Portugal Achieves Record Online Gambling Revenue in Q2
Portugal’s online gambling industry continues its impressive growth trajectory, with revenue reaching a record €261.8 million in the second quarter of 2024. This marks the eighth consecutive quarter of record-breaking earnings for the sector, underscoring the sustained expansion of online gambling in the country.
According to the Serviço de Regulação e Inspeção de Jogos (SRIJ), Portugal's gambling regulatory body's official revenue report, the Q2 2024 revenue narrowly surpassed the previous record of €260.8 million set in the first quarter of the year. The latest figures represent a significant 27.2% increase compared to the same period in 2023, highlighting the strong upward trend in the online gambling market.
However, while the legal market is flourishing, there are growing concerns among local operators regarding the increasing threat posed by illegal gambling activities. As the licensed sector thrives, the illegal market is also expanding, potentially undermining the success of regulated operators.
Online Casino Games Lead the Charge
Online casino games played a pivotal role in driving the revenue surge in Q2 2024, contributing €158.5 million to the total, marking a 29.9% year-on-year increase from €122.0 million in Q2 2023. Although this is slightly lower than the €160.3 million recorded in the first quarter of 2024, it still reflects the strong performance of online casinos.
Players wagered a total of €4.37 billion on online casino games during Q2, which is 34.7% higher than the same period last year and marginally up by 0.4% from the previous quarter. Slots dominated the online casino landscape, accounting for 82.3% of all wagers. French roulette followed with a 6.5% share, while blackjack made up 4.9%. The remaining bets were distributed among dice games and poker.
In the sports betting sector, online revenue reached €103.3 million, a 23.1% increase from Q2 2023, and a 2.8% rise compared to the €100.6 million generated in Q1 2024. Despite the boost from the Euro 2024 football tournament, the total amount wagered on sports during the quarter was €462.3 million, a 19.5% decline from the previous quarter. Football remained the most popular sport for betting, making up 69.3% of all wagers, followed by tennis at 19.9%, and basketball at 6.8%.
Surge in New Registrations and Self-Exclusions
The second quarter of 2024 saw a notable increase in new player registrations, with 287,600 customers signing up for online gambling accounts. However, there was also a significant number of account cancellations, with 136,800 accounts closed during the same period. By the end of June 2024, there were over 4.4 million active online gambling accounts in Portugal.
Self-exclusion rates also rose during the quarter, with 47,300 consumers opting to block themselves from gambling. This brought the total number of self-excluded players to 256,900 by the end of Q2. The SRIJ responded to illegal gambling activities by issuing closure notifications to 38 websites operating unlawfully in the country.
While the online gambling sector in Portugal continues to thrive, the land-based sector is facing challenges. Revenue from land-based gambling fell to €63.7 million in Q2 2024, a 4.5% decrease compared to the same period in 2023. Physical slot machines, which accounted for 78.4% of all land-based revenue, saw a modest increase of 0.8%, reaching €50.0 million. However, revenue from other casino games and bingo dropped by 19.9%, totaling €13.8 million. Traditional casino games such as baccarat, blackjack, and American roulette also experienced declines.
Industry Concerns Over Illegal Gambling
Despite the robust growth of Portugal's online gambling market, there are rising concerns about the proliferation of illegal gambling activities. A recent survey by the Portuguese Online Gambling and Betting Association highlighted the challenges facing the regulated market. The study found that 41% of players in Portugal engage with unlicensed gambling platforms, with this figure rising to 52.1% among those aged 18 to 34.
The association has emphasized the burden of high taxes on licensed operators, which include an 8% turnover tax on sports betting and a 25% gross gaming revenue tax on online casino games. These financial pressures, they argue, make it difficult for regulated operators to compete with illegal platforms.
In response to these challenges, the association has taken legal action against social media influencers promoting illegal gambling sites, stressing the need for stronger enforcement and regulation in the industry.
Source:
''Portugal online gambling revenue hits record high in Q2, land-based declines'', igamingbusiness.com, August 19, 2024.
