In 2023, the total revenue of the Spanish gambling industry has exceeded 10 billion euros.
In recent years, with the popularity of online gambling platforms, the Spanish gambling market has accelerated its development. This growth is not only due to technological advancements but also due to changes in online gambling consumer habits.
Due to the long history of the Spanish gambling industry, Spain has a complete set of gambling regulations and tax laws, which help gambling companies to develop more sustainably and prosperously in this gambling hotspot.
Today, when talking about the European gambling market, Spain is an indispensable part.
With the recent improvement of gambling advertising laws in Spain, the development of Spanish online gambling has entered the fast lane.
Moreover, there are still undiscovered potential niche markets waiting for operators to fully explore.
History of Gambling in Spain
The history of gambling in Spain can be traced back to ancient Roman times, even earlier than the gambling powerhouse Philippines, after all, it was Spain that brought horse racing, lotteries, and other gambling activities to the Philippines during its colonization.
The Spanish government officially legalized gambling in 1977;
Before this, due to Franco's feudal dictatorship, most gambling activities were prohibited, allowing only national lotteries, raffles, sports lotteries, and some niche bets.
After Franco's death in 1975, gambling was legalized, including bingo games, casinos, and "prize entertainment betting machines," i.e., "slot machines."
It was not until 2006 that Spain formally brought the gambling industry under the supervision of local governments.
In May 2011, Spain officially enacted the "Spanish Gambling Law," marking a significant change in the country's gambling landscape.
The main purpose of this law is to coordinate the regulation of Spanish online gambling, as the scope of online gambling regulation exceeds the boundaries of local government supervision.
According to Spanish law, national and local authorities are responsible for regulating the country's gambling market.
Activities conducted in two or more regions are controlled by the state government. However, if a gambling activity is conducted only in a specific region of a country, it is controlled and managed by the respective regional government.
This essentially means that nationwide gambling activities need to be monitored and controlled by state authorities. These activities are usually based online, i.e., online gambling.
But before the law was enacted, local authorities mainly focused on regulating traditional physical gambling activities. However, with the development of online gambling, it is not only unregulated by state authorities but also by local authorities.
Moreover, Spain has a special authority with the power to supervise, control, and manage the country's gambling activities, the Gambling Activities Regulatory Authority, which is under the jurisdiction of the Ministry of Finance. It was this department that initiated the drafting of the "Gambling Law."
The "Gambling Law" enacted on May 26, 2011, has been in use ever since, considered a key act for the market, and has established the main rules for gambling-related activities at the national level.
Overall, Spain's gambling law is considered more lenient than many other European countries' gambling laws.
Spain's Online Gambling Development Enters the Fast Lane
With the introduction of the "Spanish Gambling Law" in 2011, the landscape of the country's gambling industry finally changed, and the law established a framework for licensing Spanish online gambling operators.
A few months later, in June 2012, Law 13/2011 on gambling took effect.
Since the implementation of this law, more than 70 gambling operators have been licensed, and by 2022, more than one million players had started betting in the Spanish online gambling market, reaching 2.9 million active accounts and 1.5 million active players to date.
The data prove that the Spanish online gambling industry has shown particular prosperity under a complete legal framework.
In 2023, the latest figures released by the Spanish Gambling Regulatory Authority (DGOJ) show that the total revenue (GGR) from online gambling in 2023 was 1.24 billion euros (1.06 billion pounds/1.35 billion US dollars), an increase of more than a quarter, reaching 28.4%.
This rapid growth has also had a significant impact on Spain's finances.
In 2023, the gambling industry contributed approximately 1.5 billion euros in fiscal revenue through specific taxes, licensing fees, and other taxes. In addition to tax contributions, the gaming industry also created about 85,000 direct jobs.
In terms of indirect employment, it is estimated that about 250,000 jobs are involved in technology, marketing, advertising, tourism, hospitality, legal and financial services, logistics, transportation, general services, and maintenance.
