Spanish Online Gambling Market
Almost every European country saw a substantial growth of its gambling industry over the last few years. Spain, however, saw a growth in its online gambling industry that is beyond dramatic.
While land-based gambling in Spain has remained rather stable over the last few years, generating
€340 million in revenues in 2015 and 2016 (and just an additional million in 2017), online gambling has recorded an amazing growth in just a few years.
Having a sole corporate purpose to organise, market and operate gambling activities. A minimum total and paid-up share capital of €100,000 to request a general licence for bets and other games, or €60,000 to request only a general licence for contests. EGT gains ground in Spanish B2 market. October 22, 2020. INTERGAMINGi is the leading publication for the growing international online gaming industry. The Spanish online gambling market continues to grow despite a slowing Eurozone economy. Since 2014, the whole online gambling market revenue grew by 270% and it could continue expanding in the future reaching all-time highs. Spanish Online Gambling Market Revenue Surges.
The Outstanding Growth of Online Casinos
Spain's online gambling industry has grown substantially over the past five years. Spain opened the online betting market rather late – in 2012, and just a year later the industry generated €60.84 million in revenues.
Statistics provided by Spain's gambling regulator—the Dirección General de Ordenación del Juego or the Directorate General for the Regulation of Gambling (DGOJ)—show that the Spanish online gambling market surpassed the €10 billion turnover between 2015 and 2016. Figures show that online gambling generated only €8.56 billion in 2015. Spain also witnessed a 34 per cent growth in GGR, amounting to €429 million between 2015 and 2016.
But the Spanish online betting industry kept on growing. Statistics from 2017 show that online GGR for sports wagering and casino gambling has rocketed to €560 million. According to data, sports betting accounts for nearly a half of all revenues.
According to mobilecasinohub.com, Spain's online betting market will most likely hit over €1 billion in the next three to five years.
The Upward Trend To Continue in 2018
Looking at figures from Q1 of 2018, Mr. Tirabassi's prognosis might be just right. According to DGOJ's report, Spain's online betting industry marked a 27 per cent increase in GGR between January and March 2018, recording €163.3 million.
Not surprisingly, sports betting accounted for over half of all revenues, generating a total of €81.9 million and marking a 16 per cent growth in GGR compared to 2017 figures. Data shows that 62 per cent (€51.1 million) of the whole is acquired from live betting. On the other hand, pre-match betting accounts for €28.6 million. Surprisingly, horse betting recorded just €1.3 million.
According to DGOJ's report, online casino revenues accounted for €56.6 million of the total. The report also paid attention to the continuing increase in online poker revenues – online poker revenues amounted to €21.5 million. Cash games contribute €8.4 million to the total, whereas poker tournaments accounts for €13 million. According to experts, liquidity activities with France and Portugal are among the reasons for growth in online poker revenues.
Last, but not least, online bingo has grown substantially as well. In Q1 of 2018, Spaniards played 30 per cent more online bingo compared to Q1 of 2014. Total online bingo revenues reached €3.5 million.
Even though online gambling revenues are substantially higher compared to figures from Q1 in 2017, however, GGR was 5.7 per cent lower than the amount collected in Q4 2017.
Horse Racing On The Rise
It is not only the online gambling industry that has grown substantially in Spain. According to statistics, Spaniards increasingly bet on horse racing. In fact, the horse racing sector marked an increase of more than 200 over the last five years. Back in 2013, GGR from betting on horse racing recorded roughly €21 million. In 2017, however, the horse racing sector generated over €90 million in revenues.
The Spanish Government To Cut Taxes
In April 2018, the Spanish government introduced its 2018 budget to parliament. The budget, which was approved by Prime Minister Mariano Rajoy, touches upon various subjects, including taxation on online gambling.
The budget suggests a tax cut of 5 per cent (from 25 to 20 per cent) on GGR. According to the government, this measure will attract licensed and renown operators to the flourishing online betting market in Spain. Moreover, government representatives say this measure will help reduce and eventually eliminate illegal gambling within the country.
Last, but not least, the proposed tax cut will remove any existing tax discrimination between different forms of gambling in accordance with the non-discrimination policies supported by the European Commission.
Jacop Lopez Curciel – chief executive of Optima, a sports betting and eGaming software provider – agrees that these measures could attract licensed operators to the thriving Spanish market. However, Mr. Curciel said that these measures could lead to over-regulation in the future, making the market outstandingly expensive and potentially shutting its doors to new operators.
