Exploring European Online Gambling Markets – Portugal
Published: March 17, 2024 | Author: Ron Clarke
As we embark on our exploratory series across European online gambling markets, our first destination is Portugal. This chapter aims to unpack the state of the Portuguese online gambling market in 2023, shedding light on the regulatory situation, market trends, revenue records, and consumer behavior that have defined the sector over the past year.
Regulatory Framework
The online gambling market in Portugal is controlled by a strong regulatory system, directed by the Serviço de Regulação e Inspeção de Jogos (SRIJ). This system, established after the market opened in 2015, sets rules for operator licenses, enforces serious standards for player safety, and includes measures to prevent fraud. To operate, gambling operators must have a license from the SRIJ, showing they meet operational and financial requirements. This framework also focuses on protecting players, with tools for self-exclusion and limits on bets. This approach ensures a secure gambling environment and showcases Portugal as an example of regulatory excellence in the European online gambling field.
Record-Breaking Revenue Growth in 2023
The Portuguese online gambling market concluded 2023 on a high note, smashing previous revenue records for the sixth consecutive quarter. In Q4 alone, the revenue soared to €227.4 million, marking a 5.6% increase from Q3’s €215.4 million and an impressive 16.4% rise from Q4 of 2022. This trend was not isolated to the last quarter; each quarter of 2023 witnessed revenue surpassing the figures from the corresponding periods in 2022, indicating a growing interest in online gambling among Portuguese consumers.
The Surge in Online Casino Popularity
A significant driver of this revenue growth was the online casino segment, which alone contributed €154.5 million in Q4, achieving a 40.7% year-on-year increase. The interest in online casino games was evident, with consumers spending €3.84 billion in Q4, showcasing a preference for slots, French roulette, and blackjack among other games. This surge in online casino activity underlines a shifting pattern of consumer behavior, with an increasing inclination towards virtual gambling experiences.
Sports Betting: Mixed Results
While online casinos flourished, the sports betting segment faced its challenges. Despite a 16.0% increase in player spending, reaching €532.1 million in Q4, sports betting revenue experienced a downturn, dropping by 14.8% to €72.8 million. Football remained the top choice for bettors, followed by basketball and tennis, indicating the lasting popularity of traditional sports betting activities despite the revenue decline.
New Registrations and Self-Exclusions
The market also saw a rise in player engagement, with new online gambling account registrations reaching 319,500 in Q4, significantly higher than the previous year. At the same time, the number of self-exclusions rose to 215,000, highlighting a growing awareness and utilization of responsible gambling measures among the Portuguese gambling community.
The Land-Based Sector: Facing Challenges
While online gambling thrived, the land-based gambling sector witnessed a slight downturn, with revenue falling by 3.9% to €64.6 million in Q4 of 2023. The decline in land-based slot machine revenue and casino-style games underscored the shifting focus of gamblers towards online platforms.
As we conclude our journey through Portugal’s online gambling market, we leave with a deeper appreciation for its balanced approach to growth and regulation. This exploration not only enriches our understanding but also raises curiosity about the future trends that will shape the gambling landscape across Europe.
