Spanish Gambling on the Rise
The Spanish gambling industry is rapidly growing and hitting multi-million dollars in revenue each year. According to the Spanish edition of The Local, the gross annual revenue of the industry has already reached $678 million in 2017. If same growth continues then, a 9-figure revenue could be achieved with ease in the upcoming years.
The numbers speak for themselves. The annual report of the Directorate General for the Regulation of Gambling (DGOJ) states that the gambling industry earned $514 million in 2016, showing a 31.9 percent growth in revenue year-on-year. In 2015-16, the growth in revenue was only 22.9 percent.
The quarterly results are equally good. In Q4 of 2017, online gambling and sports betting raised $203 million in revenue, gaining 23.5 percent over Q3. Sports betting contributed about $121 million of the fourth quarter figure, showing galloping Spanish interest in this sector. In casino products, live roulette make up for 34.4 percent of revenue, but slot machines brought 52 percent of the revenue. Slots are the most lucrative casino games, but roulettes have the highest spending rates.
The sector which has grown quickly in the gambling economy is online casinos. There are several reasons why the industry is suddenly experiencing a rise in momentum. Experts mostly attribute the renewed gambling interest to recent changes in tax policy as well as the country’s adoption of gambling as a legit industry. Although these changes have arrived late, Spain is warming up to the potential of the industry and welcoming it as well.
Tax cuts in Spain could help reduce gambling product levies by up to 5 percent as rates go down from 25 percent to 20 percent. The big decision announced in April this year could help Spain open up to the bigger European gambling industry and bring more licensed operators to the local market. It could boost the state’s revenues. One should note that a tax cut is not designed to help the gambling industry flourish. It is the opposite- the rise in online casinos and player interest has led to the slash in rate.
Experts from Ficon Leisure, an investment and advisory company, are predicting that the industry will expand rapidly and bring in $1.22 billion to $1.84 billion in revenue in the next 3 to 5 years. They suggest that the market is far from saturated and there is still scope for the entry of new players in the market. Tax cuts and easy regulation can make Spain a lucrative operation destination for other European players. Spanish gambling operators will also move to horse betting.