In Portugal gambling is legally defined in two key legal instruments. Decree-Law 422/89, which applies to land-based gambling, defines games of chance as those where the outcomes depend primarily or exclusively on luck. Meanwhile Decree-Law 66/2015, which governs online gambling and betting (also known as the RJO), defines such games as those requiring the expenditure of money with outcomes based solely or mainly on chance. Together, these definitions establish that any game based on luck and requiring a monetary stake qualifies as gambling and is subject to regulation in Portugal.

The legal framework governing gambling in Portugal may be divided into three main regimes: online gambling, land-based gambling and the social gambling or State-run (lotteries). The core diplomas governing online and land-based gambling are Decree-Law 66/2015 (The Legal Framework for Online Gambling and Betting or RJO) and Decree-Law 422/89 (The Gambling Law), respectively (as in force from time to time). Social or State-run games (lotteries) were first approved by a Royal Decree issued by the Queen D. Maria I on 18 November 1783. This form of gambling is exclusively operated by SCML (Santa Casa da Misericórdia de Lisboa).

Each of these regimes has its own set of specific legal acts. In the case of online gambling, several regulations address different aspects of the system. Regulation 903-B/2015 governs all technical aspects of the gambling system, while Regulation 836/2015 outlines the main aspects of the player accounts. Additionally, there are specific regulations for each type of online game permitted, such as Regulation 425-A/2015 for bingo, Regulation 810/2015, for online poker tournaments and Regulation 903-A/2015, for online fixed-odds sports bets, among others. For Land-based gambling operations there is a legal diploma authorizing the concession of each gambling area in Portugal such as Decree-Law 15/2003 that authorises the operation of games of chance in Estoril and in Lisbon. There are also specific legal diplomas for games that can be operated within said concessions such as Ordinance 217/2007 that sets the rules for American and French roulette, French bank, Craps, Cussec, Blackjack, Poker without discard, Baccarat, Unbanked Poker Omaha, hold’em and synthetic variants and Slots. Finally, for social gambling or State-run games there is also a diploma per type of game that can be offered under this regime such as Decree-Law 314/94 that authorises SCML to organise and operate the instant lottery (commonly known as scratch cards).

The aforementioned laws and regulations are complemented by several instructions, guidelines and best practice manuals issued by the online/land-based regulator, Serviço de Regulação e Inspeção de Jogos (“SRIJ”).

Additionally, several general laws significantly impact the Portuguese gambling sector, included but not limited to those concerning Anti-Money Laundering (AML), Data Protection, Advertising and Consumer Protection.

SRIJ (The Portuguese Gambling Regulatory Authority – Serviço de Regulação e Inspeção de Jogos) is the competent regulator for both online and land-based gambling. Its scope of action includes casino gaming ( both online and land-based), online fixed-odds sports betting and online horse race betting. SCML (Santa Casa da Misericórdia de Lisboa) holds the exclusive rights to operate Lotteries and Parimutuel sports bets (also known as crossed bets) and also land-based sports betting. Finally, in what concerns Social/Skill arrangements, social gaming with no monetary prize or equivalent is regulated by the City Council of the municipality in which the company offering the promotion is incorporated.

In Portugal, operating any form of gambling requires authorization.

This being said, the only regime in which this authorization takes the form of a licence is the one governing online gambling. For land-based gambling, operations depend on a concession awarded through a public tender. Additionally, SCML is the only entity authorised to operate lotteries within Portuguese territory.

In the online gambling regime, licences are available only for B2Cs operators and only those operators that meet the requirements may apply for a licence. Online licences are valid for three years from the date of issue, after which renewal is mandatory. Operators wishing to have a «.pt» website can apply to three types of licences: fixed-odds sports betting, totalisator/pari-mutuel or fixed-odds horse racing betting and games of chance.  Software suppliers, including game provider, do not need to be licensed. However, any part of the technical gambling system or that will be made available through that system, must be certified by an independent testing lab. The responsibility for this certification belongs lies with the B2C.

