Portugal’s strategic location within Europe and its alignment with EU standards make it an attractive option for operators seeking cross-border opportunities. Even better, its expanding player base of bettors with growing interest in online betting offers significant growth potential. This detailed guide explores the legal framework and feasibility for operators considering market entry in 2024:
The Gambling History of Portugal
Portugal has a rich and complex gambling history intertwined with its cultural and economic evolution. Gambling began in earnest during the 16th century, when Portugal, as a major maritime power, was at the height of its colonial expansion. Seafarers and traders shared various games of chance from around the world, many of which became ingrained in Portuguese culture.
In its early days, gambling in Portugal was primarily a private activity, enjoyed among family and friends, often in local taverns. Card and dice games were especially popular, and public sentiment toward gambling was generally positive. The lack of regulatory oversight meant that gambling was informal and widely accepted.
As gambling’s popularity grew, so did the need for regulation. By the late 18th and early 19th centuries, Portugal saw the emergence of more organized gambling, including lotteries, raffles, and tombolas at fairs and community events. Horse racing became increasingly popular, and animal contests like cockfighting drew large crowds in both urban and rural areas. Informal betting became a regular feature of everyday life.
The expanding gambling landscape required more structured oversight, especially as the state recognized its potential as a revenue source. A turning point came with the opening of the Estoril Casino in 1916, which marked the beginning of state-regulated gambling in Portugal. The Gambling Act of 1927 established a legal framework for casinos and other gambling activities, placing them under government regulation.
Regulation evolved throughout the 20th century. Betting on sports became legal, and the National Lottery was established in 1955, expanding legal gambling access across the country.
Timeline of Key Milestones in Portugal’s Gambling History
1783: The Royal Lottery is established.
1927: First land-based venue, Casino Estoril, opens.
2003: Drafting of legislation for online gambling begins.
2010: Government authorizes sports betting.
2015: Law No. 66/2015 regulating online gambling is enacted; SRIJ is established to issue licenses.
2021: SRIJ strengthens AML requirements.
2022: National self-exclusion system is launched.
2023: Review of gambling tax structure and license fees begins.
2024: New advertising regulations introduced with tighter controls.
The Current Landscape in 2024
As of 2024, Portugal’s gambling industry is flourishing and contributes significantly to the economy. It is tightly regulated and aligned with current EU standards. Portugal’s regulatory approach emphasizes both economic development and consumer protection.
All online gambling activities are legal in Portugal, provided operators obtain and maintain valid licenses. Residents and non-residents over the age of 18 can legally gamble online if they use licensed platforms.
Moreover, winnings from online gambling are generally exempt from personal income tax for individual players. This exemption applies to all licensed activities—sports betting, online casinos, poker, and lotteries—regardless of the prize amount.
The 2015 legalization and regulation of online gambling established the foundation for a structured and transparent market. The SRIJ (Serviço de Regulação e Inspeção de Jogos) plays a central role as the regulatory body, enforcing compliance and protecting consumers. Ongoing reforms emphasize responsible gambling, AML enforcement, and advertising standards.
Companies operating without a license may be fined between €25,000 and €1,000,000, depending on the severity and scope of the violation. Executives, such as directors or managers, may face personal fines from €2,500 to €500,000 and possible criminal charges. The SRIJ has authority to seize assets, block websites, and halt transactions linked to unlicensed activity.
Regulations and Compliance
Operators seeking to obtain and maintain a license from the SRIJ must meet the following requirements:
Licensing Requirements
The licensing process is strict. Applicants must submit detailed documentation outlining their organizational structure, financial solvency, and operational model. This ensures that only stable and transparent businesses enter the market.
Technical Standards
Operators must comply with technical standards established by the SRIJ. These cover gaming systems, software integrity, and cybersecurity. Periodic audits ensure systems meet high safety and reliability thresholds.
Anti-Money Laundering (AML) Obligations
Portuguese law mandates robust AML procedures. These include player verification, transaction monitoring, and reporting of suspicious activities. Operators are expected to maintain operational transparency and respond to regulatory inquiries.
Responsible Gambling Measures
Operators must actively support responsible gambling. This includes providing self-exclusion tools, deposit limits, and clear information on problem gambling resources. Reporting these efforts to the SRIJ is mandatory.
Advertising and Marketing Regulations
All gambling advertising in Portugal must adhere to strict guidelines. Campaigns must not be misleading, must target the appropriate age group, and cannot promote excessive gambling. These rules are designed to protect at-risk populations.
Taxation and Financial Reporting
Operators are subject to specific tax rates based on their gambling activity type. Transparent financial records and periodic reporting to the SRIJ are required.
