Portugal Gambling Tax

The state budget passed in Portugal for 2020 implements amendments to Decree-Law No. 66/2015, which changes the special online gambling tax. 21st May 2020 Q&A: Online Gambling in Portugal. The 2015 regulatory framework for online gambling included a new tax system. Online sports betting operators are taxed from 8% to 16% on their betting turnover and those offering online casinos are taxed at rates of between 15% and 30% on gross revenues. The government of Portugal has started the review of its existing gambling tax regime. The government has appointed a working group for analysing the state of the country’s online gambling industry and finding any possible changes required in the system. The working group comprises six members, including representatives from SRIJ and Portugal’s Ministries of.
The European Gaming and Betting Association (EGBA) is asking the Portuguese government to take a look at the country’s current online gambling tax law and to revamp them. The association’s main complaint is that the tax law that are in place right now are very punitive and slow the growth of online gambling in the country.
This plea comes after a recent report revealed that 75 percent of online gamblers in Portugal prefer to play outside of the regulated Portuguese gambling market. This means that their wagers and winnings will never be taxed by the government. It also removes them from the protection provided by a licensed gambling operation.
In a statement, Maarten Haijer, Secretary General of EGBA, said
However, the current Portuguese tax regime for online gambling is discriminatory because it applies a more favourable tax for some operators, whilst others have to pay a much higher tax based on a broader tax base. As a result, applying for a Portuguese license is much less attractive for online gambling companies based elsewhere in the EU.

Haijer went on to point out that as of now only one member of the EGBA has a Portuguese iGaming license. There are other operators who are interested in entering Portugal provided the biased tax laws are changed.
The Portuguese tax laws charge online sports betting operators between 8% and 16% based on the betting turnover. Online casino games have a higher threshold. Their taxes run from between 15% and 30% on gross gaming revenue. The result is that betting companies charge higher for wagers so as to recoup their investment.
Local Gambling Market in Trouble
The EGBA has already made suggestions on how to change the current tax schemes. The association thinks it would be fairer to use the gross gaming revenues as the basis of taxation instead of turnover. Plus, a simpler flat 25 percent tax on all online gambling would be easier to implement.
A review for the current gambling laws is supposed to take place two years after the first Portuguese gaming license was issued. The first licensed was issued in 2016 but so far no review has taken place. Hopefully, when it does, the government takes the above concerns in mind when formulating any changes.
The high taxes are just one of the issues facing the Portuguese gambling market. Gabino Oliveira, president of the Portuguese Online Gambling and Betting Association points out that unlicensed operators are eating into local market share because there are no tools to combat them.
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The European Gaming and Betting Association (EGBA) has called Portugal’s gambling tax policy “discriminatory”. The group has urged the government to review how the industry is taxed after a media investigation reported that 75% of gamblers in Portugal are using unlicensed operators.
The EGBA has called on the Portuguese government to review the tax framework for the gambling industry. © Pixabay.


With the majority of Portugal’s consumers playing outside of regulated operators, the state is deprived of tax revenue, while the gamblers are unprotected by consumer protection standards.
The EGBA has asked the government to “apply equal taxes across all online gambling products” and to base the level on gross gaming revenue (GGR).
The EGBA argues that this would make the Portuguese market more attractive, as odds will be more competitive thanks to a more reasonable tax revenue.
It would also serve to pull consumers towards regulated operators, ensuring more tax revenue for the state and more safety and protection for players.
In a press release published on the EGBA’s website, Maarten Haijer, EGBA secretary general, said:
The current Portuguese tax regime for online gambling is discriminatory because it applies a more favourable tax for some operators, whilst others have to pay a much higher tax based on a broader tax base. As a result, applying for a Portuguese license is much less attractive for online gambling companies based elsewhere in the EU: for instance, only one EGBA member has a license in Portugal, while many more are very interested to obtain a license there if the tax regime becomes non-discriminatory and better suited to the online gambling environment. – Maarten Haijer, EGBA secretary general
Haijer went on to warn that:
If the tax rules do not change then Portuguese consumers will continue to find more competitive gambling products with websites which are not regulated and licensed in Portugal — which do not pay tax in Portugal and might expose Portuguese players to inadequate consumer protection safeguard. – Maarten Haijer, EGBA secretary general
Portugal Gambling Tax Returns
Portugal is currently reviewing its gambling tax framework. However, the working group undertaking the review was commissioned just one month ago and the study is not expected to be completed for two years.