In Portugal, gambling products not expressly provided for by law or that are not regulated cannot be offered. As such, the type of products that can be offered, with the exclusion of any others are, (i) for online gambling: bingo, poker without discard, American and French roulette, Blackjack, unbanked hold’em, Omaha and synthetic poker games, poker tournaments (with or without shared liquidity with France and Spain), French bank, baccarat, slots, fixed-odds sports betting, fixed-odds horse race betting, parimutuel horse race betting and crash games; (ii) for land-based gambling: American and French roulette, French bank, Craps, Cussec, Blackjack, Poker without discard, Baccarat, unbanked Poker Omaha, hold’em and synthetic (including tournament mode), Slots, traditional and electronic Bingo; (iii) for social gambling or state-run games: national lottery, bets contests named “totobola” and “totoloto”, “JOKER”, instant lottery, “EuroMillions”, “EuroDreams”, land-based fixed-odds sports bets and “TOTOSORTEIO”.

Entities seeking to obtain the necessary authorisation to operate gambling in Portugal (both land-based and online) must be incorporated as a limited liability company by shares (equivalent to a Portuguese Sociedade Anónima). Said company must be registered in a European Union Member State or in an EEA (European Economic Area) country that is subject to the administrative cooperation regime concerning taxation and the prevention of fraud and money laundering.  Companies incorporated abroad must incorporate a branch in Portugal.

The operation of land-based gambling can only occur through the awarding of a concession agreement following a public tender. The operation of land-based gambling (games of chance, including poker) is permitted only within one of the following ten gaming areas: Azores, Algarve, Espinho, Estoril, Figueira da Foz, Funchal, Porto Santo, Póvoa de Varzim, Tróia and Vidago-Pedras Salgadas.  In each of these areas, only one operator is allowed to conduct land-based gambling activities.

In limited cases specified by law, gambling may be operated outside these designated gaming areas, such as in gaming rooms (for slots), aircrafts, or ships. The specific public tender includes all necessary information related to that concession, such as the financial payments that may be due.

Online gambling operators are required to maintain a portion of the technical gambling system in Portugal, the so-called entry and registry infrastructure, which includes the gateway and the safe.  It is worth mentioning that the technical gambling system must be fully compliant with the relevant Portuguese laws and regulations to be accepted by SRIJ.  Once the licence is issued, operators must consistently meet legal requirements regarding good standing, as well as technical, economic and financial capacity. The administrative fees associated with online gambling licences correspond to an initial homologation fee currently at €20,131.14, plus €2,236.79 for each type of game to be made available on the website. The operator will be required to pay €12,837.10 for the issue of each licence and to present a guarantee, insurance or a bank deposit (per each licence) totalling €500,000.00 as collateral for the performance of all legal obligations (players’ liability) and one guarantee in the total amount of €100,000.00 as collateral for the payment of the special online gambling tax (IEJO). These security deposits are reviewed by the regulator six months after the commencement of operations and whenever necessary, so as to be equivalent to (as applicable): a) a percentage between 60% and 90% of the average six-monthly balance of the player accounts, and b) the amount equivalent to the average IEJO for a two-month period.

No, gambling laws require that stakeholders such as directors, shareholders and other responsible individuals attest to their good standing as part of the standard licensing procedure for any entity wishing to offer gambling in Portugal. Maintenance of good standing is mandatory at all times.

Gambling advertising is permitted and operates under a largely free regime, with typical limitations aimed at protecting minors and other vulnerable groups. The binding rules governing gambling advertising are outlined in article 21 of the Portuguese Advertising Act which stipulates that the promotion should focus on the entertainment aspects of gambling rather than on focusing on winning, suggestions for success or encouraging excessive gambling. Advertising to minors, using minors in ads, advertising in schools or other infrastructures intended to be attended by minors, advertising within 250 metres in a straight line from schools or other infrastructures intended to be attended by minors, advertising loans or being associated with granting loans is expressly prohibited. The Portuguese Advertising Act further stipulates that in locations where events intended for minors are being held or in which minors are participating as main participants, there shall be no references – whether explicit or implicit – to gambling and betting in commercial communications about or advertising such events.

In 2020 SRIJ issued a Best Practices Manual on the Rules Applicable to Gambling Ads that is still in force. This manual (a guideline, not a binding legal diploma) introduced two important restrictions to operators: advertising can only be broadcasted on television and on the radio from 10:30pm to 7am and provided such advertising material is not broadcasted 30 minutes before or after TV or radio content aimed at children and young people; and gambling ads should not feature any real person or fictional character that may appeal to children, such as famous football players.

