Printed version. A new increase was registered during the nine months of this year, on the basis of an annual comparison, of the amount spent by Greeks on games of chance. Based on the Commission’s calculations Gaming Supervision and Control (EEEP)during the period January – September on games of chance 10.2% more money or 11.3 billion euros in total.
These correspond to the revised TGR, which, according to the independent Authority, reflects the sums spent in a more accurate way, because it results from the total winnings distributed to the players plus the money collected by the provider as wreck, ie a guaranteed profit.
This amount, according to the EEEP, is a submultiple, in relation to the much larger total turnover (TGR - Total Gaming Revenue), which corresponds to the value of the bets that include wins that have been reset and the bonuses of the providers.
“The TGR does not reflect the economic reality. A country with a GDP of 220 billion euros cannot have 30 billion euros in the gaming market. When someone buys a lottery ticket or plays joker and pays 10 euros, this is indeed the turnover. But if a player bets online or in gaming machines he plays and replays the win. However, every “hit” it makes counts as a TGR and is therefore inflated”, notes EEEP, indicating that it stops publishing the unreviewed TGR.
OPAP has about 50% of the market, followed by online companies.
As is evident from the processing of the EEEP data, the priority at the TGR level has been amended by OPAP with 5.1 billion euros (+7.5%). The second largest TGR, at 5 billion euros, corresponds to online companies, after an increase of 14.6%, compared to the nine months of 2023. Also, the revised turnover increased by 9.38%, to 921 million euros for land-based casinos. 8.36% for lotteries and 23.6%, to 20.3 million for the hippodrome.
In terms of gross revenue (GGR), which corresponds to the money that ends up with suppliers after winnings have been distributed to players, it increased by 10.4% in total, to around €2 billion. The amounts that ended up in the coffers (GGR) of the online companies after deducting the profits were 746.5 million euros (+20.7%). This is followed by the lotteries with a GGR of 216.8 million euros (from 236.5 million) and the race course which showed a gross income of 5 million euros.
The increase in the value of the gambling market means an increase in tax revenue for the State. In total, in the nine months of this year, compared to last year, the State’s rights from all the games increased to 443.2 million euros (from 388.1 million), and the players’ tax increased to 284.4 million euros (from 240.3 million).
Online gaming provides the largest tax revenue from player fees and taxes, which totaled €452.6 million and increased by 21.5% compared to the nine months of 2023.
The second largest source of revenue (tax) for the State from games of chance is OPAP, which corresponds (in players’ rights and tax) to approximately 210 million euros, an amount that is higher by 8.9%, compared to nine a month of 2023.
How does OPAP’s market dominance affect competition and consumer choices in the Greek gaming sector?
Interview between Time.news Editor and Gaming Industry Expert
Time.news Editor: Welcome to our interview segment. Today, we’re joined by Dr. Elena Georgiou, an expert in gaming economics and regulations. Dr. Georgiou, thank you for being here.
Dr. Elena Georgiou: Thank you for having me. It’s a pleasure to discuss such an important topic.
Editor: Recent reports indicate that Greeks have increased their spending on games of chance by 10.2% this year, totaling around 11.3 billion euros. What do you think are the main drivers of this trend?
Dr. Georgiou: There are a few factors at play. The ongoing digital transformation has made gambling more accessible, especially online. Additionally, the rise in disposable income post-pandemic has allowed more individuals to indulge in such activities. There’s also a cultural aspect; leisurely activities, including gambling, have become more integrated into social life.
Editor: The Gaming Supervision and Control Commission has revised the Total Gaming Revenue (TGR) to reflect a more accurate picture of the market. Can you elaborate on the significance of this change?
Dr. Georgiou: Absolutely. The EEEP recognized that the previous TGR figures were inflated due to the way wins and replays were counted. An accurate TGR ensures transparency and helps policymakers understand the economic impact of gaming. It’s crucial for regulation and taxation policies, and it allows stakeholders, including the government and operators, to make informed decisions.
Editor: So, if the TGR does not reflect the economic reality of the gambling market, what does this mean for consumers and regulators?
Dr. Georgiou: For consumers, an inflated TGR may lead to misconceptions about the actual returns and profits involved in gaming. For regulators, adjusting their perspective allows for better-targeted strategies aimed at consumer protection, preventing gambling addiction, and ensuring fair practices in the industry.
Editor: The report states that OPAP controls about 50% of the market share. What does this dominance indicate about competition and consumer choice in the Greek gaming sector?
Dr. Georgiou: OPAP’s dominance indicates a concentrated market, which can result in less competition, potentially leading to higher prices and lower innovation in service offerings. However, the presence of online companies provides some level of competitive pressure. It’s essential for regulators to monitor this balance to ensure consumers have access to a variety of gaming options.
Editor: Based on the current trends, what recommendations would you give to Greek policymakers regarding the gaming industry?
Dr. Georgiou: I would recommend a few key actions. Firstly, enhance consumer protection measures, particularly focused on responsible gambling practices. Secondly, consider regular audits of market data to ensure transparency and accuracy in reporting. Lastly, encouraging competition in the market could foster innovation and improve service quality while balancing the interests of consumers and operators.
Editor: Thank you, Dr. Georgiou. Your insights today shed light on a complex and evolving industry. We appreciate your time!
Dr. Georgiou: Thank you! I enjoyed our conversation.