The
body responsible for the online gaming industry the Serviço Regulação e
Inspeção de Jogos do Turismo de Portugal (SRIJ) has only issued six licences
since Portugal passed its online gaming act two years ago. The Government
approved rules for online gambling and betting on April 29, 2015.
During
this period, the SRIJ received 19 applications from operators who wish to
operate in the Portuguese online betting market and awarded six licenses.
According to the Remote Gambling Association (RGA) the high taxes make the
market "unattractive” to investors.
Clive
Hawkswood, the RGA’s Chief Executive said: "It is clear from all the evidence
that the Portuguese market is not operating in the way that the Government
intended. Only six licences have been granted so far, of which just two are for
sports betting which compares unfavourably with well-regulated jurisdictions in
Europe and cannot be sufficient to channel consumers into the regulated market.
The main reason for this is the 8/16 per cent turnover tax on online sports
betting which makes the market unattractive to the bulk of European operators.”
"There are also a range of regulatory issues, such as the limitations on poker
liquidity, which would benefit from reconsideration. If suitable amendments can
be made, especially on the tax front, then more operators will take out
licences and this in turn will enable the regulator to police the market more
effectively. Against this background, we strongly urge the Portuguese
government to follow the example of other EU countries where viable tax regimes
and good regulation have created markets that are successful for their
governments; provide suitable protections for their consumers; and enable the
industry to be competitive and profitable,” Hawkswood added.
The
new act fast became a matter of increasing urgency as Portugal’s economy
continued to falter and the government hoped to raise to raise an extra €25 million
in tax revenue. However the new law imposed a tax of between 15 and 30 % for
casino operators and 8 and 16 % for sports betting operators.
Although the new move marked a significant change in policy regarding gaming in
Portugal it immediately came under heavy criticism due to the high tax rate.
The RGA argued back in 2014 that the Portuguese plans for reform, in
particular, the prohibitive taxes that would apply to online sports betting
would make the establishment of a competitive licensed market almost impossible
and described the new tax rates as both "punitive” and "unworkable.”
