Date: 16.08.2024

by Sebastian Warowny

Illegal Gambling in Portugal Rises

A recent APAJO study reveals that 41% of Portuguese players use unlicensed platforms, posing a serious security risk to users. The loss in tax revenue is estimated to be more than €100 million.

Increasing Use of Unlicensed Platforms

According to the latest report by the Portuguese Online Gambling and Betting Association (APAJO), 41% of players in Portugal engage with unlicensed gambling platforms, with that number rising to 52.1% among younger players aged 18-34.

The key reasons for choosing illegal operators include higher bonuses, better odds, and a wider variety of games. Despite 90% of respondents understanding that unlicensed platforms are illegal, these sites continue to attract a significant portion of the gambling market.

Ricardo Domingues, APAJO president, warned of the imminent danger to user safety” posed by unlicensed operators. These platforms often exploit Portuguese audiences while disregarding consumer protection regulations and avoiding tax obligations. Domingues stressed that players are vulnerable to risks ranging from loss of funds to exposure of personal and financial data. He added that “illegal operators engage in predatory behavior, particularly targeting vulnerable individuals.”

Tax Revenue Losses

The Portuguese government is also losing substantial tax revenue, with APAJO estimating that over €100 million is forfeited to illegal gambling each year. Domingues emphasized the need for collaboration between licensed operators, regulators, and the legislature to prevent unlicensed platforms from using local payment methods and promoting themselves through social media and influencers.

Criminal complaints have already been filed against several influencers who profit from promoting illegal sites, including high-profile cases such as influencer Cláudia Nayara.

Despite the challenges posed by illegal gambling, Portugal’s licensed online gaming market has continued to grow, setting revenue records over multiple consecutive quarters.

APAJO has also launched campaigns such as “My Game is Serious” to promote responsible gambling and increase awareness of safe gaming practices. Efforts to channel players toward licensed platforms remain a key focus for APAJO, with the goal of achieving an 80% channelisation rate in the near future.