Online Gambling Revenue Surges in Spain, Fueled by Eased Restrictions

Spain’s online gambling market is experiencing a significant resurgence, driven by a relaxation of advertising restrictions and evolving consumer preferences. Recent data reveals substantial growth in both revenue and advertising investment within the sector.

Impressive Revenue Growth

The latest figures from the Dirección General de Ordenación del Juego (DGOJ), Spain’s gambling regulator, paint a picture of robust expansion. Gross Gaming Revenue (GGR) reached €409.33 million in the fourth quarter of 2024, marking a 17.57% increase compared to the previous quarter and a remarkable 29.82% jump year-on-year.

This growth is spread across various segments, with online casinos leading the way, accounting for nearly half of the total revenue at €203.16 million. Sports betting followed closely, generating €177.12 million, while poker contributed €25.55 million.

Advertising Spending Rebounds

The surge in business volume has been accompanied by a significant rebound in advertising spending. The DGOJ report confirms that marketing expenditure in Q4 2024 totaled €162.34 million, representing a 23.65% increase compared to the previous quarter and a substantial 42.49% year-on-year rise.

This spending is allocated across various channels:

• Advertising: €66.85 million, up 32.65% quarter-on-quarter.
• Promotions: €77.47 million, divided between bonuses redeemed in prizes (€23.64 million) and those not redeemed in prizes (€53.83 million).
• Affiliate Marketing: €16 million, a 21.56% increase from the previous quarter.
• Sponsorships: €2.02 million, showing a notable 60.72% growth.

The Impact of Legal Changes

This positive trend marks a turning point after years of stringent regulations imposed by Royal Decree 958/2020, often referred to as the ‘Ley Garzón.’ This law, enacted in November 2020, prohibited gambling advertising during sports broadcasts and in media outlets, while also severely restricting promotional bonuses and sports sponsorships.

“The Supreme Court’s decision allowed operators to recover some of their promotional activity, which translated into an immediate increase in advertising investment.”

According to experts, these measures led to a decline of approximately 34% in advertising investment and up to 85% in sponsorships in subsequent years. However, the landscape began to shift in April 2024 when the Supreme Court partially upheld an appeal filed by the Spanish Digital Gaming Association, questioning the constitutionality of some of the decree’s blanket prohibitions.

The Supreme Court’s ruling allowed operators to regain some of their promotional activities, resulting in an immediate boost in advertising investment. In June 2024 alone, advertising investment in the sector grew by 52% compared to the same month the previous year.

New Sponsorships Emerge

The judicial decision has had visible effects beyond financial data. Sports clubs and operators have begun to reactivate partnerships and sign new agreements. Internationally, a notable example is Bet365 becoming an official global sponsor of the UEFA Champions League for the 2024-2027 commercial cycle. Domestically, Atlético de Madrid announced a sponsorship agreement with Yaass Casino in October 2024.

Changing Player Habits

Underlying the overall growth of online gambling in Spain are shifts in user behavior. The online casino segment, for instance, has experienced an annual increase of 18.62%, largely driven by the popularity of slot machines and live roulette, which grew by 29.35% and 5.38%, respectively.

Sports betting has seen even more pronounced growth, expanding by 54.39% compared to the same quarter last year. Conventional bets led this growth with a 75.70% increase, while live bets rose by 4.68%, according to the DGOJ report.

In contrast, other types of bets, such as horse racing or exchange betting, showed moderate declines, suggesting a shift in player preferences towards more immediate and visually interactive products.