The market continues to experience a trend of revival of land-based casinos, following the full and final removal of public health restrictions implemented to combat the COVID-19 pandemic. From an annual perspective, the gross gaming revenue generated in the year 2022 by land-based casino gaming increased by 76.5% as compared to the previous year, having remained relatively stable throughout the first two quarters of 2023.
There are currently 12 land-based casinos operating in nine different gaming areas in Portugal, with two main groups (Estoril-Sol and Grupo Solverde) controlling approximately 85% of the market by revenue. In 2022, two concessions were put out for tender for the Lisbon/Estoril gaming area and the Figueira da Foz gaming area, but did not attract significant interest; the public tender for the Lisbon/Estoril concession had only two bidders (one being the incumbent operator, and ultimately the winning bidder) and the Figueira da Foz concession had only one (the incumbent operator).
There are three concession contracts that will end on 31 December 2025 (Póvoa do Varzim, Espinho, and the Algarve) and a public tender for each of these concessions must be opened. These may well be the last public tenders for the operation of land-based casinos to be launched in Portugal this decade.
In the online gaming segment, there are currently 17 operators and 30 licences issued (13 sports betting licences and 17 games-of-chance licences), with a total gross gaming revenue of EUR656.1 million in 2022 (a year-on-year increase of 23.3%). This upward tendency is continuing in 2023, with online gaming revenues increasing slightly in the first and second quarters, as compared in each case to the immediately preceding quarter.
There have been no recent changes to the land-based or online gaming legal frameworks.
Social Gaming
There is no specific regulation on social gaming.
E-sports
There is no specific regulation on e-sports.
Fantasy Sports
There is no specific regulation on fantasy sports.
Skill Gaming
There is no specific regulation on skill gaming.
Blockchain or Cryptocurrency
There is no specific regulation on blockchain/crypto-related gaming.
The commercial operation of online gaming is permitted and regulated. A private entity may offer online gaming products, subject to obtaining the relevant licence(s).
There are four types of licences available, for the following activities:
The following gaming products are allowed to be offered online:
The online offering of new types of games of chance is only allowed after being authorised by the competent authorities.
Overview
The commercial operation of land-based casino gaming and bingo halls is permitted and regulated. A private entity may only operate a casino or bingo hall if it is awarded a concession contract from the Portuguese state, following a public tender process.
Land-Based Casinos
The commercial offering of games of chance is only permitted within an approved casino, located in one of the gaming areas pre-defined by statute. The Gaming Law establishes nine different gaming areas:
Currently, there are 12 casinos operating in Portugal:
The following types of games of chance are allowed to be offered in land-based casinos:
The land-based offering of new types of games of chance is only allowed after being authorised by the competent authorities.
Vessels or Aircraft Outside the National Territory, and Off-Site Casinos and Amusement Machines
The operation of casino games of chance on board aircrafts or vessels registered in Portugal may be permitted when outside the national territory. The operation of non-banked card games may also be temporarily permitted outside casinos in connection with certain events of significant touristic importance.
The permanent operation of slot halls in hotel properties located in touristic destinations may also be authorised. The permission to operate slot halls in such locations can only be granted to the casino concessionaire that operates the casino nearest to the proposed slot hall location.
Land-Based Bingo Halls
The commercial offering of land-based bingo is only permitted within an approved bingo hall. A bingo hall is only allowed to offer the game of bingo, in its traditional form or electronically.
Currently, there are 14 authorised bingo halls in Portugal:
State-Run Games
The operation of the following games is granted on an exclusive basis to Santa Casa da Misericórdia de Lisboa (SCML), a charitable public entity funded by the Portuguese state:
There are three key pieces of legislation regulating the commercial operation of gaming in Portugal:
Other relevant legislation applicable to the gaming sector is as follows:
Further regulations and regulatory instructions applicable to the operation of land-based and online gaming are issued by the Gaming Regulation and Inspection Services. These can be accessed through the following websites:
In addition, there is a specific legal framework governing state-run games. Under Portuguese law, certain forms of gaming are operated exclusively by SCML, such as lotteries (including instant lotteries), land-based sports wagering, and horse racing. The legislation applicable to state-run games is as follows:
Gaming is generally defined by reference to the play of games of chance, which are defined as those games in which the outcome depends exclusively or predominantly on a player’s luck.
