1 2016 was the first quarter since Online Gaming and Betting started 1 June 2012, where the GGR income surpassed the €100m figure.
- Spanish Online Gaming & Betting Market grew +30% from 1Q 2015 to 1Q 2016
- Spain’s online gaming revenues grew by a third during the first quarter of 2016 thanks to another strong sportsbook and casino games performance, with the recent addition of slots to the casino vertical.
- Total gross gaming revenues in Q1 2016 were €102.3m, up 32% on the same period last year.
- Sportsbook remained the biggest grossing vertical, making up to 57% turnover of the total market with gross gaming revenues of €58.7m, up 29% year-on-year and 10% sequentially.
- Turnover in sportsbook grew by 33% to €1.330 million when compared to last year, of which 71% of stakes were placed in-play and resulted in 59% of total sportsbook gross gaming revenues.
- Casino revenues more than doubled (up 104%) to €25m, following the introduction of slots last summer, with the new games contributing €9.5m, or 38% of total casino revenues.
- Elsewhere, poker continued to contract as revenues fell 12% year-on-year to €14.8m while bingo increased 10% to €2.1m.
- Total deposits were up 40% to €271m for the period.
- Growth in the Spanish market comes with increased marketing expenditure from operators – total advertising spend in the country was up 46% to €32.7m year-on-year and 41% sequentially.
- Total turnover reached € 2.661,83 million, represents an increase of 9.56% compared with the 4Q 2015 and an increase of 33.46% compared the 1Q 2015
- Turnover growth with respect to 4Q 2015 was experience in all segments, with 15,43% in Casino, 12,28% in Betting and 16,85 in Bingo. The trend was not the same for poker games, with a downfall of -7,97% for Poker, and also down 26,97% in contests.
- Total GGR the 1Q 2016 was € 102.32 million, which represents an increase of 7.97% over the 4Q 2015 2015 and an increase of 32.15% on the 1Q 2015.
- GGR growth with respect to the 4Q 2015 was experienced in very low in Poker up 1.59%, but was significant in other verticals such as Casino up 10.62%, Betting up 9.79 and Bingo up 6,60%), while contests experienced a decreased of -21.52%.
- Total amount of withdrawals was € 171.54 million. The number of registered users increased by 8.90% on 4Q 2015, and 42.40% more than 1Q 2015.
- Advertising spending by operators during 1Q 2016, was € 32.71 million, representing an increase of 40.53%, on 4Q 2015 and an increase of 46.06% on 1Q 2015.
- Prizes amounted to € 2.559,51 million, representing an increase of 9.62% on 4Q 2015, and an increase of 33.51% on 1Q 2015.
- The number of registered users during the 1Q 2015, amounted to 581,240 users, representing an increase over the 4Q 2015 of 6.69% and up 25.79% over 1Q 2015.
All Betting Modes (Fixed odds – para mutual – exchange)
The betting vertical had a total turnover of €1.330,82 million for the 1Q 2016 which represents an increase of 30,04% compared with 1Q 2015.
In terms of GGR raised €58,65 million for the 1Q 2016 which is 29% more than the amount obtained in the 1Q 2015.
For the 1Q 2016 the split between live and pre-match betting was:
Turnover: 71,07% Live bets and 38,93 pre-match bets
GGR: 58% obtained in Live bets and 41,07% on pre-match bets
The average gross margin across all betting modes was: 4,5%
All Casino Games
The Casino games verticals had a total turnover of €899,31 million for the 1Q 2016, which represents an increase of 89,89% compared with the 1Q 2015.
In terms of GGR raised €25,04 million for the 1Q 2016 which is 104,12% more that the amount obtained in the 1Q 2015.
The breakdown or split share by Casino games vertical for the 1Q 2016 was:
Slot machines: Turnover €247,70 million (27,54%) – GGR €9,50 million (37,94%)
Blackjack: Turnover €179,21 million (19,37%) – GGR €4,02 million (16,07%)
Baccarat: Turnover €0,204 million (0,003%) – GGR €0,01 million (0,04%)
Roulette: Turnover €477,12 million (53,05%) – GGR €11,50 million (45,94%)
The split of the roulette game vertical between live and conventional was: Live roulette: Turnover: €234,19 million (49,08%) – GGR €5,60 million (48,70%) Conventional Roulette: Turnover: €242,93 (50,92%) – GGR €5,90 million (51,30)
The results are encouraging and show the impact of having a complete gaming offer after the implementation of the slots and exchange betting, which has brought more players and gaming volume from the offshore environment within the regulated market, something with affects favourably all verticals as one can see by the healthy increase in turnover and GGR.
Probably the gross margin is still un the lower levels, particularly what pertains to the betting verticals which are still in the 5% level. The average gross margin for the betting verticals for the 1Q 2016 was 4,6%, which is very low compared with the 7>8% margin experienced in the United Kingdom and circa 10% in Italy for the same betting vertical.
The margin for casino games is at the standard level of 2,75% across all verticals.
The overall margin considering all gaming verticals is at 3,5% for this 1Q 2016.
It is also noticeable the continue downfall of the poker games in turnover, even though seem to maintain the gross revenue level with just 1,59% compared to 4Q 2015.
Worth to highlight the live gaming and betting with almost 48,7% of the Roulette GGR revenues coming from live roulette and over 58% of Betting GGR revenues coming from Live Betting.
It is also noticeable the 46% increase in marketing and advertising investment with 40,53% more than 4Q 2015 and more 46,06% compared to 1Q 2015, which shows the efforts of the operators to keep their share or try to gain in a very competitive market, which is reflected in the healthy growth that the market is experiencing, especially with sports betting and casino roulette and slots verticals.
The mobile penetration is still a guess figure as there are not official data provided but the input from the main operators indicate that 50% +/- is already wagered thru mobile devices in the Spanish Online Gaming and Betting market. With a 15% increase in ARPU in 1Q 2016 vs 1Q 2015.