Data Privacy Regulations
Operators must safeguard user data in accordance with GDPR. Technical and organizational measures must be in place to protect player privacy and prevent misuse.
Operational and Game Fairness
Operators must ensure fair play through random number generator (RNG) validation and independent game testing. Any breach of game integrity may result in penalties or license revocation.
Jurisdictional and Territorial Restrictions
Operators must adhere to jurisdictional rules that limit the provision of gambling services to specific territories. This includes complying with restrictions on cross-border gambling and ensuring services are only offered in jurisdictions where the operator holds a valid license.
Complaints and Dispute Resolution
Operators are required to have effective procedures in place for handling player complaints and resolving disputes. This includes offering clear instructions for submitting complaints and ensuring prompt, fair resolutions. Additionally, operators must report these procedures and any outcomes to the SRIJ as part of their ongoing compliance obligations.
Fees, Taxes, and Financial Obligations
The costs associated with acquiring and maintaining a gaming license in Portugal present unique challenges compared to some other European jurisdictions. These characteristics shape how operators budget for entry and long-term operation. Together, licensing fees, taxes, and compliance costs represent a higher-than-average entry point in the EU—designed to ensure that only well-capitalized, committed operators enter the market.
Here’s an overview of the costs operators should expect.
Product Approval
Initial homologation (product approval) of technical systems costs €18,000, plus €2,000 for homologation or renewal of each betting category or type of game of chance authorized under Articles 2–4 of Article 12 of the Online Gambling Act (RJO).
Additionally, online casino licensees applying to offer new games must pay €2,000 per game and €2,000 for each game’s homologation.
License Issuance and Renewal
The initial issuance or renewal of an online gaming license costs €12,000, except for online bingo licenses, which cost €2,000. Licenses are valid for three years and renewable in successive three-year increments if all conditions are met.
Security Deposits
A security deposit held in trust by the SRIJ is required to guarantee an operator’s financial stability, commitment to compliance, and coverage of any player claims should the operator default.
If the operator fulfills all regulatory obligations and avoids liabilities, the deposit is refundable at the end of the license period or upon market exit.
€500,000 – Legal and financial guarantee
€100,000 – Guarantee of online gaming tax (IEJO)
Taxation
Operators under the Portuguese licensing regime are subject to a monthly special online gambling tax (IEJO), with varying rates depending on the type of activity, as outlined in Article 88(1), Annex I of Decree-Law No. 66/2015:
Sports Betting: Tax is based on turnover, which applies regardless of profitability—posing challenges during periods of low margins or high payouts.
For fixed-odds sports betting and fixed-odds horse racing, the IEJO is based on turnover, including the operator’s commissions. The tax rate is 8% for sports (Article 90 (1-3), Annex I) and 8% for horse racing (Article 91(5-6), Annex I).
Online Casino and Bingo: These are taxed using a progressive gross gaming revenue (GGR) model. Higher revenue results in proportionally higher tax obligations.
Online casino games and online bingo are taxed at 25% of GGR (Article 89(2) and (6), Annex I). Mutual horse racing is taxed at 25% of turnover (Article 91(1-2), Annex I).
Betting Exchanges and Mutual Horse Racing
For peer-to-peer betting formats like exchanges and mutual horse racing, where operator income comes solely from commissions, the tax rate is 35% on commissions (Article 90(7) and Article 91(10), Annex I).
Revenue generated from IEJO-taxed activity is exempt from Portuguese Corporate Income Tax and Stamp Duty (Article 87, Annex I).
Ongoing Compliance
In addition to licensing and tax expenses, operators must plan for recurring regulatory and compliance costs:
Technical Certification: Operators must have systems audited by third-party laboratories to verify technical compliance and system security.
Regular Audits: Operators must undergo scheduled audits to demonstrate adherence to Portugal’s strict regulatory and operational standards.
Regulatory Authorities for Gambling in Portugal
Several regulatory authorities collectively ensure legal, fair, and responsible operations for gambling and sportsbook services in Portugal. Among the most significant is:
Serviço de Regulação e Inspeção de Jogos (SRIJ)
The Serviço de Regulação e Inspeção de Jogos (SRIJ) is the central authority responsible for regulating and overseeing all gambling activities in Portugal. For sportsbook operators, the SRIJ is the primary licensing body, ensuring compliance with national laws and gambling regulations within Portuguese jurisdiction.
The SRIJ's responsibilities include issuing licenses for online sports betting, monitoring ongoing operations to ensure fair play, and enforcing regulations to prevent illegal activity. The SRIJ’s primary goal is to safeguard a secure and transparent betting environment—preserving market integrity for economic benefit and ensuring consumer protection.
