Interviews
“It is going to be a slow process – but great things take time”: Exclusive interview with R Franco Digital on the return of sports betting in Spain
After notching up a series of high profile deals with the likes of Dafabet and BetConstruct, we sat down with R Franco Digital’s Chief Commercial Officer, Mario Benito to talk Spain’s return to sports betting and his outlook for the market as the lockdown is lifted.
R Franco Digital has certainly signed a couple of notable deals recently, can you give us the lowdown?
It has been a busy few weeks as we get back on track in Spain! All in all, we’ve already signed agreements with several of the Spanish market’s leading tier one operators and will be announcing additional partnerships in further markets in the very near future.
Key to this has been our industry-leading portfolio of supporting products; including our IRIS Platform, as well as our Wallet, online games and renowned IRIS Power Vault – developed in tandem with the Spanish regulator, the DGOJ.
In terms of what we’ll be doing, R Franco Digital will be providing three major international operators with these tools to enter the Spanish market – as well as signing a succession of aggregator partnerships to further boost the reach of our fantastic collection of games.
We’re also expecting plenty of developments on the LatAm front (which is our second home), as well receiving our MGA Critical Gaming Supply licence in the very near future.
Is this a vote of confidence for the Spanish market returning to normal? What’s happening on the ground there?
There’s no question that the entire industry has felt the impact – with Spain (as you may have seen from the headlines) being no different. Given the need for entertainment under lockdown, there has been a considerable uptick in iGaming, despite the Spanish government’s two-month suspension on promotional activity.
Since the resumption of Europe’s most popular sporting tournaments, the sports betting vertical is gradually returning to full strength, although this process will not be complete until the new season. Given our home market is both dynamic and resilient, we are confident that the commercial landscape in Spain will return to its pre-COVID trajectory soon enough.
Having said that, land-based will likely take longer to re-emerge to full strength given it has received the brunt of the impact from COVID. To persevere, operators who have not already done began to diversify through digital channels. We set up R Franco Digital a decade ago with this role in mind – and it’s certainly proved instrumental for our local partners during this time.
What do you forecast for the first few week’s betting activity once La Liga has returned?
The resumption of Europe’s top football leagues, particularly La Liga, have seen dormant sports bettors return to the vertical en-masse. However, I do not believe activity will revert to its previous level until the new season begins. The numbers certainly back this up, and from what we’ve seen so far, the total amount wagered in the Spanish market has fallen by 40% compared to the week before La Liga was cancelled.
Plenty has been said around the cross-sell between sportsbook and casino in the past few months – has it rang true in Spain?
It’s been invaluable – and for many operators, turned from a promise to a reality. However, we shouldn’t get too carried away with the hype; we have not seen a whole legion of sports betting fans converted to slots in three short months.
To build a pandemic-proof portfolio, operators (and platform providers) need to take a long, careful look at what disciplines lent themselves well to sports bettors betting behaviours during lockdown (such as live casino) and capitalise on it moving forward.
What other alternative sporting markets have proven popular during the lockdown?
The most successful markets have been Table Tennis, and football leagues in more ‘exotic’ countries such as Belarus, that did not see their sporting calendar hindered by lockdown. Esports and virtuals have also experienced a similar spike activity as sports betting enthusiasts look to get in on alternative entertainment, although these disciplines are likely to attract a more niche type of player, especially in the case of esports, which has become a bastion of the millennial demographic.
And finally – how fast do you see retail betting returning in Spain?
It is going to be a slow process – but great things take time. The decision to re-open now falls under the mandate of Spain’s regional authorities, and it will be at their discretion. We can see this happening in real time – as although the state of emergency has ended, not every region has yet allowed betting shops to reopen. Along with land-based casinos, retail is by far one of the most severely affected sectors of the market, and I anticipate it will be a long road to recovery for many that had to endure three months of closure. Of course, we’ll be there to help.
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