Spain 2020: Turning the DGOJ’s challenges into opportunities  

The Spanish egaming market has been a rising star ever since it came online back in 2012, and I predict it’s going to be valuable online real estate in 2020.

While the market might still be in its development and growth phase, I expect to see the share of online gaming in Spain more than double from 7% to 15% with ease.

However, while operators may be eyeing up the market with great interest, plenty of naysayers have recently been jumping on the complaints bandwagon following the regulator’s latest announcements when it comes to advertising and technical standards, but I’m here to tell you that their gloomy outlook couldn’t be further from the truth.

For a start, as a Spanish gaming veteran, I’m delighted to see the DGOJ (the Spanish regulator) taking its responsibilities, such as player protection and underage gambling, very seriously. Alongside, any measure aimed at streamlining and optimising approval processes (especially for avoiding fraud and ensuring responsible gaming) should be applauded, as they’re in the best interests of the industry.

Of course, to an outsider, the market may look prohibitive with Spain’s latest government in power, but I assure you it’s not. As tradition dictates, the political situation in Spain is never easy; combined with the same overbearing media pressure that we’ve seen here, as well as Italy and the UK, and you’ve got a recipe for demonisation. However, like all challenges, there are also plenty of opportunities to capitalise on.

The protection of under 18s and responsible gaming are (and will continue to be) the main priorities for the DGOJ throughout 2020. Their unspoken mandate is to reassure the public that the Spanish egaming sector is properly regulated and fully compliant; and we’d do well to assist them in this endeavour.

At the end of the day, there’s always going to be an opportunity here. Getting that big win is part of our culture (just look at La Liga), and it’s not going to change. Spain offers fantastic potential for operators, and not only for the domestic market, but also the credentials it has as a gateway to the Latam region.

Given the Spanish passion for sport and gaming, and everything that comes with it, Spain certainly remains a lucrative market. However, these regulatory tailwinds will certainly necessitate operators and suppliers to rethink their strategies.

Thinking outside the box

We’ve seen plenty of emphasis on major operators channelling their budgets into TV and radio (along with sponsorships), but with that all set to change, it’s time to get inventive.

For any new operators looking to take advantage (of which I can assure you there are plenty), my recommendation is to redevelop more specialised and metric-based marketing plans. I suggest a measured approach, think much more where you invest your money, be much more strict with the monitoring of your metrics and in the analysis of your traffic sources, and above all, give much more value of the leads that you can get or have achieved in the different phases of a customer’s life.

The DGOJ has left plenty of doors open for operators to explore, and I expect to see the market return to many of the practices that were typical when the industry was still in its infancy. The key here will be to look for new business niches and make the most of every euro invested. Welcome bonuses may be on their way out, but there’s a solid case for diverting your resources into promoting customer loyalty once they’re acquired by new players.

Alongside, digital marketing is set to be another essential metric, and those who want to succeed here under the DGOJ’s latest regime would do well to look to affiliates and social networks, as well as considering content-rich messaging.

Not convinced? You should be. Regulatory restrictions aside, Spain’s current expansion is unprecedented; we’re seeing a 20% increase in terms of GGR, with most of the new customer acquisition coming from the players themselves recommending online gaming to their social circles, no advertising required.

Opportunities such as these are proof that no operator should lose heart. Yes, the DGOJ may seem heavy-handed, but they’ve got a job to do. Of course, these regulatory tailwinds will certainly necessitate operators and suppliers to rethink their strategies, but given our famous passion for sport and gaming, and everything that comes with it, there will always be opportunity here, I promise.

Rubén Loeches is chief marketing officer at R. Franco Group, the multinational Spanish gaming supplier and solutions provider. With over 10 years working in the gambling, betting and online gaming industries, he is skilled in operations management and marketing strategy.