In response to the proposed tax cuts, chairman of Jdigital—a Spanish gambling trade association—Mikel Lopez de Torre opines that it is difficult to predict what could happen if the 2018 budget is approved. He also emphasized that the country might find it challenging to accommodate 12 new brands on the market without offering at least some consolidation in the near future.
With the digital revolution in full swing and the ease of government regulations on gambling, the sports betting industry is undergoing dynamic transformations over the last few years and consequently surging in popularity around the word, the revenues of many world’s leading sports betting companies are also growing significantly year on year. Today, sports betting has become one of the fastest growing industries across the world, offering immense potential for both bettors and sportsbooks. Some of the popular games for sports betting include horse racing, greyhounding, cricket, football, baseball, basketball and golf.
For the latest online gambling market size, sports betting market forecast, and top sports betting companies in the world, please see our report Global Sports Betting Market 2018-2022, or download your FREE Global Sports Betting Market Report Sample now!
Global Sports Betting Market Analysis
Over the last few years, the world has opened immense opportunities for gamblers to take part in sports betting anywhere in the world through digital platforms, except in those nations where betting is banned. The global sports betting sector occupies the major market share in the overall online gambling industry accounting for more than 40 % of the worldwide gambling revenue generation. According to the Technavio’s market analysts, the sports betting market will grow at an impressive CAGR, with the global sports betting market revenue expected to reach nearly $370 billion by 2022.
Read more:How Is the Online Gambling Industry Making Room for the Next Unicorn Company?
Top 10 Sports Betting Companies in the Global Gambling Industry
Spanish Online Gambling Marketing
888 Holdings
888 holdings is one of the most popular online gaming operators, which operates 888 sports, casino, poker, and bingo brands. Since its launch in 2008, 888 Sports has been successful in establishing a strong presence in the online sports betting market. The online betting site breaks away from the traditional bookies with exclusive customer deals, a range of new markets and an international appeal. Although the company exited US market long back owing to the strict government regulations, they have been keeping a close eye on regulatory developments in the US.
Today, 888 has already positioned itself in the market by partnering with the US-based companies. The potential for the sports betting sector in the US is significant and, as the only firm in all three regulated US states, 888 is all set to exploit the potential growth opportunities in the US market.
Read more:The Game is on! Here are the Top 15 Online Gaming Companies
GVC Holdings
GVC Holdings is one of the largest sports betting companies and gaming groups. With its unique proprietary technology platform, GVC offers casino, poker, bingo, and sports betting under some of the industry’s most popular online betting brands including partypoker, CasinoClub, Betboo, Bwin, Foxy Bingo, and Sportingbet. In a spell of acquisitions, GVC Holdings made a milestone €1.1 billion acquisition of online gaming brand bwin party in 2016 and acquired UK rival Ladbrokes Coral in March 2018.
Further, GVC Holdings also confirmed a $200 million joint venture deal with MGM Resorts recently that will see the former transfer its online sports betting know-how to the latter. This deal will soon lead to the launch of a wide range of sports betting sites in the US.
Kindred Group
The Stockholm-listed online gambling company, Kindred, continued their record-breaking financial performance in 2018, thanks to the all-time growth of their active customer-base and the 2018 FIFA world cup, that led to higher active users. Today, the company is regarded as one of the world’s leading online gambling brands within the sports betting arena. Kindred Group recently signed a 5+5-year agreement with Casino Atlantic City and Hard Rock Hotel in New Jersey. This move is Kindred’s first step into US gaming, with a view to offering online sports betting services to US customers.
Spanish Online Gambling Marketplace
Kindred’s major revenue comes from casino games and online sports betting. With these two segments which generated respective revenue of £104 million and £104.9 million during Q2, Kindred continues to witness significant online organic growth.
Spanish Online Gambling Markets
Read more : Why Sports Betting Accounts for the Largest Share of the Gambling Market
Paddy Power Betfair
Paddy Power Betfair was born following the merger of Paddy Power plc and Betfair Group in February 2016. Today, the business has four divisions: Online Australia, Irish Retail, UK Retail, and Telephone segments. The company’s Online Australia segment provides sports betting services and is the market leader in the Australian gambling industry. Its UK and Irish Retail segment operate 623 betting shops across Ireland and UK. It has a presence in Australia, United Kingdom, Ireland and across the world.
