Portugal's Online Gambling Revenue Hits Record High Amid Growing Illegal Market Concerns

Portugal’s online gambling market has reached new heights, with revenue hitting €261.8m (£223.1m/$289.2m) in the second quarter of 2024. This marks a record-breaking figure and the eighth consecutive quarter where revenue has set an all-time high. The Q2 total narrowly surpasses the previous record of €260.8m from Q1 and is 27.2% higher than the same period in 2023, according to data from the Serviço de Regulação e Inspeção de Jogos (SRIJ), Portugal's gambling regulator. However, while online gambling continues to thrive, local operators are increasingly concerned about the growing threat from illegal gambling activities in the country.

In Q2, online casino games were the leading revenue generator, contributing €158.5m, which represents a 29.9% increase from €122.0m in 2023. Despite this growth, the figure reflects a slight decrease from the €160.3m recorded in Q1. Players wagered €4.37bn across online casino games during the quarter, a 34.7% year-on-year increase and a 0.4% rise compared to the previous quarter. Slot games dominated the online casino sector, accounting for 82.3% of the total spend, followed by French roulette at 6.5%, and blackjack at 4.9%, with the rest spread across dice games and poker.

The sports betting sector also saw significant growth, with revenue increasing by 23.1% year-on-year to €103.3m, which is also 2.8% higher than the €100.6m generated in Q1 2024. Players wagered €462.3m on sports during the quarter, a 29.3% increase from the previous year, although this total was 19.5% lower than in Q1. The Euro 2024 football tournament, which began toward the end of Q2, had a muted impact on the overall betting figures. Football was the most popular sport for betting, making up 69.3% of all sports bets, followed by tennis at 19.9%, basketball at 6.8%, and other sports at 4.1%.

The quarter also saw a rise in online gambling activity, with 287,600 new customers registering for accounts. However, 136,800 accounts were canceled during the same period, leaving over 4.4 million active accounts in Portugal by the end of Q2. Additionally, self-exclusions increased, with 47,300 consumers opting to block themselves from gambling, bringing the total number of self-excluded players to 256,900 by the end of June. The SRIJ also took action against illegal operators, issuing closure notifications to 38 websites found to be operating unlawfully in the country.

While the online sector has flourished, Portugal’s land-based gambling market faced challenges, with total revenue falling to €63.7m in Q2, a 4.5% decrease from the previous year. Revenue from physical slot machines saw a slight increase of 0.8%, reaching €50.0m, which accounted for 78.4% of the total earnings. However, revenue from casino-style games and bingo dropped by 19.9%, totaling €13.8m, with declines noted in baccarat, blackjack, and American roulette.

These developments come amid growing concerns over the illegal gambling market in Portugal. The Portuguese Online Gambling and Betting Association recently warned of the “imminent danger to user safety,” citing a survey that found 41% of Portuguese players use unlicensed gambling platforms. This figure rises to 52.1% among players aged 18 to 34. Licensed operators in Portugal face hefty taxes, including an 8% turnover tax on sports betting and a 25% gross gaming revenue tax on online casinos. The association has previously taken legal action against social media influencers promoting illegal sites, highlighting the ongoing struggle to curb the illegal gambling market despite the robust growth of the legal sector.

By fLEXI tEAM