Online Gambling in Spain Sees Significant Growth, But Challenges Remain

Spain’s online gambling market is experiencing substantial growth, with figures continuing to climb. The Annual Report on Online Gambling, released in March, reveals a Gross Gaming Revenue (GGR) of €1,454.59 million, a 17.61% increase compared to 2023. Spaniards wagered €35,092 million gross during the year and withdrew €31,161 million in winnings, resulting in the aforementioned profit margin for the sector.

The industry boasts an average of 1.43 million active monthly accounts, indicating a growing and recurring audience on online entertainment and gaming platforms. However, the heavily regulated market, while offering fiscal benefits, also risks driving users to platforms based outside the control of the Spanish Directorate General for Gambling Regulation (DGOJ).

While the DGOJ’s concern is valid, it’s worth noting that even casinos without a Spanish license can offer popular games, various game types, responsible gambling tools, and secure payment methods. These casinos often hold recognized international licenses.

DGOJ’s Perspective on the Online Gambling Landscape

The concentration by vertical remains consistent with previous years, but it is becoming more pronounced. Casino games now account for 50.23% of the GGR, driven by live roulette and high-volatility slot machines.

Sports betting, boosted by summer championships and the first full season of the Kings League, generates 41.86% of the revenue. Poker (6.1%), bingo (1.5%), and interactive contests (0.3%) make up the remainder. Investment in marketing has also reached record levels.

Advertising expenditure totaled €203 million, and when including affiliates, bonuses, and sponsorships, the figure rises to €526 million, a 37% increase compared to 2023, following the judicial relaxation of parts of the Royal Decree on Commercial Communications. This growth is not a fleeting trend. In 2019, the GGR barely reached €748.24 million.

Since then, turnover has nearly doubled, with an average annual growth rate of approximately 14%. That year marked a turning point when betting no longer accounted for more than half of the market, giving way to an increasingly sophisticated and mobile-friendly online casino sector.

While Spain’s progress is significant, it contrasts with the broader European trend. A joint report by EGBA-H2 Gambling Capital estimates that online gambling will account for 39% of the sector’s total revenue in Europe in 2024, two points higher than in 2023 and well ahead of Spain’s 14.2%.

The European trade association predicts that digital participation will reach 41% in 2025, supported by the shift from desktop to mobile, which already accounts for 58% of transactions. Technological innovation and secure payment methods are also crucial for bolstering user confidence.

Jdigital: Strengths and Risks of an Expanding Sector

Data from the DGOJ and EGBA indicate that online gambling is in a phase of consolidation. However, a joint response with the regulator is needed to ensure a sustainable market in the long term, according to Jorge Hinojosa, Director General of Jdigital.

The 2024 data reveals impressive figures but also highlights pending tasks. Since the publication of Royal Decree 958/2020, which restricts advertising and bonuses, the industry has operated under a very strict regulatory framework. Nevertheless, the Supreme Court’s ruling on April 2, 2024, overturned several key articles.

This led to a rebound in promotional spending, with companies allocating 37% more year-on-year, returning to pre-pandemic levels. The specific reform of March 2023 (Royal Decree 176/2023) now requires the development of automated risk detection systems, an example of the convergence between advertising regulation and data protection.

Despite this momentum, Spain still lags behind its neighbors. Only 14.2% of total gambling expenditure comes from online channels, while thirteen European countries already exceed 50%. This contrast is amplified by the EGBA-H2 report, which places the continental digital share at 39% of revenue in 2024.

This is projected to reach 41% in 2025, with mobile devices increasingly dominating (58% of operations). A significant development is the draft bill on Artificial Intelligence, promoted by the Ministry of Digital Transformation and aligned with future European regulations, which will impose algorithmic audits and limits on commercial personalization that could affect the sector.

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