According to data from the Dirección General de Ordenación del Juego (DGOJ), in 2006 the bingo sector generated €3.69 billion and there were 447 rooms open in Spain. Ten years later, the number of salons fell to 309 and collection has been reduced to €1.97 billion.
Also, gross margins - the difference between revenues and prizes delivered - have been reduced by 12% in the last five years: from €658 million in 2011 to €578 million in the latest data for 2016.
But the last two years have given some light of hope. After eight years of income decrease, in 2015 they rose 4% and in 2016 they have achieved a 3% increase over the previous year. Along with this, the creation of bingo halls has returned to recover the positive balance after more than eight years of decline.
But the last two years have given some light of hope. After eight years of income decrease, in 2015 they rose 4% and in 2016 they have achieved a 3% increase over the previous year. Along with this, the creation of bingo halls has returned to recover the positive balance after more than eight years of decline.
NEW TECHNOLOGIES CAN RESCUE THE BUSINESS
While the collection of traditional bingo (physical cardboard) does not stop falling, another alternative has grown: electronic bingo. Revenues from this format reached €152 million in 2016, an increase of 913% from 2011, according to DGOJ data.
However, despite this large increase, electronic bingo still does not reach even 8% of total turnover. Another alternative to the traditional crisis is online bingo. Revenues from this online gambling option have increased by nearly 600% in the last five years, to €71 million.
42% OF REVENUE IN TAXES
Of the €1,75 billion collected in 2016 from traditional bingo, not counting electronic or online, 68.3% is earmarked for the payment of prizes, as reported by the Spanish Confederation of Bingo Game Entrepreneur Organizations ( CEJ).
On the other hand, of the €555.6 million of revenue estimated by the Confederation, €232.8 million was earmarked for tax payments (42%), and the remaining €322.8 million was net income.
A GENERATIONAL CHANGE
Bingo has also been punished by the Spanish economic crisis. But the sector has also suffered a generational change in this period. According to the study "Social perception on gambling in Spain 2017" conducted by the University Carlos III and Codere, "the bingos are changing their audiences. One effect of the crisis has been the withdrawal of the
In addition, this research indicates that the economic recovery is making younger clients see this game of chance as a leisure alternative, although their visit frequency is lower than previous generations. "Undoubtedly, this evolution of its customers is due to business managements that are changing the image of these gaming rooms and turning them into entertainment centers," notes this research.
Source: GMB / Bolsamanía
