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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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