Once again, the stakes are lower according to the second quarterly report of the DGOJ
Sports betting is still falling and online casinos seem to be unable to reverse the negative trend despite their positive numbers. The second quarterly report of the DGOJ leaves interesting and, perhaps, worrying data for a sector that sees how for the second consecutive quarter online gambling in New Zealand decreases its gross revenues. Marketing expenses have also fallen.
According to the latest quarterly report presented by the DGOJ, sports betting continues with the negative trend while casino games maintain their contribution to gross revenues. ©Dieuvain Musaghi/Unsplash
With some gross revenues (GGR) close to 204 million euros , regulated online gambling suffers a decline for the second consecutive quarter. This is reflected in the second quarterly report published by the DGOJ .
Compared to 204.43 million euros generated in the previous quarter , the period from April to June leaves a decrease of 0.29%, that is, 203.95 million euros of gross revenues. Although this decrease has set off all the alarms, the truth is that it is a minimal decrease. The worrying thing is, in this regard, that it has been sports betting that has once again driven this negative trend , same as in the previous quarter.
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GGR (comparative)
- Q1 2022 : 204.43 Mill. $ → Q2 2022 : 203,95 Mill. $
- Q2 2021 : 215,96 Mill. $ → Q2 2022 : 203,95 Mill. $
Altogether, the first six months of 2021 left 456.04 million euros of gross income, while so far this year there have been 408.38 million in terms of income.
Main magnitudes
The casino games have performed well this quarter, very similar to the numbers presented in the previous period. Slots and live casino are still the games that are most bet on in Spanish online casinos . Conventional roulette decreases its quarterly rate while blackjack increases it by 0.18%. Overall, the casino segment has experienced a growth of 5.57% with a positive annual variation rate of 17.33%.
There is a decrease in poker compared to last quarter, although continues its positive year-on-year evolution . Bingo also decreases this quarter, however the annual evolution is also positive.
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Analysis of the GGR by segments:
| Segment | Gross income | Contribution to the GGR |
|---|---|---|
| Sportsbook | 60,90 Mill. $ | 29,86% |
| Bingo | 3.35 Mill. $ | 1,64% |
| Casino | 117.15 Mill. $ | 57,44% |
| Poker | 22.53 Mill. $ | 11,05% |
| Contest | 0.01 Mill. $ | 0,00% |
In this way, casino games leave an important contribution to gross income : 117.15 million euros compared to 110 million last quarter and 99.8 million in the same quarter last year. It has been sports betting that has driven gross income to the current negative trend.
What about online sports betting?
It is not explained very well, since the reopening of physical premises has not affected the online game. But the decrease in the contribution of bets to gross gaming revenues is noticeable .
- Sportsbook Q2 2022 : 60,90 Mill. $ → Q1 2022 : 65.16 Mill. $
- Sportsbook Q2 2022 : 60,90 Mill. $ → Q2 2021 : 91.96 Mill. $
The negative trend is already it had been observed since the second half of last year .
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Quarterly change in sports betting:
- Q1 2021: 110.03 Mill. $
- Q2 2021: 91.96 Mill. $
- Q3 2021: 59.16 Mill. $
- Q4 2021: 43.71 Mill. $
- Q1 2022: 65.16 Mill. $
- Q2 2022: 60.90 Mill. $
The table shows very clearly the pronounced decline during the third quarter of 2021 that worsened during the following quarter. In this sense, the figures presented this year represent a timid recovery .
What has happened in the middle of last year that has affected online betting in such a radical way? The answer is simple and very clear to all representatives of the sector. September 1 of last year meant the end of sports sponsorships . Bookmakers have ceased to be ubiquitous and this has resulted in a sharp decline in income from this concept.
On the other hand, as far as this quarter is concerned, the conventional bets, that is, the so-called counterpart sports betting increased by 15.21% , while live betting decreased by 23.09%. The DGOJ also highlights the strong increase in equestrian counterpart bets that rose 172.61%.
Secondary magnitudes
Other interesting magnitudes of the DGOJ report are those that have to do with player deposits and withdrawals, which increase their variation rates with respect to the previous quarter. The monthly average number of active gaming accounts is slightly lower than last quarter, standing at 996,149 accounts, although the annual variation is positive (0.30%). But new accounts are down: a quarterly decrease of 5.45% and annual of 25.99%.
The marketing expenses they also decreased: 4.76% compared to last quarter. From the breakdown of the magnitudes, it is very clear that advertising and sponsorship expenses are at historical lows, although expenses on affiliation and promotions are also decreasing, but less. Promotional expenses become 49.48% of the total marketing expenditure.
