Online slots and exchange betting were
initially approved by the Dirección General
de Ordenación del Juego (DGOJ) in April
following a consultation process that
spanned several months. Although it was
hoped that both products could go live
before the end of 2013, those hopes have
failed to materialise and operators are still
unable to launch these products into the
marketplace.
Analysts had expected casino's
percentage of total GGR to rise to around
30% with slot content, however Q3
figures show this has slipped to 16%. In
comparison, Italy saw casino revenues
almost double year-on-year since it
introduced online slots in December 2012.
“These games, especially casino slots,
are a key factor for online casinos to be
competitive and absorb a substantial
amount of grey or illegal gaming from the
dot.com environment,” Spanish gaming
consultant Eduardo Morales-Hermo says.
A major turn-off for operators has been
the country’s comparatively extortionate tax
rate of 25% of GGR. Betsson CEO Magnus
Silverberg recently dismissed speculation
suggesting that the Swedish operator was
mulling a move into the country, considering
the gross gaming tax rate to be too high to
make such a move possible.
WHAT HAPPENS NEXT?
Morales-Hermo argues that reducing the
tax rate to 10-15% of net gaming revenue
and resolving the VAT burden for operators
based in Spain could tempt more operators
into the country, warning that a lack of
movement could have the opposite effect
and existing operators could simply leave if
there are no signs of the tax rate lowering.
The biggest challenge for Spain in 2014,
however, with a high tax rate eating into
margins and reducing competitiveness, is
the black market. “The biggest challenge
for the Spanish market in 2014 is to
determine what the objectives are and
if they want to absorb the overall online
gaming demand within the regulated
environment,” says Morales-Hermo.
10
RMG COMES
FACE TO FACE
WITH SOCIAL
The lines between social and realmoney gaming started to blur, but
few winners emerged
WHAT HAPPENED?
Operators have long recognised the
benefits of incorporating social features
into their games – achievements and
missions, side-game-style promotions,
bonus games, better uses of leader
boards and buddy systems. Adam Krejcik,
managing director of digital and interactive
gaming at boutique research firm Eilers
Research, believes this is a trend which is
likely to continue in the future. “If it helps
retention, engagement, and monetisation
you can be assured that this trend will
continue,” he says.
Perhaps the biggest story came in
August 2013 when Irish operator Paddy
Power, launched its real-money Facebook
sports betting app, Paddy Power In Play.
The app allows users to log-in with their
existing Paddy Power account as well
as create a new account within the app
and offers a large range of sports betting
markets. Social elements feat