The online gambling and betting industry in Spain finds one of its references for statistics in the Annual Report published by the National Commission of Markets and Competition (CNMC). This report helps us understand the evolution of E-commerce revenue in general and how the gambling sector contributes to the overall figure that represents electronic commercial transactions in the country.

We have reviewed not only the 2022 Report but have gone back to 2016 to highlight the reality of the sector and how the gambling industry has evolved compared to many other sectors with higher revenues in this field, including travel, clothing, and subscriptions to audiovisual platforms.

The rise of E-commerce (breaking records year after year for a decade)

E-commerce has experienced exponential growth in Spain in recent years. According to data from the CNMC, E-commerce revenue in the country has broken records year after year, establishing itself as a sector of vital importance to the national economy.

In 2021, E-commerce in Spain reached a record figure of over 72 billion euros, representing a 25% increase compared to the previous year. This growth has been driven by various factors, such as increased consumer confidence in online shopping, the expansion of high-speed Internet connections, and the widespread availability of mobile devices, which are increasingly used for transactions.



The table above shows the data extracted from the CNMC reports on Spanish E-commerce revenue, demonstrating a clear progression from 24 billion euros in 2016 to 72 billion euros in 2022. Revenue has tripled in just 7 years. However, these annual reports also highlight other variables such as year-on-year variation, data by industry segment, the number of transactions, and geographical segmentation.

Next, we present the line that confirms the annual growth trend in terms of percentage, clearly indicating the consistent growth pattern, with a 25% increase in 2022, returning to pre-pandemic levels.

THE CONTRIBUTION OF THE GAMBLING & BETTING SECTOR

Although with little variation, the gambling and betting sector (public and private) has been one of the verticals that contributes the most in terms of revenue, especially in the number of transactions, and is also a significant contributor to the state's coffers.

In 2022, the gambling and betting sector ranks fourth in terms of revenue, and as in the previous five years, it leads the ranking by a significant margin in terms of the number of transactions, with annual increases averaging around 8% when focusing on buying and selling.

This reality means that the gambling sector, similar to the overall e-commerce industry, maintains sustained growth year after year.

Gambling, a Driver of Annual Revenue in the Online Space

The volume of business in terms of revenue and the number of transactions in the gambling and betting sector (including contributions from both the private and public sectors) consistently places it among the top four branches of activity. Moreover, unlike TV subscriptions or air transportation, the vast majority of operations are carried out within Spain and with companies that generate revenue in our country.

In this digital era, e-commerce has found in leisure, and particularly in gambling, one of its main collaborators in this consumer revolution, as reflected in the data we have analyzed from 2016 in reports from the National Commission of Markets and Competition (CNMC). These reports show that e-commerce has surpassed its record revenue each year in Spain, and within this landscape, the gambling and betting sector has consistently proven to be a leading activity.

Within the vast panorama of e-commerce in Spain, the gambling sector also stands out as one of the leaders in terms of annual number of transactions since 2016. This category encompasses a range of services, primarily transactions (deposits or withdrawals) with regulated operators and the acquisition of products from SELAE and ONCE on their respective online platforms.

The convenience and accessibility offered by e-commerce have driven consumers to use online platforms to enjoy gambling and betting, significantly contributing to total revenue even during months with stricter restrictions due to the Covid-19 pandemic.

The boost to the local economy

In addition to the convenience for consumers, e-commerce in the gaming sector has also had a positive impact on revenue and contributes to the local economy as the workforce and tax revenues generated increase each year. Unlike other segments, which largely channel their profits outside of Spain, the gaming segment is a driving force for the Spanish economy, both online and offline.

In any case, when analyzing the geographical segmentation of revenue in 2021 and 2022, the operations are mostly directed towards Spain, including the gaming segment. However, games and gambling are also one of the branches of activity with the highest volume of business from Spain to foreign markets, surpassing 5% in both years. This percentage places the sector third on the list of activities with transactions directed outside the country. The leaders in this field are clothing (9.9%), auxiliary services to financial intermediation (6.3%), and then gambling and betting.


Looking at the historical data from 2016 to 2022, in 2016, the gaming industry ranked sixth among the branches of activity contributing to e-commerce, accounting for 3.5% of total transactions and revenue (840 million euros).

A year later, the sector reached an absolute record with 6.8%, although this measurement differed from other tourism-related areas.

In 2018, the gaming sector generated 1.6 billion euros (4% of total revenue). In 2019, there was a slight variation, reaching 1.9 billion euros, and it remained relatively stable from then on, with increases of 4.78%, 4.4%, and 4.5% between 2020 and 2022, resulting in total revenues of 2.528 billion, 2.538 billion, and the current figure of 3.240 billion euros.

Surprisingly, only in 2017 (AWUI Report), the gaming sector led the ranking in revenue, reaching 6.8%. However, this was due to different methods of measuring the tourism and travel sectors.

CONCLUSION

In this article, we have explored the importance of the gambling sector in Spain's e-commerce, showcasing a sustained trend over time. It demonstrates how the era of entertainment and digital services has transformed the way people consume various regulated gaming and betting products online.