Portugal’s Online Gambling Sector Faces a Shift After Years of Growth
Portugal’s online gambling landscape appears to be stabilizing after a prolonged phase of rapid growth. In the first quarter of 2025, the nation recorded its first quarter-on-quarter revenue decline in nearly three years, signaling potential market saturation.
According to data from the Gaming Regulation and Inspection Service, online gambling revenue reached €284.7 million ($335.4 million) for this quarter. Although this marks a 9% year-on-year increase—largely fueled by robust sports betting numbers—there’s concern about the market’s trajectory. Notably, sports betting margins for this quarter stood at a significant 23%.
A New Phase for the Market
This recent total represents a decline from the record-high of €323 million achieved in the last quarter of 2024. For the first time since Q2 2022, the sector experienced a quarter-on-quarter decrease, with a notable drop of 12%, marking the steepest decline since 2018.
Breaking down the figures further, online casinos contributed 60% of the total revenue, amounting to €169.7 million—up 6% year-on-year, but down 8% from the previous quarter. Similarly, online sports betting reported a revenue of €114.9 million, which, while a 14% increase from the previous year, saw a significant drop of 17% from the last quarter, the largest such decline since 2022.
Maturity in the Market
Ricardo Domingues, chairperson of the Portuguese Online Betting and Gambling Association (APAJO), commented that a slowdown is a natural part of a maturing market. He emphasized, "We view these changes with composure. Our primary focus remains on managing demand in light of challenges posed by unregulated operators."
Despite the revenue dip, the number of active online gambling accounts in Portugal grew by 7% compared to the previous quarter, reaching 4.8 million. The government benefitted as well, collecting €82.7 million in taxes from online gambling, which aligns with its objectives for the Environmental Fund.
Reflecting on a Decade of Regulation
The regulated online gambling sector in Portugal has been in operation for over ten years, having been legalized in April 2015. Since then, the market has evolved to include 30 licensed operators—13 for sports betting and 17 for online casinos. Last year, the industry reported an impressive gross revenue of €1.11 billion, marking a substantial increase over the €845 million recorded in 2023.
As the industry adjusts to this new reality, stakeholders remain optimistic about finding innovative ways to address challenges and leverage opportunities in Portugal’s evolving online gambling environment.