Spanish market falters as GGR declines in Q3
Country's online gambling market suffers second consecutive fall in gross gaming revenue as absence of slots continues to be felt
The Spanish online gaming market contracted yet again during the third quarter of 2013 as gross gaming revenue (GGR) fell 7% to 51.6m.
The Q3 fall comes on the back of an 11% decline in Q2 and means that online GGR in Spain has fallen almost 20% in six months since it recorded 61.6m in Q1.
The sports betting vertical again lead the way with a 47% share of GGR, followed by poker on 30% while bingo trailed behind on 4%.
Casino continued to struggle in the absence of online slots regulation, which is expected to be introduced in early 2014, contributing just 16% of total GGR.
Despite the decline in gaming revenues, overall stakes remained broadly flat quarter-on-quarter at £1.3bn, although this is slightly down on the £1.4bn recorded in Q1.
Spanish gaming consultant Eduardo Morales Hermo told eGaming Review the country’s online gaming market lacks the competiveness available in the black market and said the illegal market could be as big as 70% within the casino vertical due to a lack of slots and high jackpots.
The black market is also estimated to represent around 25% of total online poker revenues as poor liquidity continues to be a factor, prompting the country’s regulator to look into the possibility of global poker networks.
“Unless the regulator approves slots, exchange betting, reduces game tax and increases poker liquidity, allows operators to deduct VAT and allows players to deduct losses and declare net win for income tax purposes, we won’t see much progress of the online regulated market size, and will continue to have a significant illegal market on the side,” Hermo said.
Last week, Betsson CEO Magnus Silfverberd told eGaming Review that the 25% rate of GGR tax in Spain was “too high” and preventing his company from entering the Spanish market.
In other news:
– Increased marketing spend hits Gala Coral’s online profits