Last month, developers received final approval to break ground on Gran Scala, a Las Vegas-style mega-resort in Spain that is likely to herald a casino renaissance in the European country. However, as the world's media remains firmly focused on the ambitious project, it seems that casino gaming is not the only avenue opening up for international operators.
In 2008, two provinces of Spain - the Autonomous Community of Madrid and the Basque Country - will bear witness to the first licensed betting offices in the country. And although these two regions make up a relatively small percentage of Spain’s 17 autonomous areas, one of the country’s leading industry figures in the gaming field has said they represent just the tip of the iceberg in potential operator revenues.
Speaking at BetMarkets 2008, which opened its doors yesterday (Monday) at the Vienna Marriott, Austria, Alberto Eljarrat, CEO of Cirsa-Ladbrokes Betting Company, drew attention to the fact that although the overall gambling market in Spain totalled €28.9m in 2006, this was due primarily to revenues drawn from slots machines, Quiniela, a traditional game of chance, and the state-run ONLAE lottery, which was recently bolstered by the EuroMillions franchise.
Up until now, however, no revenue has been drawn from retail, land-based sports betting, which has always been illegal. "The betting industry in Spain is still not developed," said Eljarrat. "But sports betting will soon be evolving in the country."
The imminent change in Spanish law has led to the formation of numerous partnerships between local operators and global gambling groups. Cirsa-Ladbrokes is one such venture, representing an agreement between UK-based gaming giant Ladbrokes and Spanish entertainment and leisure group, Cirsa. The two companies have created Sportium, a newborn brand designed specifically for the soon-to-be-open LBO regions.
"The first venture will open in the coming weeks in Madrid," Eljarrat said. "The product is customised to Spanish taste, with a heavy focus being placed, obviously, on football. We will also rely heavily on self-service terminals because Spanish customers are already very knowledgeable about interactive gaming machines."
Eljarrat suggested that joint ventures with local operators would be key to entering the Spanish LBO market. He said the symbiotic relationship between Spanish operators and international bookmakers would work well because where the former have the regional-specific knowledge and existing brand penetration to reach a wide audience, the latter have the technology and the expertise to ensure profitable returns.
Indeed, similar ventures have been ratified between other companies. William Hill and Codere, for example, have formed an Anglo-Spanish partnership that has led to the birth of the Victoria brand, which has similar ambitions to that of Sportium.
While Eljarrat remained adamant that local operators would play a key role in the regulatory process surrounding Spain’s future LBOs, he reiterated the idea that the country’s 17 autonomous regions must always be treated as entirely different entities, with their own unique requirements. "Depending on the region, we could see LBOs being created not only in standalone shops, but in arcades, casinos, bingo halls and even bars," he said.
When questioned over the fate of the other 15 autonomous communities in Spain, Eljarrat hinted that the province of Valencia might be the next to house LBOs before concluding: "Some are taking their first steps. This is a wait and see situation. Madrid is a testing ground and other regions are waiting to see how it goes."
