In the three months leading up to June 30, Spain's igaming sector reported a total gross revenue of €208.9 million (£189.2 million/$245.2 million). This figure marked a 4.2% decrease compared to the first quarter of the same year, accompanied by a notable decline in advertising expenditures by licensed operators.
The quarter was particularly challenging for sports betting, primarily due to the suspension of sporting events, including domestic football leagues, amid the Covid-19 pandemic. Revenues for sports betting plummeted to €68.1 million, reflecting a year-on-year drop of 20.8% and a staggering 38.4% decline from Q1.
Data from the Dirección General del Ordenación del Juego (DGOJ) revealed substantial decreases in staking activities. Pre-match, fixed-odds staking fell by 49.0% to €288.9 million, while in-play wagers decreased by 39.6% to €698.6 million. Overall, total stakes across various products and bet types dropped by 40.4%, reaching €1.05 billion.
In contrast, online casino operations performed well, partially compensating for the downturn in sports betting. Revenue from online casinos rose to €93.5 million, an increase of 36.5% compared to the previous year, with customer stakes climbing 25.3% to €2.86 billion.
The growth in online casino revenue can be largely attributed to slot games, which generated €51.9 million in gross gaming revenue, marking a 30.4% increase year-on-year and a 19.9% rise quarter-on-quarter. Live roulette also showed impressive growth, with revenue reaching €27.0 million, up 75.7% compared to Q2 of 2019.
Poker saw remarkable growth as well, with revenues almost doubling to €38.2 million, a 97.4% increase. Bingo performed strongly too, with its revenue contribution jumping 66.9% to €5.0 million. Real-money contests experienced an extraordinary surge, with revenue soaring over 700% to €3.9 million.
Despite the overall revenue growth in some sectors, the quarter saw a decline in both monthly average active customer numbers and new account registrations. The average number of active players for the period was 642,938, down 25.4% from 2019. Monthly new sign-ups averaged 137,930 in Q2, a decrease of 41.0%.
During the Covid-19 lockdown, strict regulations were enforced on igaming licensees, leading to a significant reduction in marketing expenditures. Total marketing spend across all channels was €40.6 million, reflecting a 50.6% year-on-year drop and a 65.7% decrease from Q1.
The most substantial reductions were noted in advertising, which was restricted to broadcast times between 1 AM and 5 AM under new rules. As a result, spending in this area fell by 57.6% to €17.2 million. Bonus offers also declined sharply, as cash bonuses were banned from late March until early June, leading to a 57.3% decrease in bonuses handed out, totaling €12.5 million. Meanwhile, affiliate marketing spending decreased by 23.4% to €6.7 million during the quarter.
The only area to see growth year-on-year was sponsorship, which was up 16.2% to €4.3 million. However, this positive trend may soon be curtailed as the Spanish government has indicated plans to implement a comprehensive set of restrictions on gambling advertising. These included legalizing the 1 AM to 5 AM advertising window, banning all sports sponsorship, and prohibiting cash bonuses.
