Spain reported a Gross Gaming Revenue (GGR) from their regulated online gambling market of €191.7 million for the third quarter of 2019, which reflects an increase of 5.4% year-on-year and a 7.5% increase from the second quarter.
The revenue growth is due in part to the country’s online sports betting market having been able to do a rebound after a challenging second quarter. The second quarter had the market suffering from a lack of major summer sporting event. The sector’s third quarter revenue rose to €100.8 million, which is a 3.2% improvement from the previous year, as well as a 16.6% growth from the second quarter.
And although it still logged decrease from last year results, pre-match betting was able to contribute €40.1 million to the total revenue. The dip was, fortunately, more than recovered by the revenue growth logged by the live betting market, which rose to €57.9 million. For its part, the online casino market contributed €66.5 million to the third quarter total.
Betting revenue comprised about 53% of the country’s total GGR, while casino revenue made up 35%, poker revenue comprised 11%, and bingo revenue made up 2%. Betting revenue marked an increase of 17% when compared to the second quarter, and a three percent increase from the same period in 2018. Bingo revenue rose by 5% from the second quarter and by 1% from the same period last year.
Poker revenue grew by 6%, which is primarily due to the steadily growing popularity of tournament poker, which logged an increase of 12% in their revenue for the third quarter of 2019. Casino revenue is the only segment that suffered a loss when compared to the second quarter, reflecting a 4% drop. In a year-on-year comparison, however, the segment was still able to log an increase of 9%.
The monthly average of active accounts in Spain for the quarter was 869,499. This is an increase of 1% from 2018. The monthly average of new accounts in the country for the same period was 253,678. This reflects an 8% increase from the second quarter.
Marketing spend was also reported for the third quarter, and Spain logged in at €82.3 million, with the 6% annual growth being attributed to a 46% increase in sponsorships and 11% in affiliates. It may be worth noting that Spain is now hosting 80 licensed operators, with five more having received their licences during the quarter, including LeoVegas in July.
It is believed that the start of the European football season in the third quarter prompted at least some of the increase in marketing spend by Spanish licensees. Gambling operators reported spending €5.5 million on sponsorship deals during that quarter. Affiliate marketing spending was increased to €9.6 million this year.
The Spanish online gambling market has been regulated since 2013, and regulation has mostly been successful. The success of regulation is one of the biggest reasons why the market continues to see a healthy growth.