Comissão de Jogos (Gambling Commission)
Operating under the SRIJ, the Comissão de Jogos plays a specialized role in the regulation of the gambling industry. This body focuses on strategic and operational matters, including defining technical standards for online sports betting. It also evaluates license applications and monitors adherence to gaming protocols to ensure fairness and transparency.
Understanding and adhering to these standards is essential for iGaming operators to acquire and maintain a legal license in Portugal.
Autoridade de Segurança Alimentar e Económica (ASAE)
ASAE, Portugal's Economic and Food Safety Authority, also holds regulatory authority over gambling. It plays a key role in enforcing gambling legislation, conducting regular inspections, and investigating illegal operations. ASAE helps protect licensed operators from unfair competition while preserving lawful market operations.
Turismo de Portugal
Though its primary mission is tourism promotion, Turismo de Portugal oversees the SRIJ and indirectly shapes the regulatory landscape for gambling. For sportsbook operators, this connection ensures that gambling initiatives align with national goals, including tourism and economic development—promoting a welcoming environment for international and domestic players.
Opportunities for iGaming Operators
Despite higher-than-average entry costs, Portugal’s iGaming market presents significant opportunities. With annual online gambling revenues surpassing €300 million, the market continues to expand thanks to strong engagement in online gaming and sports betting.
Portuguese players have shown a strong preference for online gambling. This cultural interest—combined with no tax on player winnings and rising digital access—creates a vibrant, profitable environment.
The market’s maturity and robust legal framework further elevate its appeal. Portugal offers regulatory stability, consumer protection, and reliable oversight—key factors that attract serious national and international operators.
Portugal's location within Europe also offers a strategic gateway to broader EU markets. Regulatory alignment with EU directives facilitates cross-border business, making Portugal an ideal hub for expansion.
Market Advantages
-
Growing market with high player engagement
-
Stable and transparent regulatory framework
-
Strong cultural preference for online betting
-
Strategic EU location offering easy market access
-
High-growth potential across digital gambling segments
Market Disadvantages
-
High licensing fees may create barriers for smaller entrants
-
Competitive landscape may limit opportunities for new operators
How to Apply for a Gambling License in Portugal
iGaming operators must follow a structured process managed by the SRIJ to acquire a gambling license in Portugal.
Here’s a step-by-step guide to understanding and completing the application process:
1. Prepare Comprehensive Documentation
Operators must compile detailed documents that demonstrate compliance and operational readiness. Required documents include:
-
Corporate information, including company structure, governance, and ownership
-
Audited financial statements
-
Business plan with detailed financial projections
-
Technical specifications describing platform architecture, software, and security protocols
2. Submit the Initial Application
3. Undergo Comprehensive Review by SRIJ
This includes background checks and verification of documents. The SRIJ ensures the operator and its key personnel meet the required legal, financial, and ethical standards.
Overview of the SRIJ approval process
4. Technical Systems Certification
Operators must have their gaming systems certified by an independent auditor to confirm they meet SRIJ’s standards. Certification documents must then be submitted to the SRIJ as proof of compliance.
5. Implement Anti-Money Laundering Procedures
Operators must establish and document AML procedures in line with both Portuguese and EU requirements:
-
KYC (Know Your Customer) processes to verify player identities
-
Transaction monitoring and reporting of suspicious activity
-
Comprehensive AML documentation and internal policies
6. Pay the Security Deposit Requirement
7. Approval and Annual Maintenance Fees
After review and verification, the SRIJ will issue a decision. If a license is granted, operators are required to pay annual maintenance fees.
8. Ongoing Compliance and Reporting
Licensed operators must maintain ongoing compliance and submit regular reports addressing:
-
Financial and operational performance
-
Adherence to technical and legal standards
Notes:
A Portuguese gambling license may be obtained by private limited liability companies established in Portugal, in an EU member state, or in a country that is a party to the European Economic Area agreement.
License requests must be submitted in paper format, which can be downloaded from the SRIJ section of the Turismo de Portugal website. Operators may also use the same form to extend existing licenses. Applications must include all required documentation and be sent to the SRIJ headquarters. All license documentation must be written in Portuguese. If any documents are in another language, they must be accompanied by an official legalized translation into Portuguese.
Licenses are valid for an initial period of three years from the date of issue and can be renewed for additional three-year periods upon request, provided legal requirements are met. Operators must submit their renewal requests at least 90 days before the current license expires. Renewal will be officially endorsed in the license.
Learn More About the Opportunities in Portugal
Whether you're a new platform exploring the Portuguese market or an established operator looking to expand, contact award-winning sportsbook provider Altenar today to learn more about strategic opportunities for growth.
Disclaimer
This information is not intended as legal advice and has been compiled from publicly available sources. It should not be used as a substitute for legal counsel. Altenar assumes no liability for any reliance placed on this content.
