Spain’s GGR Shoots Up By 51% Even With Strict Advertising Restrictions
- Gross gaming revenue for Q1 of 2023 is up 51% from the same period last year
- Among the key contributors is the casino segment, as well as sports betting
- Latest figures show Spain’s gambling market continues to grow despite stringent marketing restrictions
Spain’s gambling industry continues to grow even as the country implemented severe restrictions on gambling advertising.
The Directorate General of Gaming (DGOJ), which oversees the Spanish gambling market, recently released its financial report for the first three months of 2023, and the latest results indicate significant growth for the sector when compared to the same period last year.
This means that the near blanket ban on gambling advertising and marketing, which was fully implemented in Spain since the summer of 2022, is not having much of an impact on the industry’s growth.
Spain’s Gambling Sector Enjoys 51% Annual Growth
According to the latest figures from the DGOJ, licensed operators generated €304.92 million in gross gaming revenue (GGR) in the first quarter of 2023, and while this represents a 2.8% decline from the last quarter, the market still enjoyed year-on-year growth of 51%. It should be noted that revenue for the prior quarter was boosted by the 2022 FIFA World Cup.
The casino segment was the best performer for Q1 of 2023, generating €143.36 million (47.02% of total GGR), up 0.64% from the previous quarter and an increase of 29.19% from Q1 of 2022.
Sports betting accounted for 42.8% of total GGR, bringing in €131 million to the sector in the three months to March. While that’s down 7.65% from the previous quarter, the latest result is up 100.10% year on year.
Industry Can Grow Despite Advertising Restrictions
Gambling operators saw their marketing spend decrease by 13.08% from the past quarter as they continue to adjust to strict marketing measures implemented under Royal Decree 958. The new rules include restrictions to gambling sponsorships, social media advertising, welcome bonuses, and other promotional activities. New accounts also dropped by 15.78% compared to the previous quarter.
The latest figures show that the industry can continue to thrive despite stringent advertising restrictions, and it can very well achieve bigger growth in the future if it strives to adapt its strategies to the existing rules, the DGOJ stated.
The Spanish online gambling industry is bracing for further regulatory changes, with the upcoming implementation of the Royal Decree on Responsible Gaming Environments. Under this latest decree, operators will be required to comply with the “toughest” measures yet aimed at strengthening protections for vulnerable custom6ers, especially minors and young people.