Portugal.- In a significant move, the Portuguese Parliament has decided to tighten the reins on gambling advertising and promotion. This decision was made during a session on Friday where lawmakers voted to push forward five proposals by the left-wing ecologist party, Livre, to the committee stage. Among these proposals are plans to limit online gambling advertisements, prohibit sports sponsorships by gambling companies, and mandate addiction warnings on gambling-related content. A contentious proposal to ban the sale of scratch cards in healthcare facilities, however, did not pass.
At the same time, the Socialist Party has endorsed a non-binding resolution that calls on the government to modernize Portugal’s gambling regulations. The proposed changes include the establishment of a centralized self-exclusion system, improved regulatory oversight, and the allocation of gambling tax revenues to bolster tourism in underdeveloped areas of the country.
Support for these proposals has also come from other left-leaning parties such as the Portuguese Communist Party (PCP), the Left Bloc (BE), and the People-Animals-Nature Party (PAN). However, the ruling Social Democratic Party (PSD) criticized Livre’s proposals as overly simplistic and potentially unconstitutional. PSD representatives argued that such measures might threaten state revenue.
The Portuguese Online Betting and Gambling Association (APAJO) has stepped in to defend advertising, describing it as essential for consumer protection. According to Ricardo Domingues, APAJO’s president, advertising serves as the primary advantage licensed operators have over illegal ones, helping consumers differentiate between safe, licensed offerings and unsafe, unlicensed ones. The concern, he expressed, is that restricting ads might inadvertently bolster the black market, an issue that Italy is currently grappling with after banning gambling ads—a decision it is now considering reversing.
Domingues emphasized that efforts should primarily tackle the black market, pointing out that 40 per cent of Portuguese online gamblers use illegal platforms, with three-quarters unaware of their illegality.
Exploring Portugal’s Gambling Framework: Regulation and Revenue
Portugal’s gambling sector operates under a dual legal framework. On one hand, land-based gambling venues such as casinos, bingo halls, and arcades are governed by the Gambling Law of 1989, which confines operations to specific municipal zones. On the other hand, online gambling and sports betting are regulated by Decree 66/2015.
The Gambling Regulation and Inspection Service (SRIJ) oversees licensed online operators, who must comply with consumer protection standards and are subject to tax rates ranging from 8 to 16 per cent on sports betting and 25 per cent on online casino revenue. While initially perceived as uncompetitive by some operators, Portugal’s tax landscape has become relatively favorable compared to the recent hikes in other Western European countries.
Interestingly, the first quarter of this year witnessed a dip in Portuguese online gambling revenue—marking the first quarter-on-quarter decline in three years. Total revenue reached €284.7 million, representing a 9 per cent increase from the previous year but a 12 per cent drop from the record €323 million reported in the last quarter of 2024. When compared year-on-year, the growth was significantly lower than that of previous quarters.
Online casino gross gaming revenue amounted to €169.7 million, experiencing a 6 per cent rise from the previous year but an 8 per cent decline quarter-on-quarter. Meanwhile, online sports betting gross revenue was €114.9 million, up 14 per cent year-on-year but down 17 per cent from the fourth quarter of 2024.
Contrasting Perspectives on Gambling Regulation
While the proposed restrictions aim to curb potential harms associated with gambling, they also spark a debate about the economic implications. The arguments highlight a tension between consumer protection and economic benefits, reflecting a broader global discussion on the regulation of gambling.
Critics of the proposals argue that limiting advertising could hinder the growth of the legal market, which provides substantial tax revenues that fund various public services. They warn that excessive regulation might drive consumers to unregulated, illegal platforms, thus reducing state revenue and undermining efforts to ensure safe gambling practices.
On the contrary, advocates for stricter regulations argue that the social costs of gambling addiction and its associated problems outweigh the financial benefits generated by the industry. They maintain that tougher advertising restrictions and regulatory oversight are necessary to safeguard vulnerable populations and maintain public health.
As Portugal navigates this complex regulatory landscape, it becomes evident that a fine balance is required—one that protects consumers and ensures economic stability. The outcomes of the parliamentary discussions and the eventual impact on the gambling sector remain to be seen, as stakeholders continue to engage in dialogue to shape the future of gambling regulation in the country.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
