€261.8 Million: Portugal’s Online Gambling Revenue Reaches New High in Q2 2024 – MoneyCheck

TLDR

• Portugal’s online gambling revenue reached a record high of €261.8m in Q2 2024, marking the eighth consecutive quarter of record-breaking revenue.
• Online casino games accounted for €158.5m of the total revenue, while sports betting generated €103.3m.
• The land-based gambling sector saw a 4.5% decline in revenue, totaling €63.7m for Q2.
• New player registrations increased by 287,600, but 136,800 accounts were closed in the same period.

Portugal’s online gambling industry has continued its upward trajectory, setting a new revenue record of €261.8 million ($289.2 million) in the second quarter of 2024.

This marks the eighth consecutive quarter of record-breaking revenue, according to data from the Serviço de Regulação e Inspeção de Jogos (SRIJ), Portugal’s gambling regulator.

The Q2 figures represent a 27.2% increase compared to the same period last year and slightly surpass the previous record of €260.8 million set in Q1 2024. This consistent growth underscores the robust health of Portugal’s regulated online gambling market.

Online casinos remained the dominant force, contributing €158.5 million to the total Q2 revenue, a 29.9% increase from Q2 2023. Players wagered a total of €4.37 billion on online casino games during the quarter, with slots accounting for 82.3% of all wagers. French roulette and blackjack followed, representing 6.5% and 4.9% of the total spend, respectively.

The sports betting sector also saw significant growth, with revenue reaching €103.3 million, a 23.1% increase from Q2 2023. Players spent €462.3 million betting on sports during the quarter, with football remaining the most popular choice, accounting for 69.3% of all bets. Tennis and basketball followed at 19.9% and 6.8%, respectively.

Despite the start of the Euro 2024 football tournament towards the end of Q2, sports betting spend was 19.5% lower than in Q1, suggesting that major sporting events may not always correlate directly with increased betting activity.

The quarter saw a surge in new player registrations, with 287,600 new customers signing up for online gambling accounts. However, this was partially offset by 136,800 account closures during the same period. By the end of June, over 4.4 million consumers in Portugal held active online gambling accounts.

Self-exclusions also increased, with 47,300 consumers choosing to block themselves from gambling during Q2, bringing the total number of self-excluded players to 256,900 by the end of the quarter. This rise in self-exclusions could indicate growing awareness of responsible gambling measures among Portuguese players.

While the online sector thrives, Portugal’s land-based gambling industry experienced a decline in Q2, with total revenue falling 4.5% year-on-year to €63.7 million. Physical slot machines saw a marginal increase of 0.8% to €50.0 million, while revenue from casino-style and bingo games dropped by 19.9% to €13.8 million.

Despite the booming legal market, Portugal faces a significant challenge from illegal gambling operators.

The Portuguese Online Gambling and Betting Association has warned of an “imminent danger to user safety” as the illegal market continues to attract players. A recent survey revealed that 41% of all Portuguese players use unlicensed platforms, with the figure rising to 52.1% among the 18-34 age group.

This growing threat from the illegal market is particularly concerning given the stringent regulations and high taxes imposed on licensed operators in Portugal.

Online sports betting is subject to an 8% turnover tax, while online casinos face a 25% gross gaming revenue tax. These high tax rates may be driving some players towards unregulated alternatives.

In response to the illegal market threat, the SRIJ has been taking action, issuing closure notifications to 38 websites deemed to be operating unlawfully in Portugal during Q2. However, the persistence of illegal operators suggests that more comprehensive measures may be needed to protect the regulated market and ensure player safety.

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