The Gaming Law defines land-based gaming as the play of games and wagers carried out in casinos, bingo halls, or other places previously authorised for such purpose, and which require the physical presence of the player (at such locations).
The Online Gaming Law defines online gaming as the play of games of chance, fixed-odds sports bets and horse racing bets, pari-mutuel, or fixed odds, carried out remotely, through electronic means, computer media, telematics, interactive media, or any other means through the usage of any devices, equipment or systems that enable the production, storage and transmission of documents, data, and information. Online games of chance are defined as those in which the outcome depends exclusively or predominantly on a player’s luck, and in which the player will wage a certain amount in cash.
Key offences include:
The operation of land-based gaming activities outside legally authorised areas is a criminal offence, punishable with imprisonment of up to two years and a monetary fine. The same punishment is applied to the individuals responsible for such operation, including directors, managers, employees, and agents of the offending entity.
The unauthorised operation, promotion or organisation of online gaming activities, as well as the facilitation of play in Portugal from a server located overseas, are criminal offences punishable with imprisonment of up to five years or a monetary fine.
The play of games of chance outside legally authorised areas is a criminal offence punishable with imprisonment of up to six months and a monetary fine. The presence in an unlawful gaming site (without playing) is also punishable with imprisonment of up to three months.
There is no relevant recent or forthcoming legislation.
The regulation of gaming in Portugal is conducted by:
Both entities are departments of the National Tourism Authority.
SCML is empowered to monitor and operate state-run games, and is subject to the supervision of the Ministry of Labour, Solidarity, and Social Security.
Portugal generally adopts a prescriptive approach to gaming regulation.
There have been no recent changes or forthcoming changes on the licensing and regulatory framework.
Land-Based Gaming (Casinos and Bingo Halls)
There are two types of land-based licences:
These licences are granted to private entities in the form of a concession contract, awarded following a public tender process. A concession contract typically establishes an exclusive right to operate within a certain gaming area.
Online Gaming
The Online Gaming Law establishes gaming licences for the following types of games:
As of 30 June 2023, 17 entities were authorised to operate online gaming and wagering in Portugal, holding 30 licences in total – 13 for sports betting and 17 for games of chance.
Land-Based Casinos
There is no statutory limit to the number of concessions to be granted; availability depends on the opening of a public tender to that effect. Public tenders are only launched for concession contracts that are already in existence, and when the respective contracts are approaching their term. As a reference, public tenders for the casino concession contracts for the Estoril/Lisbon and Figueira da Foz gaming areas were launched and completed in 2022, with the winning bid belonging in each case to the incumbent operator, and with the new concession contracts awarded being dated 30 January 2023 and 17 March 2023, respectively.
Land-Based Bingo Halls
Similar to land-based casinos, there is no limit on the number of concessions to be granted; availability depends on the opening of a public tender to that effect. Public tenders are only launched for the concessions already in existence, and when the respective contracts are approaching their term. As a reference, a public tender for the Lisbon Bingo and the Nazaré Bingo were launched in 2022.
Online Gaming Licences
There is no limit to the number of online gaming licences available. Contrary to land-based gaming, an online licence is not subject to public tender and may be obtained by an entity that fulfils all legal requirements following an administrative application process with the SRIJ.
Land-Based Gaming
The public tender documents will determine the specific duration of the concession contracts and the terms of their extensions. As a reference, the term of the casino concession contract for the Estoril/Lisbon gaming area, tendered in 2022, was 15 years, extendable one time for five additional years.
