Notwithstanding Spanish gross gaming revenue (GGR) decline of 8% to €178.4 million in the second quarter of 2019 compared to the first one, the amount of revenue is still 7% bigger on a year-on-year basis.
According to the Spanish regulator (La Dirección General de Ordenación del Juego or DGOJ), the main reason for the recent drop is a sports betting industry decrease of 15% to €86.5 million in Q2 and its 1% drop compared to the last year’s revenue. Considering the fact that this segment generates almost half of total GGR (48.5%), the industry’s fall in the second quarter is natural.
Other segments such as bingo and poker have also demonstrated a small decline in Q2 (6% to €3 million and 9% to €19.4 million accordingly). However, the first one’s 8% year-on-year growth has not affected the overall results because of only 1.7% share in Spain’s GGR. On the other hand, poker’s decrease of 12% for the period has had a greater impact on the industry (10.9% of total revenue).
The only segment that has shown growth in both rates is the casino sector. Its revenue increased by 4% to €69 million in Q2, while a year-on-year growth reached impressive 22%. The online casino segment represented by 38 operators generates 38.7% of the country’s GGR, which provides industry growth.
The DGOJ also published information on online gambling operators’ marketing spending. Thus, it amounted to €82.5 million in Q2 (a year-on-year growth of 1%), which is 10% less compared to Q1. This drop is explained by reduced expenses on advertising and sponsorship.
As mentioned earlier, Spanish gambling operators are going to face new restrictions on advertising.