Portugal's strategic location makes it a hub for bettors and operators seeking more profitable opportunities. Laws and regulations guide every online gambling activity in Portugal.
These laws help monitor the ever-growing gambling scene in the country and ensure fair practices amongst operators.
Right now, one of the most talked about laws is Law no 73/2014, which grants the government the right to monitor online gambling. This article will discuss the importance of this law and how it affects online gambling in Portugal.
What’s Currently Permitted under Law No. 73/2014?
While the legal framework for land-based gambling was established in 1989, online gambling was only legalized in 2014. It was legalized under Law No. 73/2014, of September, and further updated in 2015 by the Online Gambling Legal Regime (Decree-law No. 66/2015, 29 April). The Gambling Inspection and Regulation Service (SRIJ) created this law to regulate all aspects of online gambling activity.
- The SRIJ must authorize every online gambling activity to be done on a geo-restricted basis. That means only 'pt.' gambling websites can operate in Portuguese territory.
- Gambling operators are required to connect every national and international account to a Portuguese-licensed website. Every state-run game must comply with the extensive legal framework from 1955.
- Operators must maintain payment methods that use only legal tender. Cryptocurrencies are not allowed.
Portugal Regulatory Authority Compared with the United Kingdom
Portugal and the United Kingdom are two major flag bearers of land-based and online types of gambling. To compare the gambling scene in these two regions, Kingcasinobonus checks out dozens of online casino bonuses and updates its full index of offers frequently with the “New casino” tag added to their latest postings.
The security measures in these operators offer consumer protection from suspicious activities. The differences in operations lay majorly in the relevant authorities that enforce responsible gambling:
- Online casinos registered in Portugal must be regulated by serviço de regulação e inspeção, while those in the UK must be by the United Kingdom Gambling Commission. The casinos operating under the UKGC must give a percentage of their gross revenue,
- Operators must obtain a license from SRIJ in Portugal for different categories, such as lottery, online gambling tax or stamp duty, sports betting, and data protection. The UKGC is majorly responsible for the UK licensing regime.
- The taxation system in Portugal is high for operators. Online sports betting, for example, is taxed at 8%, which is usually too high. The UK, on the other hand, imposes a tax of 21% on GGR for online gambling and betting activities.
- Only a few number of gambling services are legally available. For example, the de regulação e inspeção de licenses operators to only offer casino games like Blackjack, Poker, Baccarat, American Roulette, French Roulette, and other special online features. Operators in the UK are licensed to offer wider slot machine services, more advanced banking services, and financial information.
Proposed Projects for New Regulations in 2024
The surge in online gambling activities peaked in 2020 during the Covid pandemic. It was during this period that the regulação e inspeção de jogos decided to review some online gambling laws. The proposed projects for new regulations focus on modernizing the current framework.
Tax Reform and Audit for Online Gambling
Operators criticize the current taxation system for being too high. The regulatory authority in Portugal's gambling scene is set to revise the tax structure for operators. The proposal for tax reform could include a more competitive and fair tax turnover system, which could improve Turismo de Portugal. It could also improve competition with other European countries that tax operators on Gross gaming revenue.
Online Poker Liquidity Sharing and Esports Betting Reforms
SRIJ is set to amend the law that permits operators to share their online poker liquidity with other nations in Europe. This will improve the interactive media with other countries. SRIJ's legal framework could also create a specific regulatory body for esports betting to differentiate it legally from traditional sports betting.
Tips for Players: What to Know Now & What to Be Aware of Later
To have a successful gambling career in Portugal, there are certain legal tips that every gambler should know:
- Punishments for offence: Failing to comply with gambling laws and regulations in Portugal attracts certain punishments. For example, operating an online casino without a license could lead to a 5-year imprisonment or a penalty payment.
- License Validity: After obtaining certification reports, the SRIJ will run a homologation test to double-check and ensure compliance. Online gaming licenses in Portugal are valid for three years and can be renewed afterwards.
- Self-exclusion: Many gambling platforms in Portugal have self-exclusion programs that allow gamblers to exclude themselves from gambling activities. These programs play significant roles in ensuring responsible gambling.
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