Posted on: November 10, 2022, 06:51h.
Last updated on: November 10, 2022, 06:51h.
Spain has seen a lull in gambling activity this year compared to 2021, but it’s not going to stick around. The country’s government has put together its budget for 2023, and gambling revenue is going to play a significant role in supporting its operations.
Spaniards will spend more money on gambling-related activities, including sports betting, throughout the year 2023. Figures included in the General State Budgets (PGE, for its Spanish acronym) project €9.22 billion (US$9.23 billion) in net proceeds.
That figure is just from the turnover of the State Lotteries and State Betting Society (Selae, for its Spanish acronym), the public operator of lotteries and games of chance that belongs to the Ministry of Treasury. It doesn’t include revenue the government receives from other gaming verticals.
10-Year High
If confirmed, revenues would exceed the figures prior to the outbreak of the COVID-19 pandemic by a slight margin. In addition, gaming hasn’t played such a significant role in the budget in a decade. In 2013, it contributed €11.6 billion (US$11.6 billion).
If the figure holds, the profits of Selae would report after discounting taxes and operating expenses, personnel and other items, would be around €1.854 billion (US$1.85 billion). That, too, would break the ceiling it recorded during the pandemic.
Gambling is the main component of the aggregate profit of commercial companies and non-financial public business entities as a whole in Spain, with almost 80% of the weight. Previous studies have shown that the online gaming sector heads all eCommerce activity in the country.
Gambling operators will record a net result of €2.33 billion (US$2.33 billion) next year, according to projections. This is 55% more than the €1.49 billion (US$1.49 billion) budgeted for in 2022.
The government will get help from other areas, too. Selae could account for €1.85 billion (US$1.85 billion), or 79.5% of the total. However, state-owned air, port authority, rail operations and others will add around €1.11 billion (US$1.11 billion) combined.
Ramping Up With The Holidays
Selae hopes that it can get the increase started this year. Today, it is launching its marketing campaign for the Christmas Lottery, one of the most popular lotteries throughout the entire year.
It’s a major activity that, for many Spaniards, commands the same level of excitement as watching the ball drop in New York on New Year’s Eve. This isn’t surprising – this year’s draw on December 22 will award €2.52 billion (US$2.52 billion) in cash.
Last year, sales for the Christmas Lottery exceeded €3.1 billion (US$3.1 billion), setting a new record. The draw is the most significant for Selae, representing more than 30% of the annual total collected from public gaming. In addition, it represents half of the national lottery sales for the whole year of lottery players, according to the operator.
On average, each Spaniard spends around €66 (US$66) on the Christmas lottery. By autonomous communities, according to Selae, Madrid sells the most tickets, at €528 million (US$528 million). Next is Andalusia, at €448 million (US$448 million), followed by Catalonia (€412 million or US$412 million) and Valencia, at €379 million (US$379 million).
