 373.7%, indicating organizations adapting to the regulations.