The activity of marketing affiliates is currently not licensed and does not require an authorization , which makes it permissible within Portuguese jurisdiction. Affiliates must, however, be mindful and adhere to advertising and responsible gambling rules. Especially because promoting illegal gambling in Portugal can result in fines or imprisonment.

Anyone offering, promoting, organising or consenting to illegal gambling is liable under applicable local law. This extends to individuals and legal entities and both negligence and attempts to engage in such activity are punishable.

Operating illegal land-based gambling is an offense punishable by up to two years of imprisonment and fines of up to 200 daily units, while operating illegal online gambling is punishable by up to five years of imprisonment and fines up to 500 daily units.

In order to operate land-based games of chance, private companies must be awarded a concession following a public tender procedure aimed at selecting one entity to operate in one of the gambling areas existing in Portugal. The specific public tender includes all necessary information related to that concession, such as qualification criteria, location of the casino, the minimum financial payment required, the payment method or the amount due of the guarantees to be provided and, in general terms, follows the envisaged legal procedure and the terms and specifications provided for therein.

The licensing process for online gambling operator is structured into three different phases: (a) compliance – the applicant must submit extensive documentation to attest good standing, technical capacity, and economic and financial capacity along with the SRIJ official licensing form; (b) initial certification of the technical gambling system – the applicant must provide certification reports issued by an independent testing lab recognised by the SRIJ (the reports must certify the platform that will be made available in Portugal as being compliant with the applicable national laws and regulations); and (c) homologation – once the Portuguese regulator accepts the certification reports, the regulator’s technical team will perform tests on the applicant’s gambling technical system.

Following the aforementioned phases, at the conclusion of the licensing procedure, and prior to the issue of the licence, the applicant is required to pay the licence fees and provide SRIJ with its responsible gambling policy, the identification details of the bank account through which all the transactions concerning online gambling and betting activity shall be exclusively conducted, and the bank guarantees that will secure player liability and payment of taxes.

In 2017, Portugal transposed the European Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. This legislation introduced new rules applicable to both land-based and online gambling operators, placing a strong emphasis on player identity verification.

As part of these rules, operators are required to report any suspicious activities detected on player’s accounts, that may represent money laundering or terrorism financing to the competent Portuguese authorities: the DCIAP (Central Department of Criminal Investigation and Prosecution), the UIF (Financial Information Unit) and finally to SRIJ.

Gambling must be offered and promoted in a socially responsible manner, with operators required to provide cooling-off, self-exclusion (for both determined and undetermined timeframes), wager and deposit self-limitation mechanisms. Additionally, SRIJ guideline 1/2020/SRIJ/JO, dated 3 December 2020 (on online gambling), determines that where the use of the bonus requires a minimum value of real money wager(s), such minimum value may not exceed the value of the bonus awarded.

All websites must provide information on ICAD – the Institute on Addictive Behaviours and Dependencies, P.I. (ICAD, IP) – which offers free support to those dealing with addiction issues, including those related to gambling.

Both online and land-based operators must develop a plan and adopt measures that promote responsible gambling practices and provide the public, namely the players, with the necessary information, while promoting moderate, non-compulsive and responsible behaviours.

There are no regulatory requirements regarding the internal management of the company and reporting of threshold(s) to SRIJ. This being said, and related to this topic: (i) operators are required to ensure that at least 60% of their share capital is represented by shares to allow the issuer to know the identity of the relevant shareholders, at any given time. It is compulsory for operators to communicate to SRIJ all acts or business transactions that involve the acquisition, transfer or charging of such shares. Such communication must occur within 30 days of when the company becomes aware of the act or transaction in question; (ii) the licence may only be transferred with the prior authorisation of SRIJ. A licence transfer shall be deemed to occur in cases of a company restructuring which results in the transfer of the licence to another entity by means of a merger, split, entry of assets, among others, as well as in the case of a transfer, in any legal form, of a direct or indirect holding in the share capital of the operator whereby the acquirer will have a majority holding in the share capital of the former or hold over half of the votes or have the possibility of appointing more than half of the members of the board of directors, and (iii) operators are required to demonstrate their financial capacity, through the submission of annual audited accounts. Financial capacity is assessed by means of a financial autonomy indicator, demonstrated by an equity-to-total net assets ratio. Every year, the ratio shall be equal to or greater than 35% under penalty of losing the licence besides fines that may be applicable.

