New Online Gambling Licenses Planned for Spain

Change is ahead for the Spanish online gambling industry, with the country’s regulator due to issue licenses to a new wave of applicants. This strategy is part of an initiative to encourage growth in the country’s online gambling market, which will also benefit the wider economy. The Directorate General for the Regulation of Gambling (DGOJ) announced that the licenses would be for operators who plan to focus on casino games and online slots.

Revitalising a Struggling Economy

Spain has so far been reluctant to open a new licensing window, but speculation suggests that the county’s struggling economy has played a role. To a lesser extent, a decline in the fortunes of online poker operators has also played in a role in attempting to revitalise the struggling industry. Many global operators are expected to seize this opportunity to submit licensing requests. Existing Spanish operators are also permitted to apply in the new round of licensing.

Recent Performance

This latest action from the DGOJ has come at a critical juncture for the Spanish market. Figures direct from the DGOJ have shown that gross gaming revenue declined by 6% between the second quarter of 2013 and 2014. Looking at poker performance, there was €15.39 generated in quarter two of 2014. Overall, cash game revenue decreased by 8.4 per cent between the second quarter of 2013 and 2014, further highlighting the industry’s struggles.

Industry Expectations

Gaming consultant Eduardo Morales-Hermo has informed eGaming Reviews that he believes that 10 to 12 new applicants will likely enter the industry. Fresh operators will be welcomed by the DGOJ, who discovered in a collaborative report by the CODERE Foundation that 12.8% of Spanish online poker players are doing so at sites not licensed with the DGOJ. The aim is not only to increase taxation revenue, but also to cut down on revenue lost to unlicensed gaming operators.