Regulation of Online Gambling in Portugal
In 2015, Portugal introduced the "Online Gambling and Betting Legal Framework" (RJO), which set clear regulations for operators wishing to conduct online gambling activities both domestically and internationally.
The law is enforced by the Gambling Regulation and Inspection Service (SRIJ), which ensures user safety and sets different tax rates for various types of gambling.
According to SRIJ data, in the first half of 2023, online gambling revenue in Portugal reached 389 million euros, an increase of over 30% compared to the previous year. This growth trend is expected to continue into 2024.
In addition to a variety of gambling platforms, technological advancements and strict regulation have ensured player trust. According to SRIJ data, in the first half of 2023, special tax revenue from online gambling exceeded 140 million euros, providing financial support for the country's public projects.
Social Benefits of Taxation
The taxes from the gambling industry not only enhance the national economy but also support various social projects. Portugal's gambling taxes can be allocated to public health, education, culture, and sports sectors.
The National Health Service (SNS) can use these funds to improve medical facilities, purchase equipment, and support disease prevention efforts. In 2024, the health budget from gambling taxes is expected to be 13.5 billion euros, with 13.2 billion euros going directly to the SNS.
These funds can also support scholarships, scientific research, educational modernization projects, as well as digital inclusion, cultural projects, and community sports activities.
Economic Impact of the Gambling Industry
The online gambling industry not only boosts tax revenue but also creates job opportunities. Although most operations are conducted online, a substantial support team is needed to provide customer service, marketing, software development, and other services.
For example, the eGames Lab consortium has invested nearly 30 million euros and will create 112 jobs by 2024.
Additionally, some operators also need to conduct part of their business in Portugal, further boosting the local economy.
International Experience
Portugal is not the only country that uses gambling revenue to promote economic and social development. Countries like Spain, the UK, and Italy also regulate online gambling, allocating part of the tax revenue to social welfare and local economic development.
According to PORDATA data, in 2022, the online gambling market in several European countries grew by an average of 25%, with Portugal also participating in this growth trend, using gambling revenue to drive social and economic development.
