BUSINESS

Casino, Sports Betting Lift Spain’s Q2 Revenue

TAGs: Leonard Postrado, revenue, spain

Spanish online gaming and casino revenue continue to track an upward trajectory in the second quarter of 2016 while poker continues to disappoint.

In a report posted on its website, Spanish regulatory body Dirección General de Ordenación del Juego (DGOJ) reported a robust eGaming market as its gross gaming revenue (GGR) jumped 56 percent to €99 million (US$112.18 million) from April to June period compared to the same period in 2015.

Casino, Sports Betting Lift Spain's Q2 RevenueThe DGOJ pointed out that the casino was the best performer among the three gambling sectors, posting a 91 percent year-on-year growth due to an expanding slots market and live roulette. Data showed that live roulette contributed 48 percent of total roulette revenues in the second quarter.

An increase in live betting and forex market lifted the GGR of sports betting by 70 percent in the April to June period.

“Online gambling in Spain continues to grow moderately,” said Spanish gaming consultant Eduardo Morales Hermo. “The incorporation of slots has helped participation in casino games, while growth in roulette was driven by live offerings.”

Meanwhile, Spanish poker remains the worst peformer as revenues generated from its dropped  by10 percent in the second quarter, with cash games falling 67 percent.  By GGR, betting accounted for 54 percent of the market, casino 28 percent, poker 14 percent and bingo 3 percent.

“The pending issue for sports betting is the need to achieve a gross margin around 7 percent, as seen in other markets. The current 4.5-5 percent is relatively a very low margin and needs a larger volume or scale to achieve positive operating results,” Hermo explained.

He added that the market was still controlled by half a dozen international operators (bet365, William Hill, bwin, 888, PokerStars, and Sportium), with national operators like Luckia, Casino Barcelona, Vive La, still fighting for market share.

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