The gaming industry has long been a staple in both the UK and Portugal, yet how each of these two nations regulates and engages with betting differs greatly from the other.
While both nations boast lively betting markets, the variances in licensing, taxation, consumer culture and bets offered highlight the differing approaches taken in each.
For the gaming professional or recreational gambler, the below comparison might provide insight into how gaming evolves in different regulatory environments.
Licensing and Regulation
One of the major differences between the Portuguese and the UK betting markets is the way they are regulated. The UK is regulated in the name of the UK Gambling Commission (UKGC) with clear licensing standards and an open market for the operators. The structure is such that numerous bookmakers are able to operate if they comply with stringent standards on fairness, consumer protection and responsible gaming.
In contrast, Portugal's market is tightly regulated through the Serviço de Regulação e Inspeção de Jogos (SRIJ). Portugal's regime is more closed, with fewer operators receiving approval due to high taxes and onerous conditions. Consequently, there are fewer legal sites to bet on available and it limits the options available to Portuguese gamblers when compared to the UK market.
A Hindrance to Portuguese Operators
Taxation is a major influence on the betting dynamics in both countries. In the United Kingdom, the operators pay a comparatively stable 21% tax on gross gaming revenue (GGR), a percentage they believe is competitive to contribute to the nation's treasury. The tax structure has supported a healthy business, with many betting companies thriving in the United Kingdom market.
In the meantime, Portugal's tax regime is generally regarded as a deterrent for operators. Bookmaking firms are subject to a tax rate of up to 30% on turnover and it is hard for companies to be profitable with such a tax regime. It has deterred several global bookmaking firms from operating in the Portuguese market, reducing consumer options and prompting some gamblers to access offshore bookmaking sites. The effect on the Portuguese betting market is clear in the form of fewer operators in comparison to the vast array in the UK.
The Digital Divide
The UK and Portugal have both embraced online betting but with varying degrees of accessibility. The market in the UK is extremely competitive with numerous operators providing deals, mobile apps and in-play betting. The sites are regulated by the UKGC so they are operated fairly and securely to provide a safe and vibrant betting experience.
Portugal's legal online betting market is more limited. Due to tough licensing requirements and a high-tax environment, the number of licensed online betting sites is much lower. It has driven some Portuguese gamblers to offshore websites despite the government's attempts to suppress unlicensed betting. If you want to find some cool betting options, clicking here will give you a quick look.
Consumer Trends
The way people engage with gambling in the UK and Portugal is very different too. The most prevalent form in the UK is sports betting, with football, horse racing and greyhound racing leading the way. The presence of high-street bookmaking shops and the proliferation of online websites have made it a normal and easy pastime.
Football remains the most bet-on sport in Portugal but casino games are just as strong in popularity. The local casino presence in regions like the Algarve is helping to drive interest in table games such as roulette and poker. Betting in Portugal is widespread but the cultural psyche is not the same when compared with the UK where sports betting is an integral part of the sports culture.
Betting Promotions
Promos and bonuses are an important part of online betting but have varying regulatory requirements in the United Kingdom and Portugal. Bookies in the United Kingdom consistently offer free bets, reward deposits and loyalty rewards to attract and reward customers. The promos are regulated but remain a significant part of the betting culture.
Portugal does have tighter promotion regulations on betting, however. The government there tightened promotional and advertising arrangements because they have problem gambling issues. That equates to Portuguese players getting fewer rewards in comparison with the player base in the UK because the betting experience is less enjoyable in some ways in Portugal.
A Contrast in Physical Presence
The second main difference between the two markets is the availability of bookmaking shops on the ground. Bookmaking shops in the UK are a common sight on the high streets in cities and towns and are a place where punters are able to place bets on sports and events. The visibility of big brands such as Ladbrokes, William Hill and Coral is a reflection of the high street bookmaking culture in the United Kingdom.
Portugal's market is casino-based, though. Sports bookmaking shops are there but far less prevalent in the country than in the United Kingdom. Casinos in cities like Lisbon, Porto and the Algarve are the movers in the country's gaming market instead, with locals and visitors alike patronizing the gaming floor in these venues.
Two Markets, Two Approaches
Where both the UK and Portugal share a keen interest in betting, their regulatory and cultural approaches differ. While the open and competitive market in the UK has made it a worldwide gambling hub, the restricted model of Portugal has limited the growth of the market yet ensured greater control by the state. Both nations will be eagerly observed in the future of betting by both operators and players to determine the paths these markets are likely to follow.
