Portugal’s high tax a hindrance to gambling market’s growth?

The tax regime imposed by Portugal’s three-year-old gambling law seems to be a hindrance for new gambling companies. As per the law, remote gambling operators need to get a license from the country’s gambling regulator Serviço de Regulação e Inspeção de Jogos (SRIJ). How many operators obtained license in the last two years? Zero.

The first company to get the license under the new law was Betclic, owned by the French gambling group Betclic Everest Group, back in May 2016. The license was for sports betting. Eleven more licenses followed, three for sports betting, and eight for online casino and poker.

The tax regime of Portugal’s market drew quite some criticism not just from the union but also from gambling industry stakeholders. The bone of contention is the decision of Portuguese lawmakers to tax online sports betting services on turnover and online casino games at a significantly higher rate on revenue than usually implemented in other European countries was met with strong negative reactions.

Industry stakeholders urged Portugal’s government to review its new gambling law and swap the tax regime for a more reasonable one. Lawmakers, in turn, said that a review of the effectiveness of the new regulations would only be conducted two years after the first license was granted.