Who Dominates the Current Online Casino Market in Portugal?

Kay TurnerJan 14, 2020

Portugal’s gambling industry has been developing rapidly, and this has caught the eye of the Associação Portuguesa de Apostas e Jogos Online (APAJO), trying to bring home the proverbial gambling bacon.

According to a survey conducted by the group, 56% of all interviewed Portuguese gamblers placed their bets at international companies.

The study tries to correct a previous observation of Portuguese gamblers’ habits by the Universidade Nova de Lisboa which stipulated that 75% of all players in the country preferred to bet at a foreign venue.

While APAJO’s look at the gambling industry seems to be more accurate and realistic, one thing remains unchanged – international companies are clearly a preferred option to players within the country.

A Conflict Between Regulated and Unregulated Markets

The government has been trying to bring the focus back the majority of players. In a decisive move, the country regulated online gambling back in 2016, trying to eliminate offshore activities and focus the customer base back home.

Yet, some 42.2% of all respondents in the APAJO survey held an account prior to the date of legalization, and specifically with an offshore venue. Bad actors, as these companies are known, have not been banned and Portuguese residents can still access them.

While still slow, the rate of accounts opened at legal and officially-recognized accounts has been improving. In 2018, some 52% of all new accounts were opened at a legal betting or gambling website. A year after in 2019, the rate reached 70%.

There have been some interesting demographics indicators giving away an individual’s preference as well. For instance, 53% of all participants aged 18-24 said that they preferred to play at international venues, as opposed to just 29.4% in the 25-35 age range.

These numbers can be telling as to the preferences of youngsters as opposed to mature gamers. Some have suggested that looking for international operators might be a symptom that players are looking for the best possible odds due to constrained budgets whereas older gamers can afford to spend a little more on their hobby.

Portugal is of course facing other problems when it comes to gambling. In June, 2017, the government scooped up 66% of Betclic’s gambling revenue, prompting business and regular gamblers to petition the government to ease the tax burden in a bid to bolster the industry locally.

After the Big Tax Burden, a Break

While offshore online gambling is still a big part of the Portuguese gambling industry, the trend is for new gamers to focus on local solutions. One of the reason behind this is that only companies regulated by Serviço Regulação e Inspeção de Jogos do Turismo de Portugal (SRIJ) get proper exposure in the country as opposed to rogue operators which cannot get any advertisement spots.

Meanwhile, the regulator also revealed that in Q2 2019, online casinos in Portugal have grown by 29.5% year-over-year (YOY), defying any suggestions that offshore gambling is still dominating the Portuguese market.