Online Gaming
Online gaming licences are granted for a period of three years from the date of respective issuance. Licences are extendable for equal periods of three years, subject to the operator meeting the legal requirements for extension.
Land-Based Casinos
The award of a land-based casino concession contract is carried out by public tender, which may be open or limited to pre-qualified entities. The government cabinet member with the tourism portfolio (normally the Ministry of Economy) is responsible for opening the tender and awarding a concession, and will also determine the tender process, timeline, and documentation, including the concession contract draft. The overview and implementation of the tender is typically delegated to the Gaming Commission, which will appoint a selection committee to analyse the proposals and prepare a report on their feasibility and merits.
The tender documents must define the following:
In order to participate in a public tender awarding a land-based casino concession, an entity must:
Online Gaming
The award of an online gaming licence is subject to a licensing process carried out before the SRIJ. A licence application is made through the filing of a pre-approved application form, together with all supporting documents required to demonstrate the fulfilment of eligibility requirements. Applications may be made electronically, and a determination typically takes between six and 12 months.
The main requirements for an applicant to be issued an online gaming licence are as follows:
Upon a positive determination being made, the issuance of a licence is conditioned to the following elements:
Land-Based Gaming
The timeline for each public tender is defined in the respective tender documents. As a reference, in the 2022 public tender for the award of the casino concession for the Estoril/Lisbon gaming area, a proposal application had to be filed within 60 days of the tender opening and be valid for a period of 180 days.
Online Gaming
A determination is typically made between six and 12 months after an application is filed.
Land-Based Gaming
There are typically no application fees. However, the winning bidder must pay the cost associated with the execution of the contract and the respective publication in the official gazette.
Online Gaming
The applicable licensing fees are as follows:
Additionally, the bonds required to be given prior to the licence being issued are as follows:
Ongoing annual fees for land-based gaming operators are determined by the respective concession contracts. Typically, a casino concessionaire is required to pay a fixed annual fee and a variable annual fee throughout the duration of its contract.
Each public tender and concession contract will detail the requirements of the relevant casino premises, namely its standards of functionality and comfort. They will also define the non-gaming facilities that must be offered and the development and maintenance obligations of the operator.
The key statutory requirements applicable to a land-based operator in respect of casino premises are as follows:
Other requirements can be imposed under the tender documents, such as:
There are no recent or forthcoming legislative changes.
The key statutory requirements applicable to an online operator are as follows:
Only B2C operators are currently subject to licensing.
There is no specific regulation concerning the use of affiliates.
There is no specific regulation concerning white labels.
There are no recent or forthcoming legislative changes.
The SRIJ may issue orders to ISPs to block access to websites that offer online gaming in Portugal without a licence. Typically, this action is preceded by a cease-and-desist letter with a 48-hour deadline.
In respect of land-based gambling, responsible gambling requirements are mostly focused on access to the gambling floor being restricted for minors and other risk groups, and on exclusion and self-exclusion mechanisms.
Online gambling operators must adopt a responsible gambling programme and implement specific measures to promote responsible gaming, moderate play, and non-compulsive gaming behaviours.
There are no recent or forthcoming legislative changes.
Responsible gaming programmes must include and implement deposit limits, spending limits, and time limits. They must also implement self-exclusion mechanisms.
Gaming operators are subject to the Anti-Money Laundering Law (Law No 83/2017), which transposes European Union Directive 2015/849.
There are no recent or forthcoming legislative changes.
The key AML requirements applicable to gaming operators are as follows:
The Portuguese Association for Consumer Protection (Associação Portugesa para a Defesa do Consumidor – DECO) is the entity responsible for overseeing advertisement activities in Portugal, while the SRIJ and the Gaming Commission have special competence to supervise compliance with the rules concerning the advertising of gaming and wagering.
