Online gambling operators are striving to increase their revenues. A new projection says the market will reach $1.22 billion by 2023. In just five years the market will be among one of the highest earners for Spain. The report came from Ficom Leisure. Spain has not been very high on the analyst’s minds because it is a fairly new market allowing online gambling. But, not anymore. Spain has now become the focus of international market analysts with the billion euro prediction. It is likely Spain will see $1.84 billion as industry revenues over the next three to five years.
Spain is cutting taxes for online gambling operators, which may be one reason why they will soon see over a billion in revenue.
Another reason for the boom in online gambling may be linked to sports betting operators.
Ficom spent its time assessing sports and casino gross revenues for gaming. They looked at the 2017 figures to find income went to $687 million. Ficom’s senior partner told media that Spain has plenty of room for industry growth. Optima CEO Jacob Lopez Curciel, the sports betting and gaming company, said the senior partner is correct. When one looks the Spanish market, it is not saturated like other European and Asian markets.
There is some concern with regards to regulations. Spain has decided to adopt new regulations that could make it more difficult for betting operators.
Contradictions for Taxes
Spain’s Congress of Deputies is proposing tax cuts for fixed-odds betting in sports, fixed-odds horseracing and exchange betting. The current rate is 25% of the income made, and it is suggested it be lowered to 20%. The proposal is designed to bring in more operators and give current operators lower taxes to stay.
Yet, they would need to have a Spanish license. The law will also take time to become useful to operators. The talk of raising other rates can also affect the gambling operators to make it less appealing.
Given the contradiction of actions, one has to wait to see if the taxes will become lower or if new regulations will make it more difficult for companies to operate in Spain. Jdigital, the online gambling trade body said the online market should be consolidated, while it matures because he does not see how 12 new brands could make a successful go at it.
If consolidation occurs perhaps the revenues will hit above a billion, but it will take time.