Steady Growth in Portugal’s iGaming Industry Amid Concerns Over Illegal Markets

Online Gambling Revenue Reaches New Heights

Portugal’s online gambling sector continues its upward trajectory, with revenue reaching a record-breaking €261.8 million in the second quarter of 2024.

This marks the eighth consecutive quarter of growth for the industry, with a slight increase from the €260.8 million generated in the first quarter.

The latest figures also represent a 27.2% rise compared to the same period in 2023, according to data from the country’s regulatory body, Serviço de Regulação e Inspeção de Jogos (SRIJ).

Online Casino Games Drive the Market

Online casino games played a pivotal role in the industry’s success, contributing €158.5 million in revenue for Q2. While this figure reflects a 29.9% year-on-year growth, it is a marginal dip from the €160.3 million recorded in the first quarter of this year.

Player activity remained robust, with a total of €4.37 billion wagered on online casino games during the quarter, a 34.7% rise compared to 2023.

Among the most popular online casino offerings, slots dominated, accounting for 82.3% of all bets. French roulette and blackjack followed, with 6.5% and 4.9% of total wagers, respectively.

Sports Betting Maintains Strong Performance

Internet sports betting also saw substantial gains, with revenue rising by 23.1% year-on-year to €103.3 million.

This figure is slightly higher than the €100.6 million generated in the first quarter, despite a 19.5% decrease in overall player spending compared to Q1.

The UEFA Euro 2024 tournament, which began in June, bolstered betting activity, particularly in football, which represented 69.3% of all bets.

Tennis and basketball followed with 19.9% and 6.8%, respectively.

New Player Registrations and Self-Exclusions

In terms of player activity, the second quarter saw 287,600 new registrations for online gambling accounts.

At the same time, 136,800 users opted to close their accounts, contributing to a total of 4.4 million active accounts by the end of June 2024.

Self-exclusion, a growing concern in the industry, reached 47,300 during the quarter, bringing the total number of self-excluded players to 256,900.

Land-Based Sector Faces Decline

While the online sector flourished, the land-based gambling industry in Portugal struggled.

Revenue from physical casinos dropped by 4.5% year-on-year, reaching €63.7 million in Q2.

Slot machines, which constitute 78.4% of the land-based sector’s revenue, saw a slight increase of 0.8%, totaling €50 million.

However, revenue from table games, including baccarat, blackjack, and roulette, fell by 19.9%, signaling challenges for the traditional casino model.

Challenges from Illegal Operators

Despite these positive figures, Portugal’s licensed operators face growing concerns over illegal gambling activities.

The SRIJ issued closure orders for 38 unauthorized websites in Q2, as the threat from unlicensed operators continues to loom.

A recent survey conducted by the Portuguese Online Gambling and Betting Association (APAJO) revealed that 41% of players are engaging with illegal platforms, with this figure rising to over 52% among younger players aged 18-34.

Licensed operators in Portugal argue that high taxes, including an 8% turnover tax for sports betting and a 25% gross gaming revenue (GGR) tax for online casinos, are pushing players towards unregulated sites.

These illegal markets, which avoid such financial burdens, pose not only economic risks but also concerns over player safety.