Portugal’s new gambling law took effect in 2015, but it was not before the spring of 2016 that the actual process of reorganizing the local market commenced. The nation’s gambling regulator Serviço de Regulação Inspeção de Jogos (SRIJ) issued a first license to an interested foreign company in May 2016 to mark the start of a new era in the provision of regulated gaming and betting services to Portuguese customers.
The regulatory body has issued a total of 16 licenses since then.
The specially assembled work group is composed of six members, including representatives from SRIJ and Portugal’s Ministries of Finance, Economy, Tourism, and Labor. They will have 30 days to review the nation’s current gambling taxation regime and present the government with its findings and proposals for potential changes in how gaming and betting services are taxed.
While the reorganization of Portugal’s market was generally welcomed by EU authorities and industry stakeholders, the country’s taxation regime was heavily criticized and rates were deemed too high to offer viable prospects for the nascent market.
Under Portuguese law, online sports betting services are taxed at between 8% and 16% on turnover, while online casino games and poker licensees pay a 15% to 30% tax on their annual revenues. Licensed operators have complained consistently about the tax rates over the course of the past years, arguing that they were unnecessarily high and that they would impact player channelization in an extremely negative manner.
Source: GMB / Casino News Daily