Advertisement is defined as any form of communication made by a private or public entity in the context of a commercial, industrial, or professional activity, with the purpose of, directly or indirectly, promoting:
Advertising of gaming is permitted if it complies with the following requirements:
There is a series of provisions aimed at protecting minors, such as prohibiting gaming advertisement addressed to minors or using minors. In addition, gaming advertisements cannot be placed inside or within 250 metres of schools or other facilities developed for the use of minors, nor in any events in which minors are the main participants.
The Gaming Commission has also published a best practices handbook for the advertisement of gaming products and services, which recommends that advertisement of gaming should not take place:
Sanctions resulting from infringement of advertisement laws include:
There are no recent or forthcoming legislative changes.
Gaming concessionaire must disclose the transfer or pledge of any of its registered shares (which must always represent at least 60% of its share capital) within 30 days of becoming aware of such transfer or pledge.
Land-Based Concession Agreements
An acquisition of shares representing more than 10% of the share capital of a casino concessionaire or which directly or indirectly causes a change in control of the concessionaire requires government approval. The same requirement applies to the assignment to a third party of the gaming operations or other material rights and obligations of the concessionaire under its concession contract.
In addition, tender documents may prevent or limit direct or indirect participation in the share capital of a concessionaire by another concessionaire, and impose obligations of pre-approval in the case of a merger, demerger, or conversion of the concessionaire.
Online Gaming
An online gaming licence may only be transferred to a third party with the pre-approval of the SRIJ, including in the event of a merger or demerger, as well as a direct or indirect transfer of shares of the licensee, whereby the acquiring entity comes to hold a majority stake in its share capital, or to hold more than half of its voting rights or the ability to appoint more than half the members of the board of directors.
There are no specific requirements for passive investors in acquisitions or changes of control, without prejudice to the competition law.
The SRIJ is the entity responsible for supervising casino concessionaires, online gaming licensees, gaming employees, and gamblers. It has the power to conduct investigations and to initiate administrative and misdemeanour proceedings against such entities and individuals, in the event of breach of gaming laws and regulations or of the terms of the respective licence or concession contract. The Gaming Commission has the power to issue determinations in respect of the administrative and misdemeanour proceedings initiated by the SRIJ, and apply sanctions.
Unlawful gaming activities that may constitute a criminal offence must be reported by the gaming regulatory authorities to the police or the public prosecution for investigation.
The Gaming Commission can apply sanctions in the form of financial penalties, and can also suspend or revoke online gaming licences. The suspension or revocation of land-based gaming concession contracts can only be determined by the government’s cabinet of ministers.
Financial penalties for breach of provisions of the Gaming Law vary between EUR12,500 and EUR25,000. Financial penalties for breach of the Online Gaming Law vary between EUR2,500 and EUR50,000.
The Gaming Law prescribes that whoever, by any means, operates land-based gambling outside the legally authorised venues may be punished with imprisonment of up to two years.
In respect of online gaming activities, the Online Gaming Law prescribes that whoever, by any means and without being duly authorised, operates, promotes, organises or consents to the operation of online gaming or wagering, or makes their practice available in Portugal from servers located outside of the country, may be punished with imprisonment of up to five years.
Land-Based Gaming
Land-based casino games are subject to a special gaming tax (IEJ), levied over the monthly opening float (not gross revenue). The tax rate varies according to the geographic gaming area where casinos are located.
In addition, a casino concessionaire must pay a financial consideration under the terms of the respective concession contract. In the case of the Estoril/Lisbon concession (awarded pursuant to a contract dated 30 January 2023, published in the second series of the official gazette of 20 February 2023), this consideration is composed of a fixed consideration of no less than approximately EUR15 million and a variable consideration of 50% of the gross gaming revenue (but never less than EUR56.5 million). Both considerations are determined with reference to the year 2022 and updated annually according to Portugal’s consumer price index. The payment of the variable consideration discharges the obligation to pay the special gaming tax (in the amount that does not exceed such consideration) and other government fees.
Online Gaming
Online gaming is subject to a special online gaming tax, applicable as follows:
No legislative reform is expected in land-based or online gaming.
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