Paddy Power Betfair provides gaming and sports betting services through websites including betfair.com, paddypower.com, tvg.com, sportsbet.com.au, and us.betfair.com under the Betfair, Sportsbet, Paddy Power, and TVG brand names, and through a chain of licensed betting offices.
William Hill
Since 2012, when the UK-listed bookmaker merged three businesses to establish William Hill US, the company has grown consistently to achieve the market share of around 30 %, making it one of the largest sports betting companies in the UK and the US. William Hill is one of the early movers to reap the benefits from the legalization of sports betting in the US after the Supreme Court’s decision in May to strike out a federal ban passed in 1992. William Hill US is already the leading sports betting company in the US, operating more than 108 race and sports books in Nevada along with the state’s top mobile sports betting app.
The sports wagering giant signed sports betting agreements with a number of casinos in the US last month and is in talks with more operators. The company is ramping up hiring in Nevada for growing its US business. The company announced that it will offer mobile betting technology and sports betting risk management services to 11 casinos in Mississippi and West Virginia.
Download related report sample for free:Global Mobile Gambling Market 2017-2021
Bet365
Having added a vast range of betting options and products to their core over the past several years, Bet365 has grown to be one of the largest firms in the sports betting industry. Bet365 was one of the first sports betting company to start offering eSports to bet on. This British online gambling and sports betting company serves more than 23 million customers across the world by offering poker, casino, games, bingo, and sports betting, along with video streams on sporting events. The company recently inked a partnership with another sports betting company – Hard Rock Atlantic City casino to offer sports betting service
Stars Group
The ultimate owner of the most popular gaming brands such as PokerStars, BetStars, PokerStars Casino, and Full Tilt, Star Groups (formerly known as Amaya Gaming) recently announced that it has successfully acquired the Sky Betting and Gaming (SBG). This deal will turn the online poker giant into the largest sports-betting company in the world. Stars Group is one of the most licensed online gaming operators with its subsidiaries holding approvals and licenses in 19 jurisdictions across the world, including the Americas, Australia, and Europe. Star Group brands have millions of customers globally and are leaders in mobile and online betting, casino, poker, and other gaming-related offerings.
Download related report sample for free: Global Online Gambling Market 2018-2022
Draft Kings
DraftKings is one of the most popular daily fantasy sports content providers that allows users to enter fantasy sports-related contests based on team and individual player performance in five largest American sports (the NBA, MLB, the PGA, the NFL, and the NHL), NASCAR auto racing, Premier League and UEFA Champions League soccer, the Arena Football League, Canadian Football League, Mixed Martial Arts (MMA) and Tennis. After the US Supreme Court cleared the way to legalize sports betting, DraftKings got to work immediately, as sports gambling will account for a major share of their business.
Betsson
Betsson is an award-winning sports betting website that has been around since 2006 and literally grew into a gambling empire. The company provides users from all over the world an option to play poker, casino, bingo games and place their bets on various sports events. Betsson is based in Malta and holds a betting license from the gambling commission in the same country as well as one from the United Kingdom as well. Today, its sports betting option is offered on various markets and more and more consumers choose it as a significant option for sports betting.
BetAmerica
BetAmerica made its name in online gambling industry through horse racing, which then branched out into fantasy sports with the launch of FanEx Sports. Today, BetAmerica.com is considered as one of the most legal and secure sports betting companies based in the US. With a wide range of fantasy leagues for MLB, NFL and NBA and more than 200 racing tracks to choose from, BetAmerica is all set to grab the major share in the sports betting industry.
To find out other major sports betting companies in North America, Europe and Asia, download your FREE Global Sports Betting Market Report Samplenow!
Global Sports Betting Market Trends
Online betting was brought into the sports industry in the late 1990s and has been growing significantly since then. With the emergence and high penetration of the digital platform, punters have the flexibility in placing bets on sports from any part of the world. Indeed, the digital revolution has given sportsbooks a platform to connect with new customers. Online gambling is one of the fastest growing sectors in the e-commerce industry and is a rapidly growing mode of gambling. The use of digital processes and the growing punter demand will propel the growth of the online gambling industry, while the major sports betting companies in the world are also expected to achieve higher revenues in the near future.
For more market intelligence in the global sports betting market, please check this following report: