Sports
Spanish Gaming GGR Surges as Betting Margins Recover in Q3
The Spanish gambling industry is on the rise. The most recent trend indicates a rebound in the third quarter of 2022, following a quarter-on-quarter stagnation in Gross Gambling Revenue (GGR) of less than 2.5% of turnover. According to a report by the Directorate General for the Regulation of Gambling (DGOJ), the industry experienced a significant upturn in the third quarter of 2022, bringing the GGR to a whopping €240.8 million. In this article, we will look at the events that led to the upturn and what the future holds for the Spanish gambling industry.
A Quick Overview of Spanish Gambling
The Spanish gambling industry is regarded as successful in terms of revenue generation and problem gambling prevention. The industry is governed by the Directorate General for the Regulation of Gambling, which issues licenses to operators.
The country legalized online gambling in 2011, and its regulations have since been revised to discourage risky gambling behavior. Over 50 licensed online gambling operators offer various games ranging from Spanish sports betting to poker to bingo. Land-based casinos are also prevalent and serve as tourist attractions. With close to $10 billion in annual revenues, the national lottery, Loterias y Apuestas del Estado, significantly contributes to the sector. 20% of the GGR gaming tax is contributed by just sports betting and online casinos.
Increasing Profits Despite All Odds
Despite increased regulations, gambling revenues in Spain have also increased. The gambling regulator, DGOJ, reported a 14.8% decrease in GGR in the first quarter of 2022, bringing it to €204.4 million (US$215.17 million) in comparison to the first quarter of 2021. This was, however, a 16.25% increase over the previous quarter.
In the third quarter of 2022, they reported an 18.1% increase quarter-on-quarter and a 31.3% increase from the same quarter in the previous year. The increase was primarily attributed to sports betting, which increased 46.2% from Q2 and 103.6% year-on-year. Betting margins increased from 2.2% in the previous quarter to 4.1% in the current quarter. Marketing expenditure is also on the rise despite tightening restrictions as sponsorship deals take an upturn of 373.7% quarter-on-quarter.
More Stringent Rules are being Implemented
Following the upward trend, the Spanish ministerial council approved over 30 new responsible gaming measures in its Royal Decree of Commercial Communication. The new measures, which went into effect on March 14, 2023, aim to identify risky consumer spending behavior among youth aged 18 to 25.
Users who incur a net loss of €600, or €200 for those under the age of 25, in a three-week period are classified as intensive gamblers under the new rules. Gaming operators are not permitted to send promotional messages to high-risk individuals or to include them in VIP programs. If harmful behavior is detected, gaming operators must notify risk gamblers and provide a monthly summary of their gambling activities. They are also prohibited from advertising to people between the ages of 18 and 25 prior to their willful interaction with the business.
How is the Industry Reacting to Tightening Regulations?
The Asociación de Medios e Información (AMI) and Jdigital have both petitioned the Supreme Court to overturn the restrictions that are crippling the gambling industry. JDigital, the Spanish online operator association, has criticized the developments in the 2023 Royal Decree, claiming that the move was unnecessary given that the industry is experiencing fewer cases of problem gambling. They also emphasized that the country already has some of the strictest regulations in Europe.
JDigital is urging officials to focus more on capitalizing on existing opportunities to improve the gambling market and encourage investment in the country. JDigital promotes safe gambling through initiatives such as the VII Edition of the Jdigital Awards, which saw various players awarded titles such as Best Marketing Campaign, Best Service Provider, Best Technology Provider, and Best Responsible Gaming Initiative.
The Spanish Gambling Industry’s Potential
In 2021, Spain’s population was estimated to be 47.42 million people and internet penetration was 94%, according to the World Bank. This presents a broad reach for the gambling industry and the potential for increased revenue with reasonable regulations in place. However, certain measures are hindering growth, such as taxing player winnings as taxable income and levying a 10% tax on the Gross Gaming Revenue (GGR) of operators who become tax residents in Ceuta and Melilla. Nevertheless, with organizations such as AMI and JDigital advocating for reasonable regulations, the Spanish gambling industry is likely to reach a positive arrangement with authorities and further bolster revenue generation.
Final Thoughts
The Spanish gambling industry is showing promising signs of growth and recovery despite the challenges posed by the Royal Decree of Commercial Communication. With the support of organizations such as JDigital, the gambling sector is likely to further capitalize on the potential of its vast consumer base, potentially leading to higher GGR.
Sports
FIFA Picks Saudi Arabia to Host 2034 World Cup
By Adedapo Adesanya
Saudi Arabia has been confirmed as the host nation for the 2034 FIFA World Cup.
Also confirmed were the hosts for the 2030 World Cup, which was awarded to six countries and will take place across three continents to celebrate 100 years of the tournament.
Saudi Arabia was the sole bidder for the 2034 competition. Its host status was confirmed on Wednesday after an online meeting of the 211 members of the International Federation of Association Football (FIFA).
The members confirmed the unchallenged bids by acclamation – simply clapping during the virtual meeting led by FIFA president, Mr Gianni Infantino.
As well as the World Cup, Saudi Arabia is hosting football’s 2027 Asian Cup, the 2029 Asian Winter Games and the 2034 Asian Games. It also has long-term ambitions to host more major events, including the Women’s World Cup.
The 2030 tournament will be led by co-hosts Spain and Portugal in Europe, and Morocco in North Africa. Uruguay, Paraguay and Argentina will each hold an opening match to mark 100 years since the first World Cup took place in Uruguay in 1930, a tournament that the South American nation won.
The next World Cup in 2026 will be co-hosted by three proximal nations in North America— the US, Canada, and Mexico.
Saudi Arabia first published its bid for the World Cup back in August 2024 after FIFA controversially fast-tracked the process for hosting the tournaments in 2030 and 2034.
The bid for the 2034 tournament has led to criticism from activist groups, who argue that Saudi laws will not protect workers overseas.
Some of the issues echoed that of the 2022 tournament held in Qatar.
The tournament will require the construction of eight new stadiums, for a total of 15 hosting venues, plus the addition of 175,000 hotel rooms, which will rely heavily on migrant labour.
Critics of FIFA also insist a Saudi-based World Cup risks a repeat of the rights abuses seen during a decade of similar preparations for the 2022 World Cup in Qatar.
FIFA previously praised the Saudi bid in an in-house evaluation, noting that the 48-team, 104-game tournament offers “significant opportunities for positive human rights impact”.
However, it added that Saudi Arabia must invest “significant effort and time” to comply with international standards.
Sports
Brila FM Suspends Operations in Port Harcourt, Abuja Over N200m Fraud
By Aduragbemi Omiyale
Leading sports radio station in Nigeria, Brila FM, owned by a veteran sports journalist, Mr Larry Izamoje, has suspended its operations in Abuja and Port Harcourt in Rivers State.
The broadcast stations in these two prominent cities of the country are currently not on air as a result of the directive of Mr Izamoje.
He took the action after uncovering fraudulent activities by employees of the company.
It was alleged that Brila FM’s Head of the Port Harcourt branch, Mr Sam Victor Mpong Akakan, has not been remitting funds to the company’s account.
In a statement made available to Business Post, it was stated that Mr Akakan has been arrested by the police in connection with the issue alongside the organisation’s former Chief Accountant, Mr Ekerete Sunday.
Mr Akakan was accused of opening a company, Bricast Communications, only two months after Brila FM Port Harcourt began operations with him as the Head of Station.
It was claimed that he took the first three letters of Brila and the word ‘CAST’ from ‘BroadCASTing’ to register his business name, which he allegedly used to issue invoices meant for Brila FM.
It was said that in connivance with others, Mr Akakan issued several Bricast Communications invoices with Bricast account details to several Brila FM clients instead of the company’s invoice bearing Brila Broadcasting Services Ltd for the diversion of payments for adverts and sponsored programmes aired on Brila FM stations in Abuja and Port Harcourt particularly.
He is also being investigated for forging certificates of broadcasts of Brila FM, tendering the same to clients using his Bricast invoices and getting payments into his Bricast account from such activities.
Mr Akakan was said to have presented himself on several occasions to unsuspecting clients including churches as Brila FM’s marketer and once convinced to do business on Brila FM gave them Bricast invoices for payments to his company (Bricast) repeatedly.
It was claimed that a fraud case involving over N200 million led to the temporary suspension of the Abuja and Port Harcourt branches.
Sports
Analysis Reveals Wilfried Zaha as Africa’s Most Handsome Athlete for 2024
By Dipo Olowookere
An analysis has shown that an Ivorian footballer, Wilfried Zaha, is the most handsome African sportsperson in 2024.
Zaha, who opted to play for Cote d’Ivoire after the Three Lions of England snubbed by him, currently plies his trade in Turkey for Galatasaray.
He moved to Turkey from England, where he played for Crystal Palace, and was one of the stars of the football outfit.
In research conducted by Bettors, Zaha topped the list as the most attractive African male athlete of 2024, closely followed by Odion Ighalo, a former Nigerian striker, and Akani Simbine, a South African sprinter.
The Most Handsome African Athletes of 2024 rankings used the golden ratio as a benchmark for facial attractiveness.
This study carefully analysed high-quality images of athletes from various sports, offering a fresh perspective on their aesthetic appeal.
The methodology involved selecting three high-quality images per athlete, sourced from official sports archives, media outlets, and verified athlete profiles, ensuring accuracy and clarity, according to the results of the research made available to Business Post.
Fourth on the list is Alex Iwobi of Nigeria, who plays for Fulham FC in England, and a Tanzanian footballer with Greece’s PAOK, Ally Samatta, is the fifth Most Handsome Athlete in Africa.
Ghana and Arsenal’s midfielder, Thomas Partey, is sixth, Senegalese Kalidou Koulibaly is seventh, Pierre-Emerick Aubameyang of Garbon is eight, Ivorian Cheick Sallah-Cisse is ninth and Senegalese Reug Reug is number 10 on the list.
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