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JDIGITAL ANALYSES SPANISH MARKET

Sunday March 03,2013 : JDIGITAL ANALYSES SPANISH MARKET
 
Stringent tax and other conditions make profitability a challenge
 
The Spanish operator association of digital gaming, JDIGITAL's annual report, analysing the market along with the operation of licenced digital gaming companies carries some interesting nuggets relating to the Spanish market.
 
According to the association:
 
-   Estimates that the online gambling industry spent 38 percent more, around Euro 125 million, on advertising following the regulation of the sector.
 
-   Growth generated by the sector after regulation, as stated by the DGOJ, has experienced a monthly increase of 10 percent.
 
-   Estimates that operator revenues in 2013 will reach Euro 225 million in terms of gross gaming revenue, based only on the current gambling forms of sportsbetting, poker, casino and bingo.
 
The association said it interprets the increase in ad spend as a positive development that creates value and benefits the economic activity of other business sectors, but operator costs concerning communication and advertising, combined with high taxes, means that online gambling operators are not yet able to achieve acceptable performance limits to keep a viable business in the country.
 
In summary of current licence holders in the online gambling market in Spain:
 
-   Of the total 53 companies licensed in June 2012, 44 companies are currently active, representing 83 percent of the total.
 
-   Noted that two companies Trade4win SA and Paddy Power Europe PLC relinquished their licences.
 
-   44 operators hold full licences, while 42 hold unique licences for different types of play.  30 operators offer poker, 21 bingo, 30 casino games and 20 betting.
 
-   Of the 44 companies currently operating online, only 3 have Apps for play via mobile or tablet (Reel Spain/PokerStars, Betfair and Spread Your Wings Spain/Sportingbet), with the expectation that during 2013 remaining operators will expand this service, given its importance and the strengthening of this channel in Spain.
 
-   Licenced online gambling operators are mostly foreign companies already operating in Spain prior to the regulation of gambling. 40 percent of licenced operators are Spanish.
 
In related news, following a meeting held between AVIFJO (Association of Victims of Fraud in Online Game), AUJO (Users Association Online Game), Poker Strategy, EducaPoker, Sphera Pokerviú and Sports,  Enrique Alejo of the DGOJ said Poker Player International liquidity between Spain and Italy was certainly a possibility if not a likelihood by the end of 2013.

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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