Portugal’s regulated online gambling sector generated GGR of €284.7m in the first quarter of 2025. This figure represented a 9.1% increase compared to the same period in 2024. However, it also represents an 11.9% drop from the record-breaking €323m achieved in the final quarter of 2024.
This slowdown marks the first interruption in more than two years of consistent quarterly expansion. The data suggests the market may be transitioning from a rapid growth phase to a more mature stage, where competitive dynamics, regulatory stability and consumer behaviour are set to play increasingly decisive roles.
For stakeholders — including operators, investors and policymakers — the figures underscore the importance of strategic adaptation in a sector that, while still lucrative, may no longer guarantee uninterrupted upward trajectories.
The online gambling market was led by online casino and poker, which accounted for 59.6% of total revenue, amounting to €169.7m. This represents a year-on-year (YoY) increase of 5.9%, although it reflects a decline of 8.1% compared to the previous quarter.
Slots continued to dominate this segment, accounting for 78.2% of all online games of chance. Other noteworthy contributions included Banca Francesa (6.5%), French roulette (5.7%), blackjack (4.6%), crash games (3.4%) and poker (both non-banked and tournament modes combined) which accounted for 1.6%.
Sports betting accounted for the remaining 40.4% of revenue, totalling €114.9m. While this represented a notable YoY growth of 14.3%, it marked an even sharper quarter-on-quarter (QoQ) decrease of 16.9%.
In terms of betting volume, sports wagering recorded a reduction of €72m compared to the same period last year and €31.7m relative to Q4 2024. This decline indicates a drop in total stakes despite the increase in revenue.
Within this category, football maintained its dominant position, representing 71.2% of all registered bets, followed by tennis (16.0%) and basketball (9.2%).
Conversely, online casino betting volume grew by €313.8m YoY though it fell sharply by €482.4m in comparison to Q4 2024.
While YoY growth figures suggest a still-resilient sector, the QoQ declines across most indicators point towards a plateau. Regarding illegal online gambling in the first quarter of 2025, Portuguese authorities reinforced their efforts to combat unauthorised activity.
A total of 54 notifications were issued to illegal operators, 129 websites were flagged for ISP blocking and five cases were referred to the Public Prosecutor’s Office.
Yet, perhaps even more concerning than illicit activity is the lack of market dynamism. No new online gambling licences have been issued since 2023, leaving the current roster of 13 sports betting operators and 17 online casino operators unchanged.
This licensing freeze not only limits competition but also stifles innovation and market diversity. By offering more diverse and engaging experiences, operators could appeal to a broader customer base, ultimately driving higher revenues and strengthening their position in the regulated market.
How to stave off stagnation
To revitalise Portugal’s online gambling industry, some policy adjustments merit consideration. Introducing a B2B licensing framework could allow a more effective fight against illegal gambling and allow technology firms, platform providers and specialist game developers to operate in the regulated market, fostering innovation without necessarily increasing the number of direct-to-consumer operators.
Expanding the catalogue of licensed game types — such as esports betting, a wider range of sports and virtual casino offerings — and granting operators greater flexibility to innovate existing gaming products would certainly generate a more dynamic and competitive regulated market.
From a taxation perspective, the current tax regime — 25% on games of chance and 8% on sports betting turnover — imposes significant cost pressure.
Introducing a more flexible taxation scheme, such as scaled rates linked to innovation or investment, could promote market growth and diversification, while reducing the risk of players migrating to unregulated platforms, where they face serious risks, including the absence of consumer protection, regulatory oversight and safeguards against fraud and addiction.
Ultimately, the Q1 2025 results depict a market at a crossroads. While continued growth remains a possibility, without regulatory reform, the sector risks slipping into a pattern of stability that masks underlying stagnation.
Broadening the gaming offer, embracing new forms of licensing and rethinking taxation could help revive momentum, strengthen consumer protection and position Portugal as a forward-looking jurisdiction in the global online gambling landscape.
Filipe Mayer has been a CCA Partner since 2012 and began working for the firm back in 2005. He is responsible for the gaming area, dealing with national and international issues and clients in this area.
The post Online gambling in Portugal: Stability or stagnation? first appeared on EGR Intel.
Following revenue decline from Q1 to Q2, CCA lawyer Felipe Mayer reflects on the slow down in the Iberian market and ponders several changes that could rejuvenate the market
The post Online gambling in Portugal: Stability or stagnation? first appeared on EGR Intel.