Investment in bookmakers' sponsorships plummeted 79% in the third quarter of the year, after the first month of the application of the ban on advertising in the sector that came into effect on August 31.
Codere regrets in the United States the "negative stance" of the Spanish Government against bookmakers
This is clear from the latest data from the Directorate General for the Regulation of Gambling (DGOJ). The report published this Saturday includes the evolution of the months of July, August and September and therefore already includes the effect of the full application of the Royal Decree that regulates the advertising of gambling and betting houses promoted by the Ministry of Consumption in 2020.
With a single month of full validity of the veto on sponsorships, the data reflects a significant collapse of investment in this item. Despite the fact that La Liga de Fútbol began on the weekend of August 15, the quarterly variation of investment in sponsorships compared to the months of April, May and June of this year has been 78.83%. It has gone from 7.5 million euros in the second quarter to 1.6 million in this third that has just been made public.
Investment in betting advertising has also been cut significantly, considered the main way of entry to online gambling for the youngest since the amounts wagered are usually lower. In this case, investment has fallen by more than 35% in this third quarter compared to the second. It has gone from 91.9 million euros to 59.1 million.
This is the first data to be published after the drastic reduction in betting house advertising, approved by Alberto Garzón's department, became fully effective. Since the end of August, in Spain it is not possible to broadcast advertising of gambling operators outside the 1 to 5 am slot on radio and television.
These companies have also since been banned from sponsoring football clubs, a move that the ministry sent the message that the sports idols of many young people could not be linked to companies of this type. The decree also prohibited offering so-called welcome bonuses to new players.
The rule came into full force after the end of the waiting period established to extinguish betting advertising contracts contrary to the provisions of the Royal Decree. "We have achieved something that I think society is going to know how to recognize", said then the Minister of Consumption, Alberto Garzón, about a veto that, he said, "it has not been easy".
Farewell to Codere
This regulation led Codere to regret to US regulators the "negative stance" of the Spanish government against bookmakers. This company said goodbye to the Spanish stock market this Friday, after its shareholders approved its dissolution, and after losing more than 92% of its value this year, although its online gambling subsidiary will continue to be listed in the United States.
As an additional measure, the ministry has proposed a Royal Decree on safe gambling that is pending submission to the Cortes by the Council of Ministers. Among other things, the draft proposed to prohibit the use of credit cards to "intensive" players and those who have "risky" behaviors and provided that players of betting platforms and other games have to establish the maximum amount to bet and set a maximum playing time.