Anyone offering, promoting, organising or consenting to illegal gambling is subject to liability under local applicable law. This includes individuals and legal entities and both negligence and attempts to engage in such activities are punishable.

For land-based gambling operators, the main criminal offences include operating outside the authorised location specified in their concession. This behaviour is punishable by up to two years of imprisonment and fines of up to 200 daily units. Fraudulent gambling, gambling manipulation and forced gambling are also punishable by imprisonment. The infringement of administrative duties by the operators is subject to administrative sanctions through the imposition of fines that can go up to €24,939.89.  This includes, among other things, hampering inspections and breaching investment and capital obligations.

Regarding online gambling, besides being a criminal offence punishable by up to five years imprisonment or a penalty fine of up to 500 daily units for operating (or even promoting) gambling without a licence, failure to comply with any obligation under the main law (RJO) may result in warnings, compulsory pecuniary penalties or the imposition of an administrative fine by SRIJ.  Depending on the severity of the offence (minor, serious and very serious) fines range from €5,000 to €1 million or 10 per cent of the offender’s turnover – if the latter exceeds €1 million.  Different amounts shall apply if the offender is an individual. Additionally, SRIJ may notify ISPs to prevent the access to, availability and use of any illegal offer.

in addition to the penalties outlined above, players can also face fines for engaging in gambling activities if they are prohibited from doing so (such as in cases where they have submitted a voluntary exclusion request). In these scenarios, both the player and the operator may be subject to fines. Under the online regime, players who disrupt or attempt to disrupt the normal operation of the technical gambling system, may be committing a serious administrative offence that is punishable by fine ranging from €5,000.00 up to €50,000.00.

The taxation of the gambling activity in Portugal varies based on the type of gambling, the amount of income and the geographical area (for land-based) where the activity is located.

The special gambling tax (IEJ) applies to land-based casino games, and varies according to the geographical gambling area and the amount of revenue. Tax rates may vary depending on the gross gambling revenue, ranging from 2.5 per cent to 35 per cent.

Stamp duty applies to bingo (25 per cent) and state-run games (4.5 per cent included in the amount of the bet and 20 per cent on the amount of the prize if it exceeds €5,000.00, the SCML reflects the 20 per cent on the player prize if exceeding the €5,000).

The IEJO applies to online gambling, and the tax rate varies merely depending on the type of game.  In games of chance, it is settled on a monthly basis at a 25 per cent rate on the overall gross revenue of the given month.  In fixed odds sports betting, the tax is settled on a monthly basis based on the turnover of any given month at an 8 per cent rate.

Operators are not subject to corporate tax, sales tax or stamp duty on gambling operation.

It is expectable that the RJO (main legal framework for online gambling and betting in Portugal) will undergo a review in the near future. This review is expected to take place in 2025, coinciding with the 10^th anniversary of the RJO’s publication. While specific details regarding potential legislative changes are not yet clear, there is a general desire among  stakeholders for modifications that would foster a more open market (greater freedom and flexibility for operators, particularly in what comes to new products and game mechanics).

Additionally, in 2023 a new type of online gambling known as Crash games was approved, thereby expanding the offerings beyond those that have been permitted under the licensed regime since 2015.

At the present live casinos cannot be operated in Portugal. This topic is frequently a subject of ongoing debate.

Excessive regulation concerning game mechanics stifles diversity and creativity in website offerings. As a result, licensed operators in Portugal tend to provide similar products, lacking innovative variants due to restrictive regulations. This may lead to a situation where licensed operators feel discouraged from investing in the market, as they are limited to offering the same type of services.

Portugal is highly recommendable to start-ups looking to invest in the online gambling market. The licensing process is clear and straightforward with no surprises along the way provided that the entity is well prepared and aware of all the licensing obligations. The administrative costs associated with obtaining a licence in Portugal are low. Furthermore, the online licensed market is fully accessible in Portugal allowing any interested party to apply for a licence at any given time.