We mentioned above the Gambling Activities Regulatory Authority under the jurisdiction of the Ministry of Finance, which is the main driver behind the perfection of online gambling laws, and now it has finally reaped the fruits.
The growth of online gambling has also driven the development of other related industries, such as technology, advertising, and media.
These data confirm that the gambling industry in Spain has become an important industry, providing substantial income to the country through taxes and fiscal contributions, while providing many citizens with stable and high-paying job opportunities.
Relaxation of Advertising Laws, Industry Welcomes Another Catalyst
On April 10, 2024, the Spanish Supreme Court partially upheld the appeal of the Spanish Digital Gaming Association (Jdigital) against Royal Decree 958/2020, abolishing the ban on celebrity advertising and restrictions on video sharing platforms.
The original "Advertising Royal Decree" took effect in 2021. It prohibited gambling company sponsorships, allowing gambling ads to be broadcast on radio and television only between 1 a.m. and 5 a.m.
Under the digital internet wave, the higher and wider usage of smartphones also increases the attractiveness of online games, and creative gambling game designs, enticing bonuses, and VIP programs deeply attract gambling users.
With the lifting of these marketing restrictions, the user base of Spanish online gambling will definitely expand more rapidly.
In Spain's well-regulated gambling regulatory system, a free and prosperous Spanish gambling pattern is forming. The Spanish (online gambling) iGaming market is estimated to soon become one of the largest markets in Europe.
Spanish Market Still Conceals Huge Opportunities
The 2022 annual report of the Spanish Gambling Business Council CeJuego shows that 83.9% of the Spanish population aged 18-75 participated in gambling. This percentage represents that only 5.6 million out of 40 million people do not participate in gambling, including infants and the elderly.
In the Spanish gambling market, sports betting continues to be highly popular, as everyone is a master of sports betting.
Sports betting is mainstream in Spain, after all, Spain is home to some of the world's best football teams, including the famous Real Madrid and Barcelona.
However, the development of esports in Spain should not be overlooked, as it is one of the most important stages for world esports. The 2024 Valorant Madrid Masters attracted over a million players to participate in the local viewing;
But it is worth noting that Spain's esports betting has not kept up with the development of esports.
Although esports betting is also legal under Spain's gambling laws, we have yet to see operators attract esports bettors through investment in product development and marketing.
In most cases, esports is still considered a part of the platform's long tail, or a broader part of sports betting, and has not received enough attention.
In a potential market like Spain, this is an untapped future player base.
Therefore, as operators, we should quickly discover this hidden market and fully participate in Spain's vibrant esports industry.
It should be noted that esports is not a field where large sports betting companies can use Managed Trading Services (MTS) to solve everything once and for all.
Esports betting users expect a more intimate experience and will reward operators who provide this experience.
Operators also need to focus on targeted marketing, which is not just about sticking logos on live broadcasts or jerseys and then calling it a day—collaborating with streamers and esports teams, creating interesting content, and hosting viewing parties for major tournaments are essential.
For the majority of young millennial and Generation Z audiences that make up esports, only by creating interesting experiences, which are not necessarily about selling your product, can you cultivate connections with the young community.
For operators, the opportunity is right in front of them. Considering that this market has not been fully utilized, early movers will have an advantage, and if you can build your brand into an esports betting paradise, they will stay because they value your brand, not just the bonuses and promotions you offer.
Conclusion
Overall, Spain has a long history of gambling and well-regulated market laws.
Therefore, the market is developing rapidly, with a large base of gambling users, and the market potential is huge. In the future, the Spanish gambling market is expected to maintain a stable growth trend.
The prospects for the Spanish gambling market are promising, but there are also some challenges for gambling operators, such as possibly more competitors than other target markets.
After years of marketing and promotion in the Spanish gambling market, the cost of promotional channels will be high. Therefore, how to find a unique promotional marketing method on social media is also a key consideration for gambling platforms.
While sports betting is mainstream, the competition is also large, whereas esports betting is an untapped treasure trove, which is very worth focusing on by operators.
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