The greatest impact would occur on television, which earned some 85 million euros last year from this type of advertising.

The greatest impact would occur on television, which earned some 85 million euros last year from this type of advertising.

The greatest impact would occur on television, which earned some 85 million euros last year from this type of advertising.

Alberto Garzón, during the press conference after the Council of Ministers

New setback for the income of the media, seriously injured by the economic crisis generated by the coronavirus. This Tuesday, the Government approved the ban on advertising for the game on-line except between one in the morning and five in the morning, a situation that leaves practically no room for maneuver for a sector that in 2019 contributed 3% of all advertising investment in Spain.

The sources consulted indicate invested that it is very difficult to calculate the impact, but they recognize that almost the bulk of the gaming sector’s investment in advertising is made up of the game on-line. Media revenue from gambling and betting advertising ranges from the 145.6 million it estimated InfoAdex in 2019 up to 182.9 million calculated by the General Directorate for the Regulation of Gambling.

Figures that have sustained a large part of the turnover of many media outlets, especially sports internet portals, radio carousels and television channels, open and paid. In fact, in the case of television it is estimated that they entered at least 85 million euros in 2019 for this concept.

The truth is that the new regulation of the Ministry of Consumption of Alberto Garzón -which also include the prohibition of using famous people as a claim in advertisements and customer acquisition promotions, or welcome bonuses- will end up driving away almost all of these investments.

These same sources indicate that this veto affects practically all advertising for the game that is broadcast during prime time and, in the case of radio, in all sports carousels and in nightly sports programs.

EpData.- Online gambling advertising in Spain, in graphics

A growing industry

Limiting this advertising exclusively to the time slot from one to five in the morning would not only condemn it to ostracism, but would mean that These types of ads on radio and television are practically over.

According to various sources in the media sector, we are talking about between 100 and 150 million euros less for a media strongly impacted by the covid.

In the case of InfoAdex, The 145.6 million euros that the Games and betting sector allocated to media advertising in 2019 is equivalent to everything that the two largest advertisers in the world added in that year. Spain: Volkswagen (84.5 million) and El Corte Inglés (74 million).

A market that is also growing, which has offset the decline in other sectors. In 2019, the sector grew by 11.8%, against the current of the general advertising market that fell by 0.2% and other sectors in retreat such as the automotive (-0.7%), distribution and restoration (-3.2%) and finance (-13.3%).

If we take as reference the data of the Directorate General for the Regulation of Gambling, the impact of gambling advertising rises to 182.9 million euros, to which should be added another 20.7 million a year for sponsorship. In these two cases, the year-on-year growth in 2019 was 7.4% and 43.8%, respectively.

In the case of the first half of this year, the only data is that of the Gambling Regulation Directoratereflecting a slowdown during the lockdown, but a big spike in summer.

Between January and June, advertising for the game in the media was 76.7 million euros, with records of more than 19 million between January and March and sharp falls to three and 1.4 million in April and May. However, in June it returned to higher figures than the same month last year.

Result? The media sector will no longer have another income in the worst of times, with widespread falls in billing and many problems adjusting costs.

tax impact

In the same way, if we consider that one of the effects pursued by the new regulations is to reduce Gambling, we also have a fiscal impact derived from the limitation of advertising.

Like all business activities, it is subject to taxes that allow the collection of the Public administrations. However, in the case of gambling, it is not that the amount is very significant. According to data from the Tax agency, In 2019, the State’s income through this channel stood at 53 million euros, 7.7% more than in the previous year.

In any case, most of the taxes that gambling companies have to pay in Spain are outside the scope of the State. As indicated by the Yearbook of the Game in Spain 2019, prepared by the employers of the sector, in total the companies paid about 1,339 million in taxes in 2018, the last year for which there is record. 84% of this amount went to the regional coffers.

If the taxes that have to be paid for the prizes (which are also subject to municipal taxation) are also added, two years ago some 1,748 million were entered in Spain for activity related to gambling.

On what neither the employers agree (the Gaming Business Council) neither State is in the collection figures. At the state level, companies claim to have paid the Tax Agency 216.6 million. On the other hand, the tax revenues of the Ministry of Finance remained at “only” 49 million.


Leave a Reply

Your email address will not be published.