There was a period when Spain boasted a robust public sector that owned a wide array of companies. Decades later, many of these enterprises remain central players in the economy, with several still listed among the country’s top firms, including some in the Ibex-35. Endesa, Gas Natural, Red Eléctrica, Repsol, Iberia, Transmediterránea, Argentaria, Aceralia, and Indra were once among the public administration’s most trusted assets.
With the modernization of the Spanish economy and the country’s entry into the European Union and the euro, strategic public investments took place and national liberalization accelerated. Although many assets were privatized, the state continued to own companies under the public service umbrella, such as Correos, Renfe, Adif, Navantia and EFE. These entities frequently operate at a loss, yet the public estate still holds value in the portfolio overseen by the General Directorate of State Heritage. A company familiar to most Spaniards, its accounts sit at par with the country’s larger corporations, alongside the State Lottery and Betting Company as a centerpiece of public wealth and strategy.
The goose that lays golden eggs
The State Lottery and Betting Company closed 2022 with a record revenue of 9.698 billion euros. Fresh from the pandemic era, its profits reached 1.993 billion euros, contributing directly to public coffers, according to Insight View records.
State-run figures position it as one of the nation’s most significant enterprises. Its scale places it on par with global multinationals, producing profits akin to Telefónica and surpassing major private groups such as El Corte Inglés or Mercadona.
Beyond large earnings, the State Lottery and Betting forms part of a tightly controlled set of daily-draw activities. Only a handful of operators manage national draws, with a few private entities occasionally participating in ancillary raffles, alongside well-known charitable and social initiatives.
Roulette or bingo also matter
In 2022, 180 million lottery tenths were issued during the Christmas draw, corresponding to about 20 euros per unit and signaling a potential 3.6 billion euro in total collections. How the prize pool is distributed remains tightly structured: a significant portion funds public programs, while a portion supports winners’ allocations. The distribution model reflects a balance that aims to sustain public service funding while providing meaningful prizes to participants.
When it comes to betting, the margin for some of the largest bookmakers during major events has been cited around 3 percent. In that context, the State Lottery and Betting captures a substantial share of the market. Industry observers note that physical bingo often carries lower commissions, and slot machines tend to yield smaller margins than the lottery, with machines designed to generate engaging play rather than pure profit. The overarching theme is that gambling products in public hands mix social value with revenue for public services.
Treasury at the center
If a grand jackpot appears every year in the Christmas Lottery, the Treasury often benefits. During the first term of a prior government, a tax on prize winnings was introduced to fund public needs. Law No. 16/2012 established a tax on prizes above 2,500 euros, and that threshold has evolved over time toward higher figures.
A December 2022 report from the Tax Administration and its technicians association shows that withholdings reached 163.8 million euros. Prizes ranging from the top prize to smaller awards contributed to public coffers, illustrating a pattern where a portion of each draw returns to the state. The overall system reflects a balance: individuals purchase tickets, winners receive prizes, and the public sector secures tax and revenue contributions that support public spending.
The situation suggests a model where a citizen exchanges a modest stake for potential public benefits, with the public administration benefiting from the flow of funds into the treasury through winnings and taxes. This dynamic underlines a long-standing arrangement where public enterprises work alongside state income to